Currently, a more significant added value is created by intellectual rather than physical capital; yet, according to the current standards of accounting, only a minor segment of intellectual capital is presented in financial accounts of enterprises as it usually does not satisfy one of the criteria of property recognition in financial accounting, namely reliable valuation. As a result, there is an increasing demand for novel methods of valuation, enabling enterprises to establish reliably the value of intellectual capital or its specific segments of a given enterprise. A number of scholars have dealt with the methods of intellectual capital valuation. However, their works analyze and classify different methods of intellectual capital valuation, and different criteria of classification are employed; hence, there is no universally accepted opinion on the issue. That is why the a i m of this research was to generalize a scheme of methods of intellectual capital valuation. The main m e t h o d s applied in the present study are the synthesis and generalization of academic writings, including content analysis. The results of the research and its conclusions are based on the analysis of academic investigations conducted by various authors and the resulting publications. R e s u l t s . The article generalizes the methods of intellectual capital valuation, suggested by a number of scholars, provides comparisons, reveals the multiplicity of the methods, and highlights the unlimited research of the academic field. Besides, the main classifications of methods of intellectual capital valuation are provided, and the applied criteria are defined. C o n c l u s i o n s . It was established that more than sixty different methods for the valuation of the intellectual capital of an enterprise are available. The results of the research show that these methods are classified according to the four following features. Correspondingly, a classification scheme of intellectual capital valuation methods has been developed. It has been established that most methods of intellectual capital valuation are based on scorecard, they assess specific components; of intellectual capital and in the process of valuation do not employ monetary units of measurement. Tis reveals a lack of the studies that focus on the financial aspect of intellectual capital valuation methods.
Climate change and sustainable development challenges have significant impact on business strategies. Corporate social responsibility (CSR) is becoming more and more integral to a business's strategy, its values, and its daily life cycle. Energy sector is under increasing pressure from society due to its huge environmental footprint and social importance. As environmental expectations increase, the energy sector must adapt to this, taking into account social‐environmental issues and finding new solutions, which will undoubtedly have an impact on its financial performance. There are limited number of studies dealing with the impact of CSR initiatives on financial performance of energy companies. The paper aims to examine the impact of CSR activities on companies' financial performance in the Lithuanian energy sector. The new method of CSR performance assessment of energy companies was developed and applied in this case study. The relevant financial performance indicators were selected to measure the impact of CSR on financial performance of energy companies. The results of the study, which examined nine Lithuanian energy companies, showed the dominating neutral relationship between CSR and financial performance during 2017–2020 period.
Many businesses today face enormous competition on both national and international levels. Companies are increasingly looking for realizing the benefits of shared service centers. A new way of organizing back office functions is being implemented across companies worldwide. This novelty called shared services has taken over as the most discussed topic in the last fifteen years and it is likely to stay with us for some time to come. It is advisable to explore a shared service center and to find out its benefits. Research methodology was a single case study and literature analysis. The shared service center conception enables the understanding of main focused areas to be taken in the consideration before migrating main business operations. A clear view has to be given to either outsourcing operations or establishing a shared service center. Prime targets depend of corporate objectives, risk assessment, and potential return on investment (ROI). ROI was calculated based on authentic shared service center figures. Bergeron (2003) presents a different way to calculate ROI. He notes that return can be taken as a profit or income figure. And that makes sense as at the beginning of implementation a shared service center works with none or small level of profit. Research has shown the evidence about the importance of the main factors that influence the choice to establish a shared service center. And the research has not agreed with the theoretical argument that the reduction of cost is the most important driver before establishing a shared service center as there are many more not less important drivers for a shared service center creation. The main keys to success regarding the shared service center 'X' evidence, in order of importance, are increased business value, cost savings, controls and continuity, customer service, and high quality.
Risk disclosures contribute to financial stability by providing stakeholders with a better understanding of companies’ risk exposures and risk management practices. Presently, corporate risk has been accelerated by the COVID-19 pandemic, and the level of disclosure varies across industries, companies, and organizations. Due to the strategic importance of the energy industry, the paper aims to assess COVID-19-related risk disclosure in the biggest electricity companies in Central and Eastern European countries, and to identify the main determinants of the disclosure. For this purpose, risk disclosure was assessed based on publicly available data disclosed by the 10 biggest public electricity companies operating in this region. Our findings indicate that factors such as the company’s size, leverage, and profitability do not significantly affect COVID-19-related risk disclosure in financial reports; nevertheless, COVID-19 risk disclosure in non-financial reports is significantly correlated with the company’s assets and revenues. Moreover, there is a significantly strong positive relationship between the scope of COVID-19-related risk disclosure in the management reports and the number of women on the company’s management board. COVID-19-related risk disclosure in management board’s reports is significantly higher than disclosure in non-financial reports and explanatory notes of financial statements. Our results suggest that risk disclosure is needed to mitigate information asymmetry, especially in pandemic situations.
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