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Study Regarding Companies Performance Measurement Through Non-Financial Indicators – The Case Of Airline Industry

Author

Listed:
  • Radu-Dan TURCU

    (Bucharest University of Economic Studies)

  • Mihaela TURTUREA

    (Bucharest University of Economic Studies)

Abstract

The fact that financial information alone is insufficient in assessing a company’s performance is more and more debated. . The present paper aims to analyze the relation between the changes in companies’ market value and selected financial and non-financial indicators for the airline industry. The main aim of this study is to analyze the value relevance of non-financial information in assessing a company’s performance by reference to the airline industry. The results reveal that non-financial indicators “load factor”, “available seat kilometers” and the financial measures “pretax return on assets”,“curent ratio”, ”debt-to-equity ratio” and ”sales growth” are valuable in explaining the stock price evolution.

Suggested Citation

  • Radu-Dan TURCU & Mihaela TURTUREA, 2015. "Study Regarding Companies Performance Measurement Through Non-Financial Indicators – The Case Of Airline Industry," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 6, pages 117-122, December.
    • Handle: RePEc:cmj:networ:y:2015:i:5:p:117-122
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    References listed on IDEAS

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    1. Stephen L. Liedtka, 2002. "The Information Content of Nonfinancial Performance Measures in the Airline Industry," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(7&8), pages 1105-1121.
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    3. Ahsan Habib, 2010. "Value relevance of alternative accounting performance measures: Australian evidence," Accounting Research Journal, Emerald Group Publishing Limited, vol. 23(2), pages 190-212, September.
    4. Francesco Dainelli & Francesco Giunta, 2011. "The value relevance of non-financial performance indicators: new cues from the European fashion industry," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2011(Suppl. 3), pages 81-102.
    5. Riley, Richard Jr. & Pearson, Timothy A. & Trompeter, Greg, 2003. "The value relevance of non-financial performance variables and accounting information: the case of the airline industry," Journal of Accounting and Public Policy, Elsevier, vol. 22(3), pages 231-254.
    6. Nicky J. Welton & Howard H. Z. Thom, 2015. "Value of Information," Medical Decision Making, , vol. 35(5), pages 564-566, July.
    7. Stephen L. Liedtka, 2002. "The Information Content of Nonfinancial Performance Measures in the Airline Industry," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(7‐8), pages 1105-1121.
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    More about this item

    Keywords

    Non-financial indicators; Financial performance;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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