Use Of Financial Measures Research Articles

Special care in dentistry in France: Issues, current situation, outlook

The question of oral health care and access to it for persons with disabilities is a key public health issue. This contribution describes the general landscape of access to oral health care for persons with disabilities since Law no.2005-102 of February 11, 2005, taking a broad approach that spans initial training and continuing education in the sector, the Romain Jacob charter, and the implementation of several networks. It also provides an analysis of the use of financial measures to incentivize the recognition of overtime spent providing care for persons with disabilities. The results of this study show that: considerable progress has been made in training; the missions of disability specialists must be redefined at the departmental level to enable these professionals to play their role; the enhanced financial recompense offered for this care is a step in the right direction but is insufficient to improve access to care for persons with disabilities; and, although care networks have proliferated, their future is uncertain given the precariousness of their funding. They remain, however, a system for providing care operating in parallel to mainstream care. While definite progress has been made over the past ten years, the Handifaction barometer shows that there is still much room for improvement as regards persons with disabilities’ satisfaction with access to oral health care in France.

Adult life-course trajectories of psychological distress and economic outcomes in midlife during the COVID-19 pandemic: evidence from the 1958 and 1970 British birth cohorts

PurposeFinancial adversity in times of economic recession have been shown to have an unequal effect on individuals with prior mental health problems. This study investigated the relationship between mental health groupings across the adult life-course and change in financial situation and employment status during the COVID-19 pandemic, as well as the use of financial measures to mitigate the economic shock.MethodsUsing two nationally representative British birth cohorts, the National Child Development Study (1958) n = 17,415 and 1970 British Cohort Study n = 17,198, we identified 5 different life-course trajectories of psychological distress from adolescence to midlife which were similar but not identical across the two cohorts. We explored their relation to changes in financial and employment circumstances at different stages during the pandemic from May 2020 to March 2021, applying multinomial logistic regression and controlling for numerous early life covariates, including family socio-economic status (SES). In addition, we ran modified Poisson models with robust standard errors to identify whether different mental health trajectories were supported by government and used other methods to mitigate their financial situation.ResultsWe found that the financial circumstances of pre-pandemic trajectories of psychological distress with differential onset, severity, and chronicity across the life-course were exacerbated by the COVID-19 economic shock. The ‘stable-high’ (persistent severe symptoms) and ‘adult-onset’ (symptoms developing in 30s, but later decreasing) groups were vulnerable to job loss. Compared to pre-pandemic trajectory groupings with no, minor, or psychological distress symptoms in early adulthood, the ‘stable-high’, ‘midlife-onset’ (symptoms developing in midlife), and ‘adult-onset’ trajectory groups were more likely to seek support from the UK governments economic response package. However, trajectories with pre-pandemic psychological distress were also at greater risk of reducing consumption, dis-saving, relying on increased financial help from family and friends, and also taking payment holidays (agreements with lenders to pause mortgage, credit card or loan payments for a set period) and borrowing.ConclusionThis work highlights different trajectories of pre-pandemic psychological distress, compared to groups with no symptoms were more vulnerable to pandemic-related economic shock and job loss. By adopting unsustainable mitigating measures (borrowing and payment holidays) to support their financial circumstances during COVID-19, these mental health trajectories are at even more risk of lasting adverse impacts and future economic difficulties.

Risk Recognition Policies for the Long-Term Care Workforce during the First Year of the COVID-19 Pandemic: A Multi-Country Study

<strong>Context:</strong> The precarious work arrangements experienced by many long-term care workers have led to the creation of a “shared” workforce across residential, home, and community aging care sectors. This shared workforce was identified as a contributor to the spread of COVID-19 early in the pandemic. <strong>Objective:</strong> This analysis sought to review policy measures targeting the long-term care workforce across seven high income jurisdictions during the first year of the COVID-19 pandemic. The focus was on financial supports introduced to recognize long-term care workers for the increased risks they faced, including both (1) health risks posed by direct care provision during the pandemic and (2) economic risks associated with restrictions to multi-site work. <strong>Method:</strong> Environmental scan of publicly available policy documents and government news releases published between March 1, 2020 and March 31, 2021, across seven high income jurisdictions. <strong>Findings:</strong> While there was limited use of financial measures in the United States to compensate long-term care workers for the increased health risks they faced, these measures were widely used across Canada, as well as in Wales, Scotland, and Australia. Moreover, there was a corresponding use of financial measures to protect workers from income loss in parts of Canada, Australia and the UK. <strong>Limitations:</strong> Our analysis did not include additional policy measures such as sick pay or recruitment incentives. We also relied primarily on publicly available policy documentation. In some cases, documents had been archived or revised, making it difficult to ascertain and clarify original information and amendments. <strong>Implications:</strong> While these financial measures are temporary, they brought to light long-standing issues related to the supply of and support for workers providing care to older adults in long-term care homes.

