engleski

Research of the Possibility of Implementation of "New" Measures of Performance in Croatian Business Practice

Rapid development of the information technology, increasing number of the participants in the capital markets, and the appearance of large number of institutional investors, created the new trends in business. Large number of these changes is reflected in the understanding of the existence and the goals of the business. The development and deregulation of the capital market have resulted in the following phenomenom: for many firms, to be present in the capital market does not mean any more to gain the financial resources, but also to create a positive image through higher prices of their shares. The capital is mobile, and its owners choose only those investments and instruments that ensure the satisfying return, related to the level of the risk they took. Academic community, as well as the consulting firms, have presented "new" measures of performance, like EVA (Economic Value Added), CFROI (Cahs Flow Return in Investment) and SVA (Shareholder Value Added), as well as some similar measures stemming from the concept of value based management. Tha main goal of the paper is to study the potentials of implementation of the above mentioned measures in Croatian business practice, with special emphasis on the research of the structural features of the capital market, which represents the important source of information regarding the establishment of the common key element for every new measures of performance, i.e. capital costs.

value based measures; cost of capital; Croatian capital market structure

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