Accounting for Sustainability: Frameworks for the Aggregation of Financial and Non-financial Metrics

2019 ◽  
pp. 83-109 ◽  
Author(s):  
Satyajit Bose ◽  
Guo Dong ◽  
Anne Simpson
Keyword(s):  
Financial Metrics

Growing Pains at Groupon

2013 ◽  
Vol 29 (1) ◽  
pp. 229-245 ◽  
Author(s):  
Saurav K. Dutta ◽  
Dennis H. Caplan ◽  
David J. Marcinko
Keyword(s):  
Financial Reporting ◽  
Intrinsic Value ◽  
Securities And Exchange Commission ◽  
Internal Controls ◽  
Revenue Recognition ◽  
Material Weakness ◽  
Going Public ◽  
Right Of Return ◽  
Growing Pains ◽  
Financial Metrics

ABSTRACT On November 4, 2011, Groupon Inc. went public with an initial market capitalization of $13 billion. The business was formed a couple of years earlier as an offshoot of “The Point.” The business grew rapidly and increased its reported revenue from $14.5 million in 2009 to $1.6 billion in 2011. Soon after going public, prior to its announcement of its first-quarter results, the company's auditors required Groupon to disclose a material weakness in its internal controls over financial reporting that impacted its disclosures on revenue and its estimation of returns. This case uses Groupon to motivate discussion of financial reporting issues in e-commerce businesses. Specifically, the case focuses on (1) revenue recognition practices for “agency” type e-commerce businesses, (2) accounting for sales with a right of return for new products, and (3) use of alternative financial metrics to better convey the intrinsic value of a business. The case requires students to critically read, analyze, and apply authoritative accounting guidance, and to read and analyze communications between the Securities and Exchange Commission (SEC) and the registrant.

Why do state-owned utilities become subject to financial logics? The case of energy distribution in Flanders

2021 ◽  
pp. 102452942110259
Author(s):  
Laura Deruytter ◽  
Griet Juwet ◽  
David Bassens
Keyword(s):  
Investment Fund ◽  
Market Making ◽  
Chinese Investment ◽  
Causal Mechanisms ◽  
Financial Metrics ◽  
Return On Capital ◽  
Owned Company ◽  
Financial Equity ◽  
Energy Grid ◽  
Regulatory Models

According to political economists, the state’s governance of infrastructure is becoming prone to processes of financialization. To date, however, research on how state owners of infrastructure enable and react to the entry of financial logics into such domains remains limited. This paper mobilizes the case of Eandis, a Flemish energy grid company, as a typical case to examine the causal mechanisms involved when state-owned utilities become subject to financial logics. During the 2000s, Flemish municipalities increased their ownership of Eandis, while the company deepened its debt exposure to optimize return on capital. In 2016, Eandis aimed to attract private financial equity and selected a Chinese investment fund as a potential co-shareholder. Although this buy-in was blocked, the conditions under which the state-owned company became increasingly entangled with financial markets remain unchanged and warrant a deeper examination. To explain this trajectory, we identify two causal mechanisms in the fields of market-making and ownership strategies by the multiscalar state. First, we show how regulatory models caused Eandis to focus on financial metrics such as credit ratings, subjecting management to financial market disciplines. Second, we find that budgetary constraints, combined with top-down utility governance, have made municipalities dependent on financial returns on utilities. The interaction between market-making and financial ownership strategies institutionalizes a financialized gridlock, in which municipal shareholders’ interests conflict with the need for low consumer fees and green grid investment. We argue that reforming the regulatory framework and strengthening fiscal solidarity across state layers would allow states to develop non-financialized strategies.