Measuring intellectual capital with financial data.

Intellectual capital is defined as the set of intangible assets that generate value for the company. Normally, the models that measure the intellectual capital make use of investments in intangible assets, as indicators of the generation of value by the company; or are based on a holistic measure, using another focus to validate. This research proposes a new method to measure intellectual capital, reconciling the use of financial measures for the management of intellectual capital and its antecedents in triangulated indices; it also determines relationship path coefficients, between constructs developed from a general conceptual model, based on the academic and professional literature. The proposed method combines component indicators with holistic indicators using a structural equation model, allowing differentiating the components of intellectual capital from the stock of intellectual capital. The method is applied to more than 1,600 European companies from 2004 to 2015 to assess its validity, presenting the monetary value of intellectual capital in these companies. The results allow a comparison of the situation of intellectual capital in companies in different countries and industries, opening an opportunity to disclosure intellectual capital.

Performance Measurement of the Business Process Outsourcing Sector in Kenya: Balance Scorecard Approach

The aim of this study is to investigate the performance measurement of the business process outsourcing sector in Kenya using the balanced scorecard approach. The components of the approach include financial, internal processes, customers, learning and growth. The study was carried out in all the registered business process outsourcing companies in Kenya and questionnaires administered to the marketing managers of the respective companies. To analyze data, descriptive statistics and Kruskal Wallis Test were used. Descriptive statistics was used to ascertain the view of the performance of the sector by use of means and standard deviations. Kruskal Wallis Test was used to obtain the perception of the respondents on the use of the four balanced scorecard perspectives in their companies. The study established that the business process outsourcing sector in Kenya used the balanced scorecard that included both financial and non- financial measures. However, they tended to lean more on the use of financial measures. This paper, therefore, recommends the use of non- financial measures to measure performance too.

공기업 경영실적평가에서 재무지표의 이용 정도가 재정건전성에 미치는 영향

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Determinants of Value Creation in Cross-Border M&amp;As: The Case of the Software Industry

This study specifically focuses on the software market and tries to identify the sources that intensify equity investments through merger and acquisition (M&amp;A) paths. Increasing the firm size and accessing new growth opportunities is particularly significant in the software industry. Consistent with this view, this work focuses on the cross-border strategies that could be used to manage value creation processes. The results found are based on the fact that diversification of the geographic market (acquiring cross-border technology) is relevant to the positive answers given by the stock markets. Moreover, the age of the target firm strongly influences M&amp;A decisions and the younger the target firm is, the higher the possibility of creating value, but this variable increases uncertainty in the evaluation of the target firm, decreasing the purchase offers. The complementary nature between the acquiring and the target firm and the size of the investing firm influence market return and appear to be linked. These results provide empirical evidence on the use of financial measures to determine the goodness of an acquisition but, above all, they provide a new reading of the evaluation of the complementary nature between the buyer and the target firm.

An integrated model for evaluation and optimisation of business project portfolios

This paper presents an integrated model for the evaluation and probabilistic optimisation of project portfolios, integrating economic, social and environmental impacts analysis. The contribution of the proposed model lies in: 1) an extended list of criteria covering economic, social and environmental aspects; 2) use of financial measures, which are easily understood; 3) use of Monte Carlo simulation to cope with variability; 4) use of mathematical optimisation to deal with constraints and/or large amount of information. A practical test carried out in a company is reported and confirms the applicability and usefulness of the model. The integration of approaches for sustainable assessment of business projects and selection and optimisation of project portfolio is deficient in literature. Thereby, the proposed model is presented as an alternative to conduct integrated analysis and define optimal project portfolio for sustainable development in business contexts characterised by uncertainties. [Received: 26 October 2015; Revised: 26 August 2017; Revised: 1 March 2018; Accepted: 1 March 2018]

