![]() The value is created by pursuing the goals that support value creation (Hundal, 2015). Value-based management focuses directly on creating value. It is a holistic management approach which focuses on working towards the value or in other words, maximizing shareholder value. The objective of the firm, its systems, strategy, processes, analytical techniques, performance measurements and culture have as their guiding objective shareholder wealth maximisation.” Value-based management interlinks the valuation of the shares of a company with its strategy, organizational and financial situation. According to Glen Arnold (Arnold, 2013), value-based management (VBM) could be defined as “a managerial approach in which the primary purpose is long-run shareholder wealth maximisation.
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