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Financial Position And Its Relevance To Stakeholders

Author

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  • MIRON VASILE-CRISTIAN-IOACHIM

    (“1 DECEMBRIE 1918” UNIVERSITY OF ALBA IULIA)

Abstract

The financial position of an economic entity is a concept that can have different meanings, depending on the stakeholder category that make its analysis. In energy sector, which is considered of high importance in the national economy, we consider that the most important category of stakeholder is the state (government), because ensuring the functionality of this sector is an crucial condition for development of others sectors from national economy. For this reason, we can look at the informational needs of other stakeholder categories trough the state’s “sine qua non” condition to ensure the optimal functionality of this sector, which manifests itself like this: the functioning of the sector involves the attraction of investors, the functioning of the sector involves the existence of human resources, the functioning of the sector cannot be ensured without the existence of commercial relations that involves suppliers and clients and for insuring the functioning of the sector it is often require various financing sources. All those aspects are giving raise to some categories of stakeholder interested over the parameters in which the energy sector entities are functioning, one of the interest domain being the financial position of the companies activating in its field. Over the present study we had in view to highlight the main present approaches regarding the concept of financial position, but also the main issues fallowed by the main stakeholder categories in their attempt to appreciate the financial position of the entities activating in energy sector which are listed to Bucharest Stock Exchange. The results of this study have showed that there is some base requirements regarding the informational needs of stakeholder regarding the financial position of the companies activating in energy sector, and those are related to the concepts of going concern, overall solvency ratio, general liquidity ratio and indebtedness degree. After this study it has concluded that the going concern is difficult to appreciate trough mathematical indicators. On the other hand, analysis of the overall solvency ratio, general liquidity ratio and indebtedness degree has shown that in the last 5 years analyzed entities had generally record satisfying evolutions, but it also highlight some entities in which the analyzed indicators show doubts regarding a balanced financial position.

Suggested Citation

  • Miron Vasile-Cristian-Ioachim, 2015. "Financial Position And Its Relevance To Stakeholders," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 356-365, April.
    • Handle: RePEc:cbu:jrnlec:y:2015:v:2:p:356-365
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    References listed on IDEAS

    as
    1. HADA Teodor, 2013. "Balance Sheet - Source Of Information For Determining The Financial Position Of Economic Entities," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 65(6), pages 72-83.
    2. Sergey Krylov, 2012. "Methodological Approach to Company Cash Flows Target-Oriented Forecasting Based on Financial Position Analysis," Economics Bulletin, AccessEcon, vol. 32(1), pages 830-836.
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    5. V.I. Ospishchev & I.V. Nagornaja, 2009. "Theoretical Substantiation Of Main Constituents Of Financial Position Of An Enterprise: Reliability, Solvency And Financial Stability," EuroEconomica, Danubius University of Galati, issue 1(22), pages 35-39, May.
    6. Teodor Hada & Teodora Maria Avram, 2013. "The Balance Sheet, Information Source For Determining The Financial Position Of Entities Listed At The Stock Exchange In Bucharest," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-22.
    7. Ecaterina Necsulescu, 2011. "Evolutions and Trends in Presenting. The Balance Sheet as a Financial Position Picture of an Entity," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 4(4), pages 89-104, August.
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