Top PDF CONTEMPORARY APPROACHES OF COMPANY PERFORMANCE ANALYSIS BASED ON RELEVANT FINANCIAL INFORMATION

CONTEMPORARY APPROACHES OF COMPANY PERFORMANCE ANALYSIS BASED ON RELEVANT FINANCIAL INFORMATION

CONTEMPORARY APPROACHES OF COMPANY PERFORMANCE ANALYSIS BASED ON RELEVANT FINANCIAL INFORMATION

Profit and loss account - the traditional tool for assessing the company’s performance Most companies have as main objective to maximize the profit, so traditionally the company performance is evaluated based on profit, reflected in the profit and loss account. The profit and loss account gives a retrospective view of the operations that influenced the financial result of the exercise (Moscviciov 2011: 75) and explains the way the result of the exercise is formed as an expression of partial or global adjustments between different types of income and expenses (Mironiuc, 2006: 342). This analysis expresses the firm’s profitability on various levels.
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VALUE RELEVANCE OF GROUP FINANCIAL STATEMENTS BASED ON ENTITY VERSUS PARENT COMPANY THEORY: EVIDENCE FROM THE LARGEST THREE EUROPEAN CAPITAL MARKETS

VALUE RELEVANCE OF GROUP FINANCIAL STATEMENTS BASED ON ENTITY VERSUS PARENT COMPANY THEORY: EVIDENCE FROM THE LARGEST THREE EUROPEAN CAPITAL MARKETS

Financial statements’ main objective is to give information on the financial position, performance and changes in financial position of the reporting entity, which is useful to investors and other users in making economic decisions. In order to be useful, financial information needs to be relevant to the decision-making process of users in general, and investors in particular. Regarding consolidated financial statements, the accounting theory knows four perspectives (theories) on which the preparation of those statements is based, namely, the proprietary theory, the parent company theory, the parent company extension theory and the entity theory (Baxter and Spinney, 1975). Of practical importance are especially the parent company extension perspective and the entity perspective. The IASB and FASB decided (within an ED regarding the Improvement of the Conceptual Framework) that consolidated financial statements should be presented from the perspective of the group entity, and not from the perspective of the parent- company. However, this support for the entity theory is to our knowledge not backed by empirical findings in the academic literature. Therefore, in our paper we set to contribute with empirical arguments to finding an actual answer to the question about the superior market value relevance of one of the two concurrent perspectives (theories). We set to carry out an empirical association study on the problem of market value relevance of consolidated financial statements based on the entity theory respectively on the parent company (extension) theory, searching for an answer to the above question. In this sense, we pursued an analysis of market value relevance of consolidated accounting information (based on the two perspectives) of listed entities between 2003-2008 on the largest three European Stock Exchanges (London, Paris and Frankfurt). The obtained results showed that a „restrained” entity perspective, which would combine elements of entity theory (by focusing on the whole group equity) and elements of parent company extension theory (by focusing on income corresponding to majority interest), would have a superior relevance compared to the classical versions of the two mentioned perspectives.
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EXPENSES ANALYSIS BASED ON INFORMATION PROVIDED BY THE PROFIT AND LOSS ACCOUNT –COMPANY PERFORMANCE DIAGNOSIS STAGE

EXPENSES ANALYSIS BASED ON INFORMATION PROVIDED BY THE PROFIT AND LOSS ACCOUNT –COMPANY PERFORMANCE DIAGNOSIS STAGE

ABSTRACT: Expenses represent one component of the binomial that determines a company’s financial performance, the other component being the incomes. Diagnosing performance as part of the performance management has the purpose of providing managers with a feedback on previous actions and it acts as a basis for future decisions. Profit and loss account through its format, offers the possibility to analyze changes at expenses level and the evolution of their structure. This paper aims the analysis of the expenses of a dairy company based on information provided by the profit and loss account followed by the formulation of proposals and conclusions.
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Transinformação  vol.28 número3

Transinformação vol.28 número3

It was also considered the subject-object relationship, in which when the interpreter transpose the object in its materiality to the written document format using controlled language, the process is complex, limited, and slow. This process can also be characterized as a fruition process, which makes it an important action, especially for the field of memory and cultural heritage, in which it is essential to establish a cultural significance, justifying the object’s conservation and preservation (Ceravolo, 2010). However, in this case, the fruition, was limited to the interaction between the object and the researcher only, reducing the possibility of more information to be interpreted. One that the controlled language is considered as terms used in the NAC’s collection of documents and the words that are used in the social-historical context of this art center and refer to other documents that cite or mention NAC’s activities, exhibitions, and collection.
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COMPANY PERFORMANCE MEASUREMENT AND REPORTING METHODS

