36 research outputs found
Impact of Normative Institutional Factors on Sustainability Reporting
The article explores the impact of normative institutional factors on the development of sustainability reporting. The vast majority of research in the scientific literature focuses on mandatory institutional factors, i.e. how public institutions and market regulators affect sustainability reporting. Meanwhile, there is lack of empirical data for the impact of normative institutional factors. The effect of normative factors in this paper is based on the role of non-governmental organizations (NGO) and institutional theory. The case of Global Compact Local Network in the developing country was examined. The research results revealed that in the absence of regulated factors, companies were not active with regard to social disclosures; they presented non-systemized social information of a descriptive nature. Only 10% of sustainability reports were prepared using the GRI methodology. None of the reports were assured by third parties
The Importance of Bankruptcy Prediction and Methods
The analysis based on the scientific studies of literature on bankruptcy procedures shows that companies are announced as insolvent rather too late. In order to secure successful and permanent company's activity, it is important to rationally value its financial condition constantly. Scientists tried to find integral method, which credibly allows to predict companies financial problems in time. Applying bankruptcy prediction models is one of the most simple as well as accurate ways for predicting bankruptcy of enterprises. With the help of these models, the threat of bankruptcy could be noticed several years before bankruptcy actually starts. In this paper after the analysis of bankruptcy prediction importance and bankruptcy dynamics in Lithuania, bankruptcy prediction models commonly used in scientific literature are given in a systematic way. If all suggested methodologies are analysed, every enterprise can find the most appropriate methodology to value the stability of its activity
Investigation of financial valuation methods correlations in the aspect of information disclosure
[...] Research problem. The choice of financial valuation methods is more related to different attitudes towards valuation methodology of a company. These attitudes differ according to information necessary in estimation of valuated situations. Cost and capital valuation attitudes differ in historical data of financial reports. During the valuation of companies in accordance with income and increase attitudes, data about existing and forecasted net cash flows and their increase rates is necessary. From a market viewpoint, valuation is based on data of financial reports of the being compared companies and average rates of branch of industry. However, classification of different attitudes is not enough. For the valuation of a subject it is more important important to know which methods can be replaced because they reveal similar information. Research aim is to investigate which financial valuation methods can be replaced when evaluating the aspect of information disclosure. In order to achieve the main aim two objectives were set: 1) to distinguish factors which influence the complexity of valuation methods calculation in the information disclosure aspect; 2) to determine correlations between financial valuation methods. Great variety of financial valuation methods exists. Different financial valuation methods are based on different data and indexes, necessary for selection of financial valuation methods is influenced by factors of financial data, defining the complexity of method calculation and its adaptability possibilities. The need to determine the complexity of the calculation of the financial valuation method is related to the principles of the selectivity and rationality. The estimators behave rationally, therefore, they should apply financial valuation methods which correspond to their aims and are not too complicated.The scientific literature, the topic of which is financial data used for the valuation, marks these calculation elements of the financial valuation methods, at the same time determining their level of complexity, i.e. various profit sizes; capital costs; (Arzac, 2005; Copeland, Koller&Murrin, 2000; Fernandez, 2002); cash flow (Arzac, 2005; Copeland et al., 2000; Fernandez, 2002; Collier, 2006), discount index. The analyzed regularities of the selection of the financial valuation methods in the manufacturing industry showed that one part of the financial valuation methods correlates together when achieving the valuation aims related to investment and decision making. Strong correlations of financial valuation methods in Lithuanian manufacturing branch were determined: ROA and ROE; ROA and the profit capitalization; the balance value and with market value, profit capitalization; EVA and MVA; the market value and relative value, P/BV, profit capitalization, EVA, CFO, MVA; EVA and balance value, relative value, profit capitalization, CFO, MVA; CFO and CVA
Savanoriškai atskieidžiamos informacijos vaidmuo finansiniame vertinime
Straipsnyje atskleidžiama, kad sudėtingėjant verslo ryšiams, susiformavus įvairioms informacinės sistemoms ir kuriantis įvairių teisinių formų ūkiniams subjektams, informacija tapo ketvirtuoju gamybos veiksniu. Informacija kaip išteklius pagerina veiklos efektyvumą, padidina produktyvumą, dėl geresnių priimamų sprendimų ir užtikrina ilgalaikį konkurencinį pranašumą. Žinių ekonomika akcentuoja kapitalo rinkų informacinį efektyvumą ir jo didinimą įmonėms atskleidus privalomą ir savanorišką informaciją. Šiame straipsnyje informacija – tai organizuoti faktiniai duomenys ir jų tarpusavio ryšiai, apibūdinantys tam tikrą, vertinamos įmonės situaciją. Mokslinė problema formuluojama klausimu: kokia savanoriška informacija turėtų būti atskleidžiama kapitalo rinkose ir įmonės apskaitos duomenyse, atliekant finansinį vertinimą? Tyrimo objektas – savanoriškai atskleidžiama informacija ir jos įtaka finansiniam vertinimui. Apibrėžtas tyrimo tikslas – ištyrus savarankiškai atskleidžiamos informacijos veiksnius apskaitos teorijose, atlikti finansinių vertinimo metodų klasifikaciją, pagal atskleidžiamą informaciją. Siekiant tikslo straipsnyje išskirti svarbiausi savanoriškai atskleidžiamos informacijos veiksniai normatyvinėje, pozityvinėje ir socialinėje apskaitoje, suklasifikuoti finansiniai vertinimo metodai pagal atskleidžiamą informaciją. Naudoti mokslinės literatūros lyginimo ir loginė analizės, finansinių vertinimo metodų klasifikavimo tyrimo metodai.Importance of information as economical resource in modem market conditions is significant in valuation of companies. Calculation of financial valuation methods is based on financial statements; however, more information that may be disclosed only voluntarily is needed for more complex valuation methods. There are approaches to voluntary information disclosure analyzed according to positive, normative and social accounting theories in the article. Based on the theories mentioned above, classification of financial valuation methods is offered that distinguishes profit and fiows methods, as well as their significance in respect to disclosure of information on company's value is discussed
