A Comparative Analysis of Modern Performance Methods in Economic Practice

Abstract

The main objective of this paper was to analyse the performance and efficiency development of the Slovakia's spa sector over the years 2013-2017 by applying the selected modern methods of business performance evaluation-the Economic Value Added, the Return On Net Assets, the Creditworthy Model, the Simplex Linear Programming Method and examine whether the application of these modern models provides an identical view of the financial performance of the sector surveyed. The intention of the paper was also to reveal statistically significant interconnections between the key EVA indicator and other modern methods. In the case of confirmation of a strong correlation we focused on evaluation the degree of identity with the results of above-mentioned applied methods. Despite the fact that these models evaluate performance on the basis of different input data and indicators, year 2015 was identically identified as the best-performing one, vice-versa, the worst financial performance of enterprises was recorded in 2016 within the application of all methods. At the significance level of p < 0.05, a statistically significant correlation between all pairs of the analysed methods was revealed. However, the strongest positive correlation with the Economic Value Added was confirmed in the case of Simplex Method of Linear Programming (= 0.536842). This result was also confirmed by the identical assessment of the performance and efficiency development in individual years. Results of the study pointed to close interconnection between the dimension of performance (the EVA indicator) and efficiency (the Simplex Method of Linear Programming), which will be integrated into a new designed Enterprise Performance Model (EPM).

Performance Evaluation Model of Romanian Manufacturing Listed Companies by Fuzzy Ahp and Topsis

“…Value added indicators a) Economic value added (EVA) is a model of performance measurement of the entity designed by Stewart (1991) and represents practically, the operational profit from which the opportunity cost of the entire invested capital is deducted, representing the measure of the real economic profit obtained by the enterprise. EVA is not just a simple measure of performance but can be adopted to decentralize the management decision (Cabinova et al, 2018). The EVA calculation relationship proposed by Stewart (1991) is: EVA = Net operating profit after taxes -Cost of invested capital.…”

Process Model of the Economic Efficiency of the Financial Administration of an EU Member State

“…the system of the distribution of local tax offices is not flexible enough because it does not enable adjustments to the allocation of the main organizational units to the needs of the taxpayers [4,16,27]; BOTD have become an administrative level of management within the current system of management, and for quite some time it has been clear that there is a need to concentrate the performance of certain processes (such as book-keeping, salaries) because these are unnecessarily split between TDSR and BOTD, which therefore increases the intensity of the administration and communications (e.g. demand excessive administration and communications) [5,17];…”

An Integrated Approach to the Enterprises’ Business Efficiency Assessment

“…Scientists of the first direction, for example, Bogdan and Sava (2018), Dragan, Berher, and Pustovit (2018), Levkina and Petrenko (2019), Prdic, Kuzman and Damjanovic (2019), in their works focus on the impact of the external environment on the efficiency of the enterprise, primarily the market situation and adaptation of marketing management. Scientists of the second direction of research of business efficiency are engaged in methodological support of its assessment, in particular: a comparative analysis of modern assessment methods (Cabinova et al, 2018); the introduction of non-financial indicators into the system for analyzing the business efficiency of small and medium-sized enterprises (Dobrovic, Lambovska, Gallo, Timkova, 2018); the use of matric methods in assessing and forecasting the business efficiency of small and medium-sized enterprises to form the prerequisites for the formation of their international competitiveness (Landika, Sredojevic, Jakupovic, 2018); the introduction of integral assessment into the management system of the sustainable development (Sokil, Zhuk, Laszlo, 2018). The third approach is to study the impact of automation on business efficiency and the introduction of IT in the system of accounting, analysis, and auditing, it is revealed in the works of D. Kim andS.…”

“…Choi (2018), Vallisova, Cerna andHinke (2018), Rahmatullin and Guzelbaeva, (2019), L.-H. Ma, J.-C. Hsieh and Y.-H. Chiu (2020). The fourth approach is related to the applied aspects of business efficiency assessment, which are disclosed in the works of Mann and Bilyk (2017), Li, Liu, Zhu and Zhang (2018), Prokopenko and Kornatowski (2018), Tambunan (2019), Gutierrez-Fernandez and Fernandez-Torres (2020). Despite the significant amount of scientific research on business efficiency assessment, the problem of implementing an integrated approach is insufficiently studied.…”