COMPANY PERFORMANCE MEASUREMENT AND REPORTING METHODS

The new financial performance measurement trend that uses non-financial indicators has brought about severe criticism towards the financial indicators, including criticism towards their aggregated form, too slow in offering useful information that would aid the managers in understanding the deep causes of the issues or that would help them initiate quick corrective measures. In the last years, a growing number of companies have started to lay stress on the measurement of certain non-financial aspects that have a financial impact, which had not yet stirred the interest of the managers, such as the clients’ loyalty, the satisfaction degree of the employees or other aspects concerning performance improvement, but which are not financial and have a later impact upon productivity.
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Rebranding of people management forum

Rebranding of people management forum

ployers can meet, share their information and new trends among themselves, and thus contribute to the HR community. The HR community, as any other else also seeks the external knowledge, and that´s the reason why conferences, meetings, trainings and educational sessions with external experts are so popular. The most reliable conferences are held by TOP Vision, Motiv P and People Management Forum. When considering further education, people in the Czech Republic still trust the most the public universi- ties, which offer several programs focused on the HR topic. Especially the traditional institutions such as the Charles University, the University of Economics in Prague or the Masaryk University are providing the education for free (they only charge for the long-distance studies in average around 40 000,- CZK). On the other hand, managers and top management often don´t have the time for another degree to study, which is why the public courses are getting more and more popular. Agencies such as MotivP or Top vision provide their seminars for 6 000 CZK,- in average. With the rising popular- ity of HR focus, the number of HR students has also risen; those became a target of tal- ent seeking companies such as Deloitte and Grafton Recruitment.
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Post-merger Innovative Performance in the Renewable Energy Sector

Post-merger Innovative Performance in the Renewable Energy Sector

There are three key parties of stakeholders in the renewable energy sector: society, government, and companies. These three stakeholder groups have partly conflicting goals. In the development process of the renewable energy sector, governmental interventions play an important role, because of the mismatch between social goals and producers and/or consumer incentives. Further challenges of the sector development are market imperfections, like network economies and lumpiness of investments, and public habits. The quasi-free market in energy technology leads to conflicts between innovators, who want to protect their technology through IP, and environmental and security externalities (Weiss and Bonvillian, 2013). Therefore, governmental initiatives, such as research and development subsidies (technology push policies) or deployment subsidies and feed-in tariffs (market pull polices) are supposed to incentivize clean energy innovation and further aimed reduce investment risks (Lee and Zhong, 2014). Albeit stakeholders from both developing and developed countries have expressed their concerns about the negative impact of traditional energy generation on the environment, the different regions still differ a lot in their stage of development (Lee and Zhong, 2014).
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PRESENTATION OF SUBSIDIES IN THE FINANCIAL REPORTS OF ECONOMIC ENTITIES a€“ NECESSITY AND IMPORTANCE

PRESENTATION OF SUBSIDIES IN THE FINANCIAL REPORTS OF ECONOMIC ENTITIES a€“ NECESSITY AND IMPORTANCE

In the case in which the first method is applied, at the moment they are received, subsidies for investments are registeredă ină theă accountă ―Subsidiesă foră investments‖ă andă areă goingă toă beă acknowledged as incomes on a systematic basis, during the periods needed in order to correlate them with the afferent costs that these subsidies will compensate. More precisely, subsidies connected to amortizable assets are acknowledged as incomes during the periods and in the proportion in which the amortization of these assets is acknowledged. The subsidies related to non – amortizable assets, such as lands, for instance, are acknowledged as incomes at the latest in the moment of ceding them or along the way, if the firm which has received the subsidy is conditioned by the compliance with some quantifiable obligations. It is the case of subsidization of an acquisitioned land, on which the firm is obligated to erect a building. In this situation, the subsidy shall be acknowledged as income for the duration of useful life of the construction. In the case in which the second method is applied, the accounting value of the asset is diminished by the size of the subsidy in order to reflect the net (real) effort of the company. If at some point one considers that the value of the assets does not reflect a real value, then one can decide their reevaluation.
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Prod.  vol.27

Prod. vol.27

On looking at Figure 2, it can be seen that a few steps of the MIGGRI model were not followed in the company under study. This limitation stems from the company’s lack of knowledge with respect to risk management practices. The limitations worthy of note were the complete exclusion of Phase IV of the model, regarding Desired Degree of Exposure to Risk. Since the company in question had not conducted a survey of its risks in earlier periods, it is difficult to have managers at this first moment fully grasp the notions of desired degree of exposure to risk. Therefore, it is understood that this step is best suited to companies with a greater understanding of their associated risks. The qualitative Assessment of Risks, as well as the Simulation of Future Scenarios, were also steps that were also excluded in this first application of the MIGGRI model, which therefore had to be adapted because of the lack of depth of the managers’ knowledge. However, it is understood that the model as a whole is applicable to companies belonging to the innovation environment, and the objective of this application was to support such a claim.
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Magnetic resonance imaging in multiple sclerosis--patients' experiences, information interests and responses to an education programme.