Impact of cellulase production on environmental and financial metrics for lignocellulosic ethanol

2013 ◽  
Vol 7 (3) ◽  
pp. 303-313 ◽  
Author(s):  
Yan Hong ◽  
Abdul-Sattar Nizami ◽  
Mohammad Pour Bafrani ◽  
Bradley A Saville ◽  
Heather L MacLean
Keyword(s):  
Cellulase Production ◽  
Lignocellulosic Ethanol ◽  
Financial Metrics

scholarly journals ESG disclosure patterns in the Baltics

2020 ◽  
Author(s):  
Ilze Zumente ◽  
Nataļja Lāce ◽  
Jūlija Bistrova
Keyword(s):  
Content Analysis ◽  
Statistical Analysis ◽  
Stock Exchange ◽  
Financial Disclosure ◽  
Social Dimensions ◽  
Key Characteristics ◽  
Wide Range ◽  
Financial Metrics ◽  
The Baltic ◽  
Disclosure Patterns

The goal of this article is to provide evidence on the volume of ESG disclosures of 34 companies listed on the NASDAQ Baltic stock exchange. It provides a broad view of the non-financial disclosure thoroughness and offers conclusions on the key characteristics of the Baltic listed companies in terms of ESG. By performing content analysis of the publicly available reports based on 106 ESG criteria and statistical analysis of the retrieved data, the disclosure patterns across reporting dimensions, industries, and company characteristics are analyzed. Authors find a wide range (8% to 67%) ESG transparency scores with an average of 41%. On aggregate, governance and social dimensions are reported better (49% and 44%) than environmental (24%). Correlation analysis was performed to test the correlation between ESG and selected financial metrics revealing that the ESG disclosure score correlates with the firm’s market capitalization.

Financial Metrics, Management, and Budgeting for Membership

2016 ◽  
pp. 231-249
Author(s):  
Susanne Connors Bowman
Keyword(s):  
Financial Metrics

The Life Cycle Model of Cyber-economics

2020 ◽  
Vol 8 (12) ◽  
pp. 63-72
Author(s):  
Srinivas Nowduri
Keyword(s):  
Economic Growth ◽  
Life Cycle ◽  
Behavioral Economics ◽  
Research Work ◽  
Life Cycle Model ◽  
Cycle Model ◽  
Business World ◽  
Exponential Increase ◽  
Financial Metrics

The exponential increase in modern technological advancements within the business world, is impacting every national economy from different directions/perspectives. This research work focuses on main issues behind cyber economics along with cyber-economic values; based on cyber events and their associated financial damages. It also made a comparative study between cyber and financial metrics, based on a professional look at cybersecurity in modern digital firms. Then it emphasizes on the role of applied and behavioral economics, in digital forms. Finally propose a model for cyber economic growth vital for modern digital firms

Volatility of Financial Metrics: Important Data for Contingent Consideration Valuations

2021 ◽  
Vol 40 (3) ◽  
pp. 80-96
Author(s):  
Vicentiu Covrig ◽  
Daniel McConaughy ◽  
Adam Newman ◽  
Pavan Kumar Nadiminti ◽  
Mary Ann K. Travers
Keyword(s):  
Growth Rate ◽  
Statistical Analysis ◽  
Firm Size ◽  
Common Belief ◽  
Net Income ◽  
Important Data ◽  
Business Valuation ◽  
Financial Metrics ◽  
Detailed Statistical Analysis ◽  
Selection Of

This article presents the first detailed statistical analysis of the volatilities of various commonly encountered financial metrics used in contingent consideration (and earn-out) agreements. The valuation of contingent consideration using an option-based methodology and non-equity volatilities is becoming more common in business valuation. We provide clear evidence that the volatility of five financial metrics—revenue; earnings before interest, taxes, depreciation, and amortization (EBITDA); EBIT, net income, and total assets—is strongly, negatively related to firm size and profitability. However, contrary to common belief, the volatility of these metrics is not related to a firm's financial leverage. We also calculated the volatilities using four different methodologies that are employed in practice. Although no theory guides the selection of methodologies, based upon our work, we have found that the year-over-year growth rate, using a quarterly frequency, provides the most reasonable results.

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