Voluntary Clawback Adoption and the Use of Financial Measures in CFO Bonus Plans

ABSTRACT Firms trade off CFOs' fiduciary duties against their decision-making duties when designing CFO bonus plans. Decreasing bonus incentives tied to financial measures benefits CFOs' fiduciary responsibilities at the expense of motivating their decision-making duties. As prior research indicates that clawbacks increase personal misreporting costs through the loss of previously awarded compensation, we examine whether clawbacks allow firms to increase incentives in CFO bonus contracts. Based on a sample of U.S. firms between 2007 and 2013, we find that clawbacks are associated with greater CFO bonus incentives. We also find the increase in incentives to be more pronounced for CFOs relative to other executives. Our results are moderated by firms' susceptibility to misreporting. The relation between clawbacks and incentives is weaker when firms experienced internal control deficiencies, have larger abnormal accruals, when CFOs are more vulnerable to pressure from CEOs, and when audit committees have less financial expertise and prestige.

Why So Many Measures of Nonprofit Financial Performance? Analyzing and Improving the Use of Financial Measures in Nonprofit Research

Financial measures provide an empirical basis from which nonprofit researchers and practicing managers can approximate organizational capacity, financial health, and performance. These measures are used in nonprofit research to predict organizational activities and funding opportunities. Yet, little empirical evidence exists to tell us what these measures assess and whether they capture underlying concepts in the way we assume. Using Internal Revenue Service (IRS) Form 990 data, this article explores the following research question: Can accounting measures be organized into theoretically intuitive and empirically defensible constructs? To answer this question, a literature review of nonprofit financial health studies and textbooks was conducted, and dimension reduction techniques were employed. The findings suggest that the answer to the research question is not as simple as expected, and we should exercise more caution in how we use financial measures in nonprofit research.

Influence of institutional pressures on performance measurement systems

Purpose Grounded in DiMaggio and Powell’s (1983) institutional isomorphism perspective of institutional theory, the purpose of this study is to examine the influence of institutional pressures on the performance measurement system (PMS) within banks and financial institutions. Design/methodology/approach A survey was used to collect data from 71 banks and financial institutions operating in Australia. Findings Four institutional pressures, the normative pressure “corporate change” and the coercive pressures “economic and financial legislation”, “socio-economic political pressures” and “banking regulations” were found to be associated with the use of multi-dimensional performance measures. In addition, the coercive pressure “economic and financial legislation” and the normative pressure “corporate change” were associated with the use of financial, internal and learning and growth performance measures. Finally, the use of internal and learning and growth measures was positively associated with the coercive force “socioeconomic-political pressures”, and the use of financial measures was associated with the coercive pressure “banking regulations”. Research limitations/implications Given the recent global financial crisis, the study offers a reference within the contemporary performance measurement literature in relation to the influence of institutional pressures on the PMS within banks and financial institutions. Originality/value While prior research has focused on manufacturing organisations, this study deepens our understanding of the institutional environment of banks and financial institutions and how specific coercive, mimetic and normative forces influence the PMS.

Performance and economic analysis of finished lambs in feedlot

This study aimed to evaluate animal performance and economic performance of feedlot crossbred lambs (½ Santa Inês+ ½ Suffolk) fed different diets based on hay from Cynodon dactylon genotypes, through the use of financial measures considering only the period of confinement, without relating it to the complete management cycle. A total of 30 intact crossbred Suffolk lambs, identified with earrings, with an average age of 90 days and an average body weight of 21.5 kg were used in this study. Diets were formulated using as treatments a standard concentrate and hay of the Cynodon dactylon genotypes Jiggs, Vaquero, Tifton 68, Coast-Cross, Tifton 85 and Russell in a 60:40 forage-to-concentrate ratio. The treatments were distributed in a randomized complete block design with five replicates. There were significant differences between diets in terms of total expenditure on food, and the highest values were obtained for the Jiggs genotype (BRL 48.96/animal). The animals fed diets based on Tifton 68 hay had a higher rate of return (2.16%) and profitability (34.63%) compared to the other diets. The use of diets based on Tifton 68 hay for feedlot lambs in the finishing phase brings higher economic returns compared to the remaining diets.

