The concept of financial evaluation of the fundamental and stakeholder value added of enterprises

Oleksandr Davydov
PhD in Economics, Associate Professor, Department of Finance, Banking and Insurance, V. N. Karazin Kharkiv National University, Ukraine, e-mail: a.dav@ukr.net, ORCID ID: http://orcid.org/0000-0003-0408-7097

Cite this article:

Davydov, O. (2018). The concept of financial evaluation of the fundamental and stakeholder value added of enterprises. Ed.: M. Zveryakov (ed.-in-ch.) and others [Kontseptsiia finansovoi otsinky fundamentalno-steikholderskoi dodanoi vartosti pidpryiemstv; za red.: М. I. Zvіeriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 4 (68), pp. 89–101.

Abstract

The article considers the development questions of the financial evaluation concept of enterprises fundamental and stakeholder value added from the standpoint of financial result of their activity determining. The conceptual approaches to the value of financial result determining and the possibility of their using for the financial evaluation of enterprises fundamental and stakeholder value added are analyzed. It is proved that the problem of financial evaluation of enterprises fundamental and stakeholder value added can be solved by the financial result determining on the basis of corresponding income and expenditure comparison. The conceptual vision of financial evaluation of the fundamental and stakeholder value added as a process of the financial result determining in the form of the difference between the income received and the associated costs, which quantitatively characterizes an enterprise’s additional financial benefits and its key stakeholders, is presented. The transformation of income and costs content in the financial result determining in the financial evaluation concept of enterprises fundamental and stakeholder value added is investigated. A structural-logical model for the financial evaluation concept formation of enterprises fundamental stakeholder value-added was built. A conceptual interpretation of enterprises fundamental and stakeholder value added indicator as a strategic financial result is proposed. It is substantiated that the strategic financial result in the financial evaluation concept of fundamental and stakeholder added value is defined as the difference between an enterprise’s income and non-strategic explicit costs and implicit costs. The content and qualitative characteristics of the financial evaluation concept of enterprises fundamentally-stakeholder value added are disclosed based on the strategic financial result definition.

Keywords

fundamental and stakeholder value added; financial evaluation; concept; financial result; net profit; current financial result; strategic financial result; incomes; expenses; strategic explicit expenses; non-strategic explicit expenses; implicit expenses; financial benefits; enterprise; stakeholders.

JEL classification: G300; G320; DOI: https://doi.org/10.33987/vsed.4(68).2018.89-101

UD classification: 658.14/.17:005.585

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