MARKET-BASED PERFORMANCE MEASURES: A SHAREHOLDER’S PERSPECTIVE
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F19%3A63523625" target="_blank" >RIV/70883521:28120/19:63523625 - isvavai.cz</a>
Result on the web
<a href="http://dokbat.utb.cz/wp-content/uploads/2020/01/DOKBAT_2019_Conference_Proceedings.pdf" target="_blank" >http://dokbat.utb.cz/wp-content/uploads/2020/01/DOKBAT_2019_Conference_Proceedings.pdf</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.7441/dokbat.2019.007" target="_blank" >10.7441/dokbat.2019.007</a>
Alternative languages
Result language
angličtina
Original language name
MARKET-BASED PERFORMANCE MEASURES: A SHAREHOLDER’S PERSPECTIVE
Original language description
The concept of performance measurement is an important construct in management and strategic management literature. It is a hotly debated topic and a favourite theme in management research. Since performance measurement is a multi-dimensional construct, there is no consensus as to the choice of independent variable in measuring performance. This article contributes to this debate by presenting the two most popular measures, Price-to-Earnings ratio and the Market-to-Book value, commonly considered as market-based performance measures of profitability from the viewpoint of shareholders. Profitability measures are used as indicators of business financial performance in a multi-dimensional performance model. To assess the financial aspect of firm’s performance, researchers generally used either accounting-based or market-based measures. The accounting-based measures are considered back-ward looking and are influenced by accounting standards and management choice of accounting methods. Market-based measures are forward looking and mostly favoured by shareholders. The underlying assumption of the market-based measures is market efficiency, which views stock price as representing the firm’s fundamental value. Market based performance measures incorporates all relevant information and thus not limited to only a single aspect of performance unlike the accounting measures. The theoretical basis for using market-based performance measures is that they reflect a firm’s financial performance more accurately compared to the accounting-based measures.
Czech name
—
Czech description
—
Classification
Type
D - Article in proceedings
CEP classification
—
OECD FORD branch
50206 - Finance
Result continuities
Project
—
Continuities
V - Vyzkumna aktivita podporovana z jinych verejnych zdroju
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
DOKBAT 2019 - 15th International Bata Conference for Ph.D. Students and Young Researchers
ISBN
978-80-7454-893-2
ISSN
—
e-ISSN
—
Number of pages
8
Pages from-to
76-83
Publisher name
Fakulta managementu a ekonomiky, UTB ve Zlíně
Place of publication
Zlín
Event location
Zlín
Event date
Nov 6, 2019
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
—