Magnetic resonance imaging in multiple sclerosis--patients' experiences, information interests and responses to an education programme.

substantially differ from the early diagnostic workup image to a follow-up scan during immunotherapy. Physicians need to be aware that a relevant amount of patients would even be happy to be able to read their own images to some extent. A controlled trial should be performed to show the added value to standard care as well as also possible side-effects. As patients’ needs might substantially differ within the diagnostic process and the later disease course, these differences need to be studied in further work. Such a program should be developed and evaluated following the MRC’s framework for the development and evaluation of complex interventions [23]. This pilot work offers an important preparatory basis for such a trial. Our data indicate that such an intervention might not only lead to more participation and
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Business intelligence and contribution of entrepreneurial information architecture

Business intelligence and contribution of entrepreneurial information architecture

In Portugal, the companies (mostly small and medium-sized) invest little in information systems and technologies due to their limited financial and organizational capacity. Then, they rarely adopt new ways of managing the business intelligence to address the numerous emerging events. One form of innovation these companies should bet on, especially those with a culture of customer service, is the creation of a platform based on technological tools easy to use, such as CRM (Customer Relationship Management systems), CMS (Content Management Systems) and ERP (Enterprise Resource Planning systems). These tools, converging on well planned platforms, contribute to the implementation of new business ideas, design of new products and services, improvement of existing processes and creation of new ones. Given this enormous potential, which may lead to a total reconfiguration of an organization, entrepreneurs should not only be familiar with this type of infrastructures, but also get involved from the very beginning of their adoption covering everyone in the organization.
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Critical information as a success factor in organizations: objective and methodological approach

Critical information as a success factor in organizations: objective and methodological approach

We are witnessing the need for a quick and intelligent reaction from organizations to the level and speed of change in business processes. These imperatives are very often associated to the emerging of new information systems and technologies, sometimes bursting change and other times being burst, which bring more challenges to organizations. The arising problems can be: from wrong information that lasts; systems not fully used or explored; too much staff; slow reaction to change; etc. This can be summarized in a governance problem that requires two main confluent action methods: people to synchronize their visions, ideas and strategies in the whole organization; and, in that context, select the information that strictly answers to the performance factors at the right moment. The proposed methodology is adequate here, once it turns to the potential of approach to the entrepreneurial architecture as well as to the potential of the information system in order to iteratively select and integrate the data and resources needed for that performance. The modeling of an information architecture of the company and its business helps in the identification of critical information, that is, of the one which is according to the mission, prospects and critical factors of business success at the required moment.
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EFFECTS OF RAISING CAPITAL ON FINANCIAL INDICATORS OF THE COMPANY

EFFECTS OF RAISING CAPITAL ON FINANCIAL INDICATORS OF THE COMPANY

The financial consequences of growth capital are different depending of accomplishing technical. )n these circumstances the General Meeting of Shareholders decide to increase capital. The decision depends on the effect of increasing the potential financial capital, financial stability and financial structure of the company. Next, ) will present the financial consequences of growth capital to a company profile in the petrochemical industry.

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Performance Optimization of Network Firewalls by Rulebase Reordering based on Traffic Conditions

Performance Optimization of Network Firewalls by Rulebase Reordering based on Traffic Conditions

With the growth of network complexity, it is very common to find firewall policies with thousands of rules. Modern firewall rulebase are growing in size and complexity at an exponential rate. As changes add up, the firewall rule base gets more complex. Firewall rulebase works on first-match principle. As a result, there exists scope of improvement in firewall performance, if highest utilized rule is brought ahead in rulebase. This will facilitate earlier matching and hence less firewall resource utilization. However, this should be done carefully without compromising overall firewall security or without loss of semantic integrity. In this paper, authors have proposed framework for rulebase reordering based on traffic conditions. To evaluate the performance of approach, authors further carried out performance testing on OpenBSD PF firewall by reordering rulebase under laboratory traffic. Results obtained indicate 9.57% improvement in firewall throughput and 11.9% improvement in concurrent connections after rulebase is reordered based on traffic conditions.
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THE RELATIONSHIP BETWEEN ECONOMIC VALUE ADDED AND CASH CONVERSION CYCLE IN COMPANIES LISTED ON THE WSE

