Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries
The recent COVID-19 pandemic has raised various concerns related to firms’ financial vulnerabilities and resilience. The best way to achieve financial resilience is to identify drivers of sustainable economic development, mainly resumed to strategies designed aiming for shareholders’ value creation....
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Chamber of Financial Auditors of Romania
2023-02-01
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| Series: | Audit Financiar |
| Subjects: | |
| Online Access: | http://revista.cafr.ro/temp/Article_9716.pdf |
| _version_ | 1797903837486383104 |
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| author | Ovidiu Constantin BUNGET Alin-Constantin DUMITRESCU Valentin BURCA Oana BOGDAN |
| author_facet | Ovidiu Constantin BUNGET Alin-Constantin DUMITRESCU Valentin BURCA Oana BOGDAN |
| author_sort | Ovidiu Constantin BUNGET |
| collection | DOAJ |
| description | The recent COVID-19 pandemic has raised various concerns related to firms’ financial vulnerabilities and resilience. The best way to achieve financial resilience is to identify drivers of sustainable economic development, mainly resumed to strategies designed aiming for shareholders’ value creation. The way firms’ resources are allocated indicate the premises for reaching the potential of value creation. This study provides a general picture of firms’ capacity to create value add. For this purpose, was performed a factorial analysis, considering a DuPont model. The analysis is performed on a sample of firms originating from well-developed European economies, considering a four-based DuPont factorial model analysis. For a better understanding of the contribution of each financial ratio of the DuPont financial analysis model, a CHAID decision tree was estimated. The results show generalized effects on the calculated economic value-added indicator, no matter the country firms considered in the analysis are originated from, or the industry the operate in. However, in 2020, most of the firms have reported significantly better results in terms of economic value-added, so, an essential part of the discussion is related to the impact of savings made on the cost of the economic capital. |
| first_indexed | 2024-04-10T09:38:35Z |
| format | Article |
| id | doaj.art-5b05e8f37fa34089aa6d47b7792f917e |
| institution | Directory Open Access Journal |
| issn | 1583-5812 1844-8801 |
| language | English |
| last_indexed | 2024-04-10T09:38:35Z |
| publishDate | 2023-02-01 |
| publisher | Chamber of Financial Auditors of Romania |
| record_format | Article |
| series | Audit Financiar |
| spelling | doaj.art-5b05e8f37fa34089aa6d47b7792f917e2023-02-17T13:55:25ZengChamber of Financial Auditors of RomaniaAudit Financiar1583-58121844-88012023-02-01XXI16913815010.20869/AUDITF/2023/169/003Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed CountriesOvidiu Constantin BUNGET0Alin-Constantin DUMITRESCU1Valentin BURCA2Oana BOGDAN3West University of Timisoara, RomaniaWest University of Timisoara, RomaniaWest University of Timisoara, RomaniaWest University of Timisoara, RomaniaThe recent COVID-19 pandemic has raised various concerns related to firms’ financial vulnerabilities and resilience. The best way to achieve financial resilience is to identify drivers of sustainable economic development, mainly resumed to strategies designed aiming for shareholders’ value creation. The way firms’ resources are allocated indicate the premises for reaching the potential of value creation. This study provides a general picture of firms’ capacity to create value add. For this purpose, was performed a factorial analysis, considering a DuPont model. The analysis is performed on a sample of firms originating from well-developed European economies, considering a four-based DuPont factorial model analysis. For a better understanding of the contribution of each financial ratio of the DuPont financial analysis model, a CHAID decision tree was estimated. The results show generalized effects on the calculated economic value-added indicator, no matter the country firms considered in the analysis are originated from, or the industry the operate in. However, in 2020, most of the firms have reported significantly better results in terms of economic value-added, so, an essential part of the discussion is related to the impact of savings made on the cost of the economic capital.http://revista.cafr.ro/temp/Article_9716.pdfeconomic value-addeddupont analysiscost of capitalresiliencecovid-19 |
| spellingShingle | Ovidiu Constantin BUNGET Alin-Constantin DUMITRESCU Valentin BURCA Oana BOGDAN Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries Audit Financiar economic value-added dupont analysis cost of capital resilience covid-19 |
| title | Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries |
| title_full | Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries |
| title_fullStr | Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries |
| title_full_unstemmed | Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries |
| title_short | Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries |
| title_sort | financial implications of covid 19 pandemic an empirical dupont analysis on economic value added reported by european developed countries |
| topic | economic value-added dupont analysis cost of capital resilience covid-19 |
| url | http://revista.cafr.ro/temp/Article_9716.pdf |
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