IDEAS home Printed from https://ideas.repec.org/a/jes/eurint/y2019v6p335-354.html
   My bibliography  Save this article

Assessing Financial Performance Of Companies Manufacturing Industrial Goods. Evidence On Performance Dynamics In The Period Before And After The Crisis

Author

Listed:
  • Mihaela Brîndușa TUDOSE

    (Gheorghe Asachi Technical University of Iasi, Romania)

  • Silvia AVASILCĂI

    (Gheorghe Asachi Technical University of Iasi, Romania)

  • Radu GOLBAN

    (Titu Maiorescu University of Bucharest, Romania)

Abstract

With a purpose of bringing bring back into discussion the usefulness of financial analyses using financial ratios, the study has three aims: to assess the financial performance of a sample of companies manufacturing industrial goods; to make financial performance forecasts; to identify various measures consolidating liquidity and profitability. The study suggests a reinterpretation of traditional approach to financial performance assessment and discusses the relevance of criticism towards traditional assessment methods (dealing mainly with the consequences and not the causes, lack of strategic orientation). The empirical research showed that insufficient liquidity and low level of return on equity were the main causes for the worsening of financial performance of studied companies. Although the analysis of profits and sales shows an increase in cascade, profitability ratios of equity and sales remain affected by too high operational costs The results indicate that the decisions adopted as a result of new circumstances (specific to periods before and after crisis) have impacted business sustainability.

Suggested Citation

  • Mihaela Brîndușa TUDOSE & Silvia AVASILCĂI & Radu GOLBAN, 2019. "Assessing Financial Performance Of Companies Manufacturing Industrial Goods. Evidence On Performance Dynamics In The Period Before And After The Crisis," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 6, pages 335-354.
    • Handle: RePEc:jes:eurint:y:2019:v:6:p:335-354
    as