Non-financial performance measures and the BSC of multinational companies with multi-cultural environment

Purpose – The purpose of this paper is to investigate the use of financial and non-financial performance measurement practices, including the use of the balanced scorecard (BSC) and the impact of the cultural values on the use of performance measurement systems (PMSs), in multinational companies (MNCs) operating in the Middle East with a special attention to the Saudi Arabian subsidiaries. Design/methodology/approach – Data were collected using a survey mailed to 180 randomly selected Saudi manufacturing subsidiaries in different industrial cities to collect data on their PMSs including the use of the BSC. Findings – Financial measures are more widely used by most of the companies included in the sample due to the fact they are common, well known, and the most familiar performance measures in the business practice and they are more standardized measures which can be easily understood, implemented, and quantified. Moreover, the use of the non-financial measures was at a very low rate compared with the use of financial measures. The reasons were the difficulty in finding objective measures of the effect of social factors and the avoidance of any disclosure of social problems that are existed in the society. Research limitations/implications – Several variables were not included in this study such as corporate culture, use of information technology, the use of mass number of expatriates in the KSA with completely different cultural values, and several other environmental factors, which might have a significant impact on the choice of multiple performance measures. Practical implications – From a practical standpoint, this study demonstrates that increasing levels of external environmental factors and exposure to American best practices could act as forces to adapt more updated and sophisticated PMSs in the Middle East. Moreover, it will contribute to the knowledge of PMSs in the emerging countries, particularly in Middle East countries. Social implications – Social variables have significant impact on the productivity of employees and they should be incorporated into the performance indictors in objective and practical models. Originality/value – This study illustrates how MNCs in the Middle East are adapting and applying the PMS and the effect of culture on the use of non-financial measures.

Balanced Scorecard Usage and Performance of Hotels: A Study from the Tourist State of Uttarakhand, India

AbstractTourism is a major driver of economic growth and livelihood promotion in the Uttarakhand state of India. The contribution of tourism to the state gross domestic product (GDP) and employment generation is significant. The expansion of tourism inevitably brings about the development of the hotel industry. Hotels must create effective competitive strategies for survival and use a performance measurement system that meets the requirements of a changing environment. Several studies have been conducted to study the rich tourist potential of the state. However, no research studies are available regarding performance measurement practices adopted by hospitality managers in Uttarakhand for measuring the performance of their establishments. The present study examines existing performance measurement practices used by hotel managers that employ the balanced scorecard (BSC) − an innovative and comprehensive performance measurement framework for assessing the performance and progress of hotels in this mountainous state of India. The results indicate that in spite of using measures from different perspectives inherent to the original BSC, hospitality managers are not aware of the concept of BSC in a formal manner. The study reveals that hotels in Uttarakhand still focus on the use of financial measures as compared to non-financial measures for measuring performance. The study supports the link between hotel performance and BSC measures usage.

Voluntary Clawback Adoption and the Use of Financial Measures in CFO Bonus Plans

Firms trade-off CFOs’ fiduciary duties against their decision-making duties when designing CFO bonus plans. Decreasing bonus incentives tied to financial measures benefits CFOs’ fiduciary responsibilities at the expense of motivating their decision making duties. As prior research indicates that clawbacks increase personal misreporting costs through the loss of previously awarded compensation, we examine whether clawbacks allow firms to increase incentives in CFO bonus contracts. Based on a sample of U.S. firms between 2007 and 2013, we find that clawbacks are associated with greater CFO bonus incentives. We also find the increase in incentives to be more pronounced for CFOs relative to other executives. Our results are moderated by firms’ susceptibility to misreporting. The relation between clawbacks and incentives is weaker when firms experienced internal control deficiencies, have larger abnormal accruals, when CFOs are more vulnerable to pressure from CEOs, and when audit committees have less financial expertise and prestige.

Nonfinancial and financial performance measures: How do they affect employee role clarity and performance?

