THE IMPACT OF NON-FINANCIAL PERFORMANCE FACTORS ON THE VALUE OF THE COMPANY
THE IMPACT OF NON-FINANCIAL PERFORMANCE FACTORS ON THE VALUE OF THE COMPANY

Author(s): Camelia Cătălina Mihalciuc, Maria Grosu
Subject(s): Business Economy / Management, Accounting - Business Administration, Socio-Economic Research
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: company value; value creation system; sustainability; sustainable company; non-financial factors;
Summary/Abstract: Performance is one of the main indicators that explain the level of development of a company. Also, performance is one of the most important variables and will always remain a fairly discussed and constantly evolving topic. Performance has evolved towards a global approach that includes certain financial and non-financial factors with an impact on the value of a company that refers to elements of social responsibility. Non-financial indicators are considered to be more forward-looking, better able to predict future performance, more suitable for measuring intangible assets and less likely to be manipulated than financial values. The performance measurement system, including non-financial indicators, provides a more comprehensive picture of performance factors as it measures areas of performance beyond financial results. When we refer to non-financial performance, it refers to the result of a company's efforts in terms of customer satisfaction and loyalty, working conditions and employee satisfaction /retention, product /service quality, overall company quality, market share, productivity and innovation, as well as environmental and social issues. Thus, a company that is sustainable will have to focus on those sustainable business practices based on the above mentioned aspects, which will contribute to the creation of long-term value, value of the company brought by social, environmental and economic factors. The proposed objective of this paper was to highlight the importance of non-financial performance factors in the sustainable value creation system of companies and their analysis based on a representative sample of companies in the financial industry listed on the BSE, an investigation of the situation of the companies in this field of activity involved in the objectives of sustainable development is also carried out.

• Details
• Contents