Importance Whereas the efficiency of corporate lending and customers' ability to build value are mutually related, the main issue of examining tools for better substantiation of lending decisions gains even higher relevance, using analysis of growth in value. Objectives The objective of the research is to examine tools and methods so to prove reasonableness of lending decisions in terms of considering companies' ability to build value added. Therefore, the study focuses on the result of banks dealing with corporate customers in relation to lending, with tools for building value for customers being the subject matter of the research. The article illustrates the case study of entities in the fuel production sector. Methods The research suggests investigating the efficiency of lending decisions on the basis of value-added modeling. The results of the analysis allow evaluating whether companies are capable of generating return on equity, considering the current lending practices. Whereas banks consider market capitalization rates when taking their decisions on granting loans to major joint stock companies, the other part of the research compares ratings of public companies in terms of capitalization and market value added. Such a comparison sorts out companies by market value added and determines the relation between the two indicators. Results The research proves the applicability of the proposed tools for improving substantiation of lending decisions through analysis of growth in value. It facilitates control over market value added of the firm and helps banks and corporate customers cooperate more effectively by maximizing value and ensuring repayment of loans in the future. Conclusions and Relevance The solution has scientific significance since it provides reasoning on the applicability of the proposed tools for improving substantiation of lending decisions.
Keywords: market value added, lending decisions, analysis, growth in value, modeling
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