VALUE OF THE COMPANY : A Review of Literature

Abstract

Each company aims to maximize shareholder wealth through increased value of the company. The value of the company is the market value of debt and equity securities outstanding companies and the investors' perception of the level of success of the company that are often associated with stock prices (Keown, 2004). Investor confidence in the company's financial performance and prospects of the company in the future can be built through the creation of value for the company. Various theories Financial Management that discusses are Corporate Value, Market Value of the Firm Theory. Besides Value Company also has links with some of the concepts and theories of the Agency Theory, Theory of Trading Volume of stocks, Theory Diversified Portfolio, Theory Ownership structure of the company, Free cash flow, Investments, Stock liquidity, Risk and Return, Operating Performance, and Corporate Governance.

Keywords: Value of the company, a review of literature