THE RELATIONSHIP BETWEEN ECONOMIC VALUE ADDED AND CASH CONVERSION CYCLE IN COMPANIES LISTED ON THE WSE

It follows from formula No. 1 that the larger the net operating proit, the greater EVA is, and so the lower the CCC the better metrics of company assessment and cash faster returns to the company in terms of investment in working capital and more of these cycles can be performed during the year. In addition, EVA depends on the size of the capital invested and then the larger capital invested with the same size of operation the smaller EVA is. Depending on the strategy of inancing current assets in the enterprise, some of them may be inanced by long-term capital (conservative strategy), then the CCC should be relatively long because the level of inventories and receivables is high and inanced not only by short-term liabilities (zero working capital) but also equity. The relationship between EVA and CCC should be strong in the conservative strategy, while an aggressive strategy, where the liabili- ties inance assets, such relationship should be weaker because the long-term capital is not involved in the inancing of current assets. The relationship between EVA and CCC is based on net operating proit, which should show a negative correlation with the CCC (NOPAT increases, decreases CCC). It can therefore be hypothesize that the shorter the CCC the higher the EVA. Taking into account the function of liquidity and proitability, it may be expected that beyond a certain minimum liquidity there will be the opposite effect and decrease in CCC will be accompanied by decrease EVA.
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Transforming banking relationship management: an in-depth analysis of the determining factors for balanced bank-firm negotiations

Transforming banking relationship management: an in-depth analysis of the determining factors for balanced bank-firm negotiations

15 banks charge a premium for their informational monopoly, i.e., for accessing private information unavailable to the rest of the market. Ironically, several researchers actually argue that banks are usually more opaque than non-bank firms (Blau, Brough, & Griffith, 2017; Flannery, Kwan, & Nimalendran, 2013). This is very relevant for this study, as Banking Relationship Management solutions aim to close the transparency gap between banks and companies. The mentioned conclusions are all consistent with the work of Hernández-Cánovas and Martínez-Solano (2010), who found that “SMEs with longer bank relationships have enhanced access to loans, but at the same time they bear a higher cost for their debt. (…) firms maintaining two bank relationships get the cheapest debt, which establishes a limit for the degree of concentration of bank relationships. (…) the existence of trust between firm and bank improves access to financing and reduces the borrowing costs, whereas it increases the likelihood that guarantees will have to be provided. As a consequence, (…) a relationship based on trust is a better strategy to improve SMEs’ access to finance than the establishment of longer or more concentrated relationships.”.
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Elliott's Wave theory in the field of econophysics and its application to the PSI20 in the context of crisis

Elliott's Wave theory in the field of econophysics and its application to the PSI20 in the context of crisis

In the last decades and in the scope of the economic sciences, new interdisciplinary forms have been developed, of which Econophysics stands out. It uses theoretical bases of physics and of statistical physics for the explanation of economic phenomena, particularly financial phenomena. This work shows, through statistical physics, possible forms of chart analysis of a stock exchange index, through the practical application of Elliott’s Wave Theory to the movement of the Portuguese stock index, the PSI20. With the empirical application made to the PSI20, we emphasize the degree of reliability that the Elliott method has demonstrated when applied to large indexes, generating projection scenarios based on patterns of repetitive cyclic behaviour. It is possible, and for several moments, to identify the Elliott wave pattern, namely in the crisis period.
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FINANCIAL RATIO ANALYSIS USED IN THE IT ENTERPRISES

FINANCIAL RATIO ANALYSIS USED IN THE IT ENTERPRISES

Ratio analysis is the method or process by which the relationship of items or group of items in the financial statement are computed, determined and presented. Ratio analysis can be used both in trend and static analysis. There are several ratios at the disposal of an analyst but their group of ratio he would prefer depends on the purpose and the objective of analysis.

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COMPANY VALUATION METHODS BASED ON PATRIMONY

COMPANY VALUATION METHODS BASED ON PATRIMONY

The methods used for the company valuation can be divided into 3 main groups: methods based on patrimony, methods based on financial performance, methods based both on patrimony and on performance. The company valuation methods based on patrimony are implemented taking into account the balance sheet or the financial statement. The financial statement refers to that type of balance in which the assets are arranged according to liquidity, and the liabilities according to their financial maturity date. The patrimonial methods are based on the principle that the value of the company equals that of the patrimony it owns. From a legal point of view, the patrimony refers to all the rights and obligations of a company. The valuation of companies based on their financial performance can be done in 3 ways: the return value, the yield value, the present value of the cash flows. The mixed methods depend both on patrimony and on financial performance or can make use of other methods.
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TECHNOLOGICAL PROCESS MODELING AIMING TO IMPROVE ITS OPERATIONS MANAGEMENT

TECHNOLOGICAL PROCESS MODELING AIMING TO IMPROVE ITS OPERATIONS MANAGEMENT

This paper presents the modeling procedure of one real technological system. In this study, the copper extraction from the copper flotation waste generated at the Bor Copper Mine (Serbia), were the object of modeling. Sufficient data base for statistical modeling was constructed using the orthogonal factorial design of the experiments. Mathematical model of investigated system was developed using the combination of linear and multiple linear statistical analysis approach. The purpose of such a model is obtaining optimal states of the system that enable efficient operations management. Besides technological and economical, ecological parameters of the process were considered as crucial input variables.
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