Financial Determinants of Effectiveness of the Corporate Social Activity of Companies in Ukraine: Methods and Results of an Empirical Study
Journal Title: Бізнес Інформ - Year 2016, Vol 1, Issue
Abstract
A successful implementation of the CSA depends on solving two main tasks: 1) creation of adequate measuring tools for effectiveness of CSA, which can serve as indicators of both formation of CSR policies and the system for remuneration of managers; 2) identifying financial determinants of effectiveness of CSA, which could form basis for the development of a financial security system. To this end, a methodology for empirical researching the prerequisites and determinants in terms of development of financial system to ensure sustainable development of the Ukrainian corporations using descriptive and econometric analysis has been proposed. An author's own index of CSA effectiveness (index of sustainable development of corporations) has been developed, a methodology of its compilation has been suggested. To analyze the progress of companies in the CSA a number of criteria has been developed, which form the basis of the index. To identify financial determinants of CSA effectiveness the following indicators has been proposed: net revenues from product sales, operating profit, return on assets (ROA), return on equity (ROE), net cash flow, annual return on shares, a five-year volatility of shares, financial leverage. On the basis of an analysis of sample multitude of domestic corporations, a low level of disclosure on CSA in various aspects of sustainable development as well as poor quality of non-financial reporting by domestic companies has been revealed.
Authors and Affiliations
Irina Vasylchuk
Keywords
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