Determinants of a Public Company’s Value

The success of investment decisions mostly depends on understanding the factors, influencing the efficiency of companies and, as a result, their market value. Taking into account a gradual shift in world economy development «to the East» over the last decades, investigation of a company value creation process in fast-growing Asian markets becomes particularly relevant. Rapid growth, by the way, requires the implementation of substantial investments (capital expenditures to increase the production capacity, investments in the creation of an intellectual capital of a company through R&D expenses), partially financed by debt capital. High risk of the lack of necessary effect from investments and related external factors can have a negative impact on the market value of a company. In this study on the base of 72 public non-financial Asian companies an attempt was made to identify extra signals, factors, which may have a significant effect on the company’s value and which, therefore, should be taken into account in the process of making investment decisions.