Identification and Application of Sectoral and Corporate Value Drivers
Coordination of Business Activities and Sustainability Practices in Shareholder Value Creation
Abstract
Today, businesses exist in a volatile and complex competitive environment. Measuring different aspects of performance and shareholder value is also complex and requires careful consideration. There are many business intelligence tools out there, one of which is structured numerical analysis. This also includes the financial benchmark, the importance of which increases during the expansion of the markets, but also during the withdrawal from the markets. Currently, a multi proportional method is used, and their connection with shareholder value creation has hardly spread. The goal is to examine the implementation of the EU directive, according to which companies can create long-term, sustainable values instead of short-term benefits. In our article, we present the use of tools that provide more information content in the financial benchmark. Our research questions: Why and how can corporate sustainable management, growth and value creation build on each other in practice? What quantitative and qualitative value creators can be identified from the past years? Where and how can the obtained results be applied? They even serve to replan the work of the decision-makers. We perform database and case analysis with the analysis module of the FINel financial expert system, which we supplement with content analysis and the results of corporate consulting work. The financial benchmark is the sectoral sample of the top 1000 Hungarian county companies and the AKI sample. Both samples contain aggregated data from balance sheets and profit and loss statements. While meeting or exceeding benchmarks as reference values is an important signal of success, underperformance is an early warning signal that can even lead to the destruction of the company's value.
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