%0 Journal Article
%T The new role of the going concern concept in corporate finance management
%A Gintaras £¿ernius
%J Perspectives of Innovations, Economics and Business
%D 2012
%I Prague Development Center, s.r.o.
%X This paper tackles different issues related to the development of the system of the objectives of a company's financial management that also includes its sustainability. Prior to the recent financial crisis the formulation of the corporate finance management objective focused only on the company¡¯s finances that were reported and measured using the company's profit and its worth growth ratios. The financial crisis has highlighted an additional aspect in corporate management, i.e., a need for the company, as an object of the owners' investment, to generate the economic benefit for a prolonged period of time. For the purpose of formulation of the corporate financial management objective it is appropriate to refer not to a single objective or a set of same-level objectives; a much more expedient approach is a creation of the so-called objective tree integrating the requirements of the entity's going concern. The present article analyses certain factors affecting the financial performance of a company, discusses different ratios facilitating the quantitative effect of the factors upon the final results, and practically applies the management by interference model with a view to ensuring the operations of the company for a sufficiently long time
%K Corporate finance
%K management objective
%K going concern
%U http://academicpublishingplatforms.com/article.php?journal=PIEB&number=12&article=1650