THE PROBLEM OF INFORMATIVE USEFULNESS OF RESIDUAL INCOME. RIBV RADAR CONCEPT (Problem informacyjnej sprawności zysku rezydualnego. Koncepcja informacyjnej sprawności zysku rezydualnego. Koncepcja radaru RI(BV)

• Authors: Cwynar Andrzej
• Languages of publication: PL

Abstracts

EN

RIBV is one of possible variants of residual income calculation based on unadjusted book values. Usefulness of residual income should always be evaluated separately from the point of view of its motivational function and informational function. From the first perspective, RIBV is weak goal-congruent (in decisional sense), although more goal-congruent than traditional accounting metrics. Problems implied by weak goal-congruence of RIBV can be solved by utilization of a tool allowing for reduction in managerial myopia (e.g. bonus bank). However, such tools do not resolve the problem of low informative usefulness of RIBV, that was confirmed by the empirical research presented in the article. The problem manifests itself in the fact that RIBV can signal value creation (destruction) when it is not created (destroyed), it can also exhibit value created (destroyed) sums that are not true. Thus, periodic performance measurement, evaluation and compensation system that is to be based on RIBV must include not only a tool resolving problems resulted from low motivational usefulness of the residual income version, but also a tool resolving problems resulted from low informational usefulness of RIBV. Multidimensional evaluation of RIBV performance, utilizing RIBV radar presented in the article, can serve as such tool.

Keywords

EN

FIRM VALUE; PERFORMANCE MEASUREMENT AND EVALUATION; RESIDUAL INCOME

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
• Journal: Finansowy Kwartalnik Internetowy e-Finanse
• Year: 2010
• Volume: Special Issue
• Pages: 86-109
• Document type: ARTICLE

Contributors

author

Cwynar Andrzej

• Dr Andrzej Cwynar, Instytut Badan i Analiz Finansowych, Wyzsza Szkola Informatyki i Zarzadzania w Rzeszowie, ul. Sucharskiego 2, 35-225 Rzeszow, Poland

Identifiers

CEJSH db identifier

10PLAAAA08957