Comparative analysis of financial and non-financial performance elements of joint-stock companies

Abstract

The aim of the paper is to measure concurrence between the ranking of companies listed on the Belgrade Stock Exchange (BELEX) and their financial and non-financial performance elements, i.e. to measure to what extent these performance elements are included in the criteria for listing shares. By employing statistical/econometric methodology, an analysis including 10 companies from the BELEX15 index basket was conducted. The paper is organized in four consistent sections. The first one relates to the analysis of the criteria for listing of companies on the BELEX and the ranking that the company receives based on the mentioned conditions. The second section deals with the analysis of the financial performance elements of the mentioned companies, namely: EPS (Earnings per Share), P/E ratio (Price-Earnings ratio), P/B ratio (Price-to-Book ratio) and ROE (Return on Equity) of the company. In the third section of the paper, the non-financial performance elements which are included in the ISO 9004:2009 Self-Assessment Tool and considered key components of company's success are analyzed; these are: managing for the sustained success of a company; strategy and policy; resource management; processes management; monitoring, measurement, analysis and review; improvement, innovation and learning. In the fourth section of the paper a comparative analysis of the positions of surveyed companies was carried out based on the three main criteria set out in the preceding sections of the paper. Furthermore the correspondence between the mentioned criteria was measured.