Evaluating the importance of financial and non-financial indicators for the evaluation of company’s performance
The topicality of the research is determined by the studies on financial and non-financial indicators by many authors, although there are difficulties in their practical use since there is no united approach in the measurement and evaluation of both financial and non-financial indicators. The current research is based on the earlier theoretical studies by the author on the use of the financial and non-financial indicators in the evaluation of the company’s performance; as a result of the previous research the groups of the financial and non-financial indicators were established and later on used in the practical research by the author. The aim of the research is to assess the importance of the financial and non-financial indicators in accordance with the opinions of the Latvian business persons and top-level officials of the Latvian companies. The research methods used in the research: information analysis and synthesis, logically constructive method, methods of data classification, comparative method, factor analysis and clustering methods. The results of the research demonstrate that the majority of the respondents find the financial indicators to be moderately important or very important, but the non-financial indicators- highly important. It could be concluded that the non-financial indicators are evaluated higher than the financial indicators, which confirms the necessity to use the non-financial indicators in the evaluation of the company’s performance.
JEL codes: G30, M21.
Article in: English
Published on-line: 2015-03-23
Keyword(s): financial indicators, non-financial indicators, company’s performance
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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355
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