Can a nominal financial result and a nominal value of return on equity constitute a base for an assessment of effectiveness? Testing a research hypothesis
by Justyna Franc-Dabrowska
International Journal of Electronic Finance (IJEF), Vol. 2, No. 3, 2008

Abstract: The conducted researches indicate explicitly that the assessment of the enterprise on the basis of the nominal value of the financial result and the nominal return on equity can lead to false financial decisions. In economies characterised by high inflation rates, financial results and the return on equity should not be treated as indisputable criteria of the financial situation of companies. An increase in profit driven by inflation should be considered as well; in some extreme situations, the division of such inflationary profit may lead to bankruptcy. This research is the first of this kind of analysis of agricultural companies in Poland.

Online publication date: Wed, 01-Oct-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Electronic Finance (IJEF):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com