IDEAS home Printed from
   My bibliography  Save this article

Financial Analysis Versus Extra-Financial Analysis In Measuring The Performance Of The Sustainable Organization


  • Marilena Mironiuc

    ("Al.I. Cuza" University of Iasi)


The internationalization of economy through business delocalization, crises, and turbulences of financial markets, the change of the consumers' profile caused by the emergence of the segment of consumers sensitive to ecological topics, the dematerialization of economy, are some of the phenomena that have determined new visions on economical development at worldwide level. The statement of the principles of sustainable development has nowadays subjected organizations to the critical eye of a society ever more careful about ethical values. Specialized literature mentions the declared bankruptcy of "organizational government" mechanisms based exclusively on strictly financial values, and the necessity to "govern companies" through a multi-partner approach, by reconciling the interests of all the stakeholders, based on social responsibility and on pertinent communication that integrates financial, social, and environmental information. The communication requirements that appeared following these changes make the measurement of organizational performance not exclusively related to the criteria of financial self-analysis, but performed in a global manner, through both financial and non-financial criteria, with the latter derived from possessing immaterial assets and from the social awareness of companies. Therefore, financial analysis is subject to a process of renewal, through the emergence and integration of a new component, the extra-financial analysis. Together, these two types of analysis will be able to provide the financial community answers related to: the economical impact of environmental and social elements, risk factors, social and environmental opportunities, and the causes of the difference between the market value and the economic value of an organization (its goodwill). The difficulty in performing an extrafinancial analysis comes from the lack of homogeneity of the practice in the field, from the fact that the reporting system of sustainable development remains a voluntary approach, from the absence of international norms regarding socially responsible investments, and from the existence of extra-financial indicators that are very poorly normalized.

Suggested Citation

  • Marilena Mironiuc, 2009. "Financial Analysis Versus Extra-Financial Analysis In Measuring The Performance Of The Sustainable Organization," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 5(05(534)(s), pages 149-164, May.
  • Handle: RePEc:agr:journl:v:05(534)(supplement):y:2009:i:05(534)(supplement):p:149-164

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Elena Ionașcu & Marilena Mironiuc & Ion Anghel & Maria Carmen Huian, 2020. "The Involvement of Real Estate Companies in Sustainable Development—An Analysis from the SDGs Reporting Perspective," Sustainability, MDPI, Open Access Journal, vol. 12(3), pages 1-1, January.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:05(534)(supplement):y:2009:i:05(534)(supplement):p:149-164. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marin Dinu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.