The Investigation of financial reports' complexity in large companies
The article presents the investigation of financial statements' complexity in large companies. In this information age the problem we met in financial valuation is the volume of obligatory and voluntary disclosed information and how it influences the complexity. The aim of research is to find out the complexity of financial statements of Lithuanian companies which are listed in the stock market exchange. Factors influencing the level of financial reports' complexity can be grouped: requirements for legal environment of information disclosure, multiple and volatile activity, volume of voluntary disclosed financial and non financial information in financial statements. And finally referring to Damodaran's adapted methodology an information based index can be used for measuring complexity. The investigation of financial reports' complexity was carried according to the financial data of fifteen Lithuanian companies listed in stock market exchange. The results showed different volume of voluntary information disclosure in the companies and disclosed little information about working capital, researches and forecasts
Finansinių vertinimo metodų adaptavimas priklausomai nuo vertinimo tikslų, susijusių su investavimu ir valdymu
The article focuses on the choice of financial valuation methods based on valuation aims. Different valuation subjects can achieve various valuation aims. All aims were grouped into two groups: investment valuation aims and decision making valuation aims. Eighteen financial valuation methods were discussed in the article: eight of them are based on accounting data and eight - on a cash flow. The problem of choice of financial valuation methods arises because of information disclosure asymmetry between external and internal information users. Both users may have the same valuation aims, but the volume of the disclosed information and the necessary result differ. So the special expert survey was created and carried out to investigate which financial valuation methods are preferred to each group of valuation aims
Disclosure of social responsibility in annual performance reports of universities
The objective of this paper is to investigate how Lithuanian public universities implement the concept of social responsibility and disclose sustainable information in their annual performance reports. The research methodology employed content analysis of annual performance reports and descriptive statistics. Three areas were chosen according to GRI G4 (2013): environmental performance, economic performance and social performance (which is divided into four parts: labor practices and decent work, human rights, society, product responsibility). Additionally it was included educational dimension. Since in Lithuania, social responsibility reporting is not compulsory, in their annual performance reports universities are focusing on the areas which appear essential for them. There is a lack of uniform reporting and so the disclosures of different universities are not comparable. Also, not each and every area is always reflected in the reports. Mostly discussed are Economics and Social areas, while Environmental and Educational are not reflected at all in some universities. The results can be used for comparing reporting practices among different universities and countries, and also for further improving sustainability reporting
The research of tangible asset role in the company's competitive environment
Straipsnyje pateikiamas teorinis materialiojo turto vaidmens tyrimas konkurencinėje aplinkoje. Analizuojama, kaip keitėsi turto samprata vadybos raidoje. Siekiant įvertinti materialiojo turto reikšmę šiandieninėje konkurencinėje aplinkoje, atlikta turto charakteristikų, kuriant strateginį pranašumą analizė, įvertintas išorinių ir vidinių turto charakteristikų ryšys. Straipsnio pabaigoje išskirtos strateginės ir nestrateginės turto vidinės charakteristikos.In last decades of growing competitive business environment it became very important to manage available recourses as good as possible. Despite of the fact that importance of intangible asset is accented more and more, physical asset forms the main infrastructure of any business and its effective management is important for comprehensive success. In The article trend of asset management asset conception fluctuation in management evolution is supplied; industrial, information and relationship ages are defined. In industrial age the main competitive aim was domination in the market and orientation to profitability growth through physical asset, mass production and control interaction. In information age the defining characteristics of economical success shifted from product to services, the possibility to manage big data amount and make available information effective became the ground of business success. In relationship age business attends to make influence to relationship between customers, employees, partners, suppliers and even investors in order to move their products and services to persistent experience which creates unique value. During the last years academical society raised the importance of the asset in order to achieve competitive advantage. Then internal and external asset characteristics for competitive advantage are investigated. Assets that help to create competitive advantage groups are defined, internal and external asset characteristics are analyzed and the relations between these characteristics are described. It is pointed that company can save long term return only from using resources which are valuable, rare, and inimitable and involve organizational. External characteristics defined as strategically depend from common asset characteristics which display in asset‘s nature so their origin reasons are named as internal asset characteristics
Measurement of Social Innovation at Organisation’s Level: Theoretical Issues
The paper presents theoretical issues of social innovation measurement due to its multidimensional context. The purpose of this paper is to review the theoretical background on the topic of social innovation concept and TBL approach and to propose the conceptual model for measuring the value of social innovation at an organisation’s level