DETERMINING THE COMPANY'S VALUE AS AN INDICATOR OF CORPORATE GOVERNANCE EFFICIENCY: MAIN APPROACHES AND METHODS

Abstract

The article deals with the issue of determining the value of a company, which is one of the key components of corporate governance. Valuation allows assessing the level of competitiveness and success of a company in the market. The process of determining the company's value is performed for a specific purpose, which affects the choice of valuation method. The company's value can serve as an indicator of corporate governance efficiency, and its precise determination depends on the approaches and methods chosen. The article systematizes the existing approaches to determining the value of a company and the methods according to each approach (income approach methods, cost (property) approach methods, comparative approach methods and methods of the integrated approach to valuation of a company), analyses the peculiarities of their application in practice, and identifies the advantages of this systematization when using the existing approaches and methods of valuation in practice. It is determined that the existing approaches and methods are not mutually exclusive, but complement each other, and the choice of valuation methods mainly depends on the characteristics of the company being valued and the criteria for selecting methodological tools. Usually, the valuations obtained using various valuation methods are compared with each other, which allows for an adequate valuation of a particular company, taking into account the maximum number of factors of influence and value formation. The process of company valuation becomes an effective tool that allows timely adaptation of management decisions to changes in market conditions. The value of a company is an indicator of the effectiveness of decisions made by owners and management personnel. In the article, the authors focus on the importance of determining the value of a company as a component indicator of the effectiveness of corporate governance, in particular, the relationship between effective corporate governance and the growth of the company's value. Possible directions for further research on this issue are outlined, in particular, the development of a comprehensive (integral) approach to the valuation of companies.