THE ASSESSMENT OF FINANCIAL AND NON-FINANCIAL INDICATORS IN EVALUATING THE PERFORMANCE OF A COMPANY
DOI:
https://doi.org/10.17770/lner2013vol1.5.1156Keywords:
Financial indicators, non-financial indicators, importance, impartiality, interfering factors, evaluationAbstract
In this article the findings of a survey of entrepreneurs’ viewpoint are collected. It is carried out with an aim of clarifying the importance of financial and non-financial indicators in evaluating the performance of a company as well as the factors that influence the impartiality of financial and non-financial indicators and the factors that interfere with financial and non-financial analysis of a company. The topicality of this research is based on the reason that many authors have carried out research into the systems of financial and non-financial indicators. However, the arising issues are connected with the practical application because of the lack of unified approach to identifying, classifying, measuring and evaluating indicators of financial activities. This research is based on preceding theoretical work about the uses of financial and non-financial indicators in evaluating the performance of the company. The aim of this research is to carry out assessment of the importance of financial and non-financial indicators in evaluating the performance of the company, using the opinion of Latvian entrepreneurs. For this research we used method of online survey, using simple random selection or the method of real random selection.Downloads
References
CARDINAELS, E., VAN VEEN-DIRKS, P.M.G. Financial versus non-financial information: The impact of information organization and presentation in a Balanced Scorecard. Accounting, Organizations and Society. 2010. Vol.35, p.565–578.
CHEN, JA-SHEN, TSOU, HUNG TAI, HUANG, A.YA-HUI. Service Delivery Innovation: Antecedents and Impact on Firm Performance. Journal of Service Research. 2009. Vol.12, Number 1, p.36-55.
COHEN S., THIRAIOS D., KANDILOROU M. Performance parameters interrelations from a balanced scorecard perspective: An analysis of Greek companies. Managerial Auditing Journal. 2008. Vol. 23 Iss: 5, p.485 – 503.
FERNANDES, K.J., RAJA, V., WHALLEY, A. Lessons from implementing the balanced scorecard in a small and medium size manufacturing organization. Technovation. 2006. Vol.26, p.623–634.
HAFEEZ, K., ZHANG, YB., MALAK N. Determining key capabilities of a firm using analytic hierarchy process. Int. J. Production Economics. 2002, Vol.76, p.39–51.
HOPWOOD, A.G. An empirical study of the role of accounting data in performance evaluation. empirical research in accounting: selected studies. Journal of Accounting Research. 1972. Vol.10, p.156–182.
KOTANE, I. The role of the analysis of financial and non-financial indicators in assessment of performance of the companies. Management theory and studies for rural business and infrastructure development. Research papers 5(34), Lithuanian University of Agriculture Kaunas, 2012. p.93.-104.
KOTANE, I., KUZMINA-MERLINO, I. Non-financial indicators for evaluation of business activity. European integration studies. Research and Topicalities. 2011. No.5, p.213.-219.
KOTANE, I., KUZMINA-MERLINO, I. Assessment of financial indicators for evaluation of business performance. European integration studies. Research and Topicalities. 2012. No.6, p.216.-224.
LAU, C.H., SHOLIHIN, M. Financial and non-financial performance measures: How do they affect job satisfaction? The British Accounting Reviewer. 2005. Vol. 37, p.389-413.
PHILIPS, P., LOUVIERIS, P. Performance measurement systems in tourism, hospitality and leisure small medium-sized enterprises: a balanced scorecard perspective. Journal of Travel Research. 2005. Vol.44, p.201-211.
PRIETO, I.M., REVILLA, E. Learning capability and business performance: a non-financial and financial assessment. Learning Organization. 2006. Vol.13 Iss: 2, p.166 – 185.
ŠOBOTA, A., PELJHAN, D. Importance of different perspectives in integrated performance measurement systems. Journal of Business Management. 2012. special edition Nr.5, p.6.-19.
WIER, B., HUNTON, J., HASSAB ELNABY, H.R. Enterprise resource planning systems and non-financial performance incentives: The joint impact on corporate performance. International Journal of Accounting Information Systems. 2007. Vol.8, p.165–190.
WIERSMA E. An exploratory study of relative and incremental information content of two non-financial performance measures: Field study evidence on absence frequency and on-time delivery. Accounting, Organizations and Society. 2008. Vol.33, p.249–265.
