Procedia Economics and Finance

Procedia Economics and Finance 32 ( 2015 ) 338 – 344

2212-5671 © 2015 The Authors. Published by Elsevier B.V. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Selection and peer-review under responsibility of Asociatia Grupul Roman de Cercetari in Finante Corporatiste doi: 10.1016/S2212-5671(15)01402-1

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Emerging Markets Queries in Finance and Business

Repeated Measures Analysis on Determinant Factors of Enterprise Value

Gioacasi Diana*

Alexandru Ioan Cuza University, Iasi, Romania

Abstract

Enterprise value is the result of interaction between financial and non-financial factors. Financial factors represent important resources in the production of goods but their contribution to enterprise has decreased with the development of the knowledge-based economy. Acceptance of nonfinancial factors as elements generating future benefits imposed the application of European policies concerning non-financial reporting for multinationals. The objective of this article is the variation analysis of the most significant financial and nonfinancial factors of enterprise value. The analyzed sample consists of 400 European multinationals for the period 2009-2012. The statistical tool used was SPSS 20 and the work method was repeated measures ANOVA. The results showed several evolutions of factors analyzed, providing support for the development of factors that increase enterprise value. © 2015 Authors. Published by Elsevier B.V. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/3.0/). Selection and peer-review under responsibility of the Emerging Markets Query in Finance and Business local organization. Keywords: nonfinancial factors, repeated-measures ANOVA, market value, book value

* Corresponding author. Tel.: 0040-745-390-042; E-mail address: dianagioacasi@yahoo.com

© 2015 The Authors. Published by Elsevier B.V. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Selection and peer-review under responsibility of Asociatia Grupul Roman de Cercetari in Finante Corporatiste

339 Gioacasi Diana / Procedia Economics and Finance 32 ( 2015 ) 338 – 344

1. Introduction

In the knowledge-based economy, non-financial factors are elements which create value, complementary to the financial and tangible capital. Today it is widely accepted by investors and managers that multinationals incorporates inimitable and non-substitutable resources with significant implications on the development of competitive advantages.

Both the role of multinational corporations in developing and effectively managing non-financial factors but also the lack of information released to the investors on these resources imposed the application of a European legislation on non-financial reporting.

2. Review of prior literature

In the knowledge-based economy, the company’s market value is calculated by the following algorithm: Market value (MV) = Book value (BV) + nonfinancial factors (IC), where MV represents the total value of the issued shares of the company, being equal to the share price times the number of shares outstanding, BV is the excess of all assets and debts of an entity on all their debts and IC – assembly of non-financial factors impacting enterprise results.