Two recent studies have found that comprehensive performance measurement systems comprising both financial and nonfinancial measures (e.g., balanced scorecard) are positively related to managerial performance through role clarity. It is, however, unclear if these results are from the use of financial measures or from the use of nonfinancial measures. It is also unclear if these effects are achievable by using nonfinancial measures alone. This study provides insights into prior studies' findings by distinguishing those effects arising from nonfinancial measures from those arising from financial measures. Based on a sample of 121 managers, the results indicate that nonfinancial measures, by themselves, significantly influence managerial performance through role clarity. More importantly, they also indicate that the effect of nonfinancial measures on role clarity is substantially stronger than that through financial measures.

Performance measures and short‐termism: An exploratory study

We examine the relationship between performance measurement systems and short‐termism. Hypotheses are tested on a sample of senior managers drawn from a major telecommunications company to determine the extent to which the diagnostic and interactive uses of financial and non‐financial measures give rise to short‐termism. We find no evidence to suggest that the use of financial measures, either diagnostically or interactively, leads to short‐term behaviour. In contrast, we find a significant association between the use of non‐financial measures and short‐termism. Results suggest that the diagnostic use of non‐financial measures leads managers to make inter‐temporal trade‐off choices that prioritise the short term to the detriment of the long term, while we find interactive use is negatively associated with short‐termism. We find an imbalance in favour of the diagnostic use over the interactive use of non‐financial performance measures is associated with short‐termism. Overall, findings highlight the importance of considering the specific use of performance measures in determining the causes of short‐termism.

Performance Measures and Short-Termism: An Exploratory Study

We examine the relationship between performance measurement systems and short-termism. Hypotheses are tested on a sample of senior managers drawn from a major telecommunications company to determine the extent to which the diagnostic and interactive uses of financial and non-financial measures give rise to short-termism. We find no evidence to suggest that the use of financial measures, either diagnostically or interactively, leads to short-term behaviour. In contrast, we find a significant association between the use of non-financial measures and short-termism. Results suggest that the diagnostic use of non-financial measures leads managers to make inter-temporal trade-off choices that prioritise the short term to the detriment of the long term, while we find interactive use is negatively associated with short-termism. We find an imbalance in favour of the diagnostic use over the interactive use of non-financial performance measures is associated with short-termism. Overall, findings highlight the importance of considering the specific use of performance measures in determining the causes of short-termism.

Valuing biotechnology companies: Does classification by technology type help?

This paper explores whether conventional financial ratios can be used for portfolio construction in the biotechnology sector after the companies are classified into groups based on technology platforms such as DNA, biochemistry and bioprocessing technologies. We find some success in the use of financial measures after the classification is made indicating that they do a better job when comparing like firms. Appropriate risk adjustment is, however, critical to determining if superior performance is attained. This remains a challenge due to the difficulties in finding appropriate risk measures for the sector.

Competitive strategy and performance measurement in the Malaysian context

PurposeThe purpose of this paper is to contribute to a better understanding of competitive strategy and performance measurement in the Malaysian context by applying a modified version of Conant et al's generic strategy scale and categorizing Malaysian firms along the Miles and Snow business strategy typology.Design/methodology/approachCompetitive strategy and performance measurement were assessed via survey. A total of 975 firms were randomly selected from the directory of Federation of Malaysian Manufacturers (FMM) as listed in 2003. Overall, 133 surveys were returned, 120 of which were usable for analysis.FindingsResults suggest that Malaysian firms view competitive strategy differently and are more likely than their Western counterparts to emphasize the use of financial measures of organizational performance. Findings also highlight the difficulties faced when Western measurement scales are employed in non‐Western emerging nations.Research limitations/implicationsBecause greater emphasis was placed on financial rather than non‐financial measures, results indicate a statistically significant different improvement only in sales growth and ROI performance among the three strategy categories. Strategy researchers should focus their attention to the use of multiple performance measures in assessing firm's performance as shown by the significant different in the use of customer satisfaction and loyalty measures, as well as employee satisfaction and training measures.Originality/valueThese findings hold relevance for executives responsible for the formulation and implementation of business strategy. A better understanding of the relationship between business strategy and performance measures using the BSC perspectives of measures has been provided. The study provides some useful insights into the role of performance measures. In addition, this study conveys the message to top managers and designers of performance measurement tools–most notably the balanced scorecard– should pay particular attention to non‐financial performance measures in implementing their organization's strategy.