    Download full text from publisher

    File URL: http://cse.uaic.ro/eurint/proceedings/index_htm_files/EURINT_2019_TUD.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rodrigo Lozano, 2015. "A Holistic Perspective on Corporate Sustainability Drivers," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(1), pages 32-44, January.
    2. Jim Lee, 2009. "Does Size Matter in Firm Performance? Evidence from US Public Firms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(2), pages 189-203.
    3. Mike Bourne, Andy Neely, John Mills, Ken Platts, 2003. "Implementing performance measurement systems: a literature review," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 5(1), pages 1-24.
    4. Iancu Aurel, 2010. "Sinteză privind modelarea fragilităţii sistemului financiar," Revista OEconomica, Romanian Society for Economic Science, Revista OEconomica, issue 03, September.
    5. Cory Searcy, 2012. "Corporate Sustainability Performance Measurement Systems: A Review and Research Agenda," Journal of Business Ethics, Springer, vol. 107(3), pages 239-253, May.
    6. Fenyves Veronika & Tarnoczi Tibor & Voros Peter, 2014. "Financial Indicators In Managerial Decision-Making," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 893-904, July.
    7. Aloys Ayako & Thomas Githui & George Kungu, 2015. "Determinants of the financial performance of firms listed at the Nairobi Securities Exchange," Perspectives of Innovation in Economics and Business (PIEB), Prague Development Center, vol. 15(2), pages 84-94, July.
    8. Judita Narkunienė & Aurelija Ulbinaitė, 2018. "Comparative analysis of company performance evaluation methods," Post-Print hal-02121048, HAL.
    9. James G. March & Robert I. Sutton, 1997. "Crossroads---Organizational Performance as a Dependent Variable," Organization Science, INFORMS, vol. 8(6), pages 698-706, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mihaela Brindușa TUDOSE & Valentina Diana RUSU & Silvia AVASILCĂI, 2020. "Measuring Financial Performance: Financial Ratios Vs. Economic Value Added," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 7, pages 172-188.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mihaela Brindusa Tudose & Valentina Diana Rusu & Silvia Avasilcai, 2021. "Performance Management for Growth: A Framework Based on EVA," JRFM, MDPI, vol. 14(3), pages 1-19, March.
    2. Cory Searcy, 2016. "Measuring Enterprise Sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 25(2), pages 120-133, February.
    3. Lorenzo Leto & Diletta Vito, 2023. "Il contributo dei sistemi di RM e PM alla sostenibilit? integrata: il caso B&C Speakers," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(3), pages 113-139.
    4. Francesco Polese & Carmen Gallucci & Luca Carrubbo & Rosalia Santulli, 2021. "Predictive Maintenance as a Driver for Corporate Sustainability: Evidence from a Public-Private Co-Financed R&D Project," Sustainability, MDPI, vol. 13(11), pages 1-21, May.
    5. Thaís Vieira Nunhes & Merce Bernardo & Otávio José de Oliveira, 2020. "Rethinking the Way of Doing Business: A Reframe of Management Structures for Developing Corporate Sustainability," Sustainability, MDPI, vol. 12(3), pages 1-32, February.
    6. Mihaela Brindușa TUDOSE & Valentina Diana RUSU & Silvia AVASILCĂI, 2020. "Measuring Financial Performance: Financial Ratios Vs. Economic Value Added," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 7, pages 172-188.
    7. Rizwan Ullah & Weiwei Wu, 2023. "How green-friendly practices and environmental disclosure affect the technological capability of the firm," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1276-1300, February.
    8. Godwin Okafor, 2017. "The Determinants of Firm Performance and Bribery: Evidence from Manufacturing Firms in Nigeria," International Economic Journal, Taylor & Francis Journals, vol. 31(4), pages 647-669, October.
    9. Ioana Gutu & Daniela Tatiana Agheorghiesei & Alexandru Tugui, 2023. "Assessment of a Workforce Sustainability Tool through Leadership and Digitalization," IJERPH, MDPI, vol. 20(2), pages 1-30, January.
    10. Erik G. Hansen & Stefan Schaltegger, 2018. "Sustainability Balanced Scorecards and their Architectures: Irrelevant or Misunderstood?," Journal of Business Ethics, Springer, vol. 150(4), pages 937-952, July.
    11. Fiaz Ahmad Sulehri & Saba Sharif, 2022. "The Impact of Firm Sustainability on Firm Growth: Evidence from USA," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(2), pages 1-15, August.
    12. Bat Batjargal, 2000. "Entrepreneurial Versatility, Resources and Firm Performance in Russia: A Panel Study," William Davidson Institute Working Papers Series 351, William Davidson Institute at the University of Michigan.
    13. Isabella Cattinelli & Elena Bolzoni & Carlo Barbieri & Flavio Mari & José Martin-Guerrero & Emilio Soria-Olivas & José Martinez-Martinez & Juan Gomez-Sanchis & Claudia Amato & Andrea Stopper & Emanuel, 2012. "Use of Self-Organizing Maps for Balanced Scorecard analysis to monitor the performance of dialysis clinic chains," Health Care Management Science, Springer, vol. 15(1), pages 79-90, March.
    14. Thomä, Jakob & Murray, Clare & Jerosch-Herold, Vincent & Magdanz, Janina, 2019. "Do you manage what you measure? Investor views on the question of climate actions with empirical results from the Swiss pension fund and insurance sector," LSE Research Online Documents on Economics 115100, London School of Economics and Political Science, LSE Library.
    15. Maurizio Massaro & Francesca Dal Mas & Charbel Jose Chiappetta Jabbour & Carlo Bagnoli, 2020. "Crypto‐economy and new sustainable business models: Reflections and projections using a case study analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2150-2160, September.
    16. Saeedeh Ahmadi & Saeed Khanagha & Luca Berchicci & Justin J. P. Jansen, 2017. "Are Managers Motivated to Explore in the Face of a New Technological Change? The Role of Regulatory Focus, Fit, and Complexity of Decision‐Making," Journal of Management Studies, Wiley Blackwell, vol. 54(2), pages 209-237, March.
    17. Norka Blanco-Portela & Luis R-Pertierra & Javier Benayas & Rodrigo Lozano, 2018. "Sustainability Leaders’ Perceptions on the Drivers for and the Barriers to the Integration of Sustainability in Latin American Higher Education Institutions," Sustainability, MDPI, vol. 10(8), pages 1-16, August.
    18. Broccardo, Laura & Vola, Paola & Zicari, Adrian & Alshibani, Safiya Mukhtar, 2023. "Contingency-based analysis of the drivers and obstacles to a successful sustainable business model: Seeking the uncaptured value," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    19. Misbah Haque & Imran Ali, 2016. "Uncertain Environment and Organizational Performance: The Mediating Role of Organizational Innovation," Asian Social Science, Canadian Center of Science and Education, vol. 12(9), pages 124-124, September.
    20. Holwerda, Jacob A., 2021. "Big data? Big deal: Searching for big data’s performance effects in HR," Business Horizons, Elsevier, vol. 64(4), pages 391-399.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jes:eurint:y:2019:v:6:p:335-354. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alupului Ciprian (email available below). General contact details of provider: https://edirc.repec.org/data/csjesro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.