Economics and management of enterprises

Identifying obstacles in the evaluation of companies based on the research cluster method

Economic Annals-XXI

Economic Annals-XXI: Volume 199, Issue (9-10), Pages: 4-18

Citation information:
Socoliuc, M. I., Melega, A., Hlaciuc, E., & Botez, D. (2022). Identifying obstacles in the evaluation of companies based on the research cluster method. Economic Annals-XXI, 199(9-10), 4-18. doi: https://doi.org/10.21003/ea.V199-01

View Full TextDownload PDF

Mihaela Ionela Socoliuc
PhD Student (Accounting),
Department of Accounting, Audit and Finance,
Faculty of Economics, Administration and Business,
Stefan cel Mare University
13 Universității Str., Suceava, 720229, Romania
stanciu_mihaela@yahoo.com
ORCID ID: https://orcid.org/0000-0002-7250-2304

Anatol Melega
PhD Student (Accounting),
Department of Accounting, Audit and Finance,
Faculty of Economics, Administration and Business,
Stefan cel Mare University
13 Universității Str., Suceava, 720229, Romania
melega.anatol@gmail.com
ORCID ID: https://orcid.org/0000-0003-4763-0520

Elena Hlaciuc
PhD (Accounting),
Professor,
Department of Accounting, Audit and Finance,
Faculty of Economics, Administration and Business,
Stefan cel Mare University
13 Universității Str., Suceava, 720229, Romania
elena.hlaciuc@usm.ro
ORCID ID: https://orcid.org/0000-0003-0601-748X

Daniel Botez
PhD (Accounting),
Associate Professor,
Department of Accounting, Auditing and Economic Analysis,
Vasile Alecsandri University
157 Mărășești Str., Bacău, 600115, Romania
daniel63331@yahoo.com
ORCID ID: https://orcid.org/0000-0003-0986-7631

Identifying obstacles in the evaluation of companies based on the research cluster method

Abstract. In the current context of accelerating digitisation in almost all areas of business, assessing the market value of a company has become a topic of debate both among practitioners and in the academic community due to a significant increasing presence of intangibles in the assets of these companies. Therefore, the purpose of our research is focused on the identification of existing impediments in the evaluation process of companies over time. The established objectives are: meta-analysis of the most relevant papers on company valuation and bibliometric analysis of WoS indexed papers, during the period of 1975-2021 having such topics as performance, corporate governance, information, market, company, fair value, intellectual capital and earnings management.
The research methodology is based on a database formed by all studies indexed in WoS in the last approximately 45 years with the mentioned topics and the obtained results consist in determining the structure of research clusters formed by the key concepts used in company evaluation. The usefulness of the results is confirmed by the creation of future research directions on the topic of company valuation, because having the help of the existing intensity of links between research clusters of this domain, it is much easier for researchers to approach new directions and themes related to this subject.

Keywords: Market Value; Intangible Assets; Company Valuation Process; Bibliometric Analysis; Meta-Analysis; Research Cluster and Scientific Production; WoS

JEL Classification: M40; C02; C40

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V199-01

References

  1. Abramishvili, N. R., Lvova, N. A., & Voronova, N. S. (2019). Is it possible to assess the corporate market value in the emerging market? New Challenges Of Economic And Business Development – 2019: Incentives For Sustainable Economic Growth, Page 12-21. 11th International Scientific Conference on New Challenges of Economic and Business Development – Incentives for Sustainable Economic Growth, Location Univ Latvia, Riga.
  2. Barakat, A. (2014). The Impact of Financial Structure, Financial Leverage and Profitability on Industrial Companies Shares Value. Research Journal of Finance and Accounting, 5(1), 55-66.
    https://www.iiste.org/Journals/index.php/RJFA/article/view/10454/10647
  3. Barth, M. E., & Landsman, W. R. (2018). Using Fair Value Earnings to Assess Firm Value. Accounting Horizons, 32(4), 49-58.
    https://doi.org/10.2308/acch-52156
  4. Borenstein, M., Hedges, L. V., Higgins, J. P. T., & Rothstein, H. R. (2011). Introduction to Meta-Analysis. John Wiley & Sons: Chichester, UK.
  5. Borgman, C. L., & Furner, J. (2002). Scholarly communication and bibliometrics. Annual Review of Information Science and Technology, 36(1), 2-72.
    https://doi.org/10.1002/aris.1440360102
  6. Boyarko, I. M., & Samusevych, Y. V. (2011). Role of intangible assets in company’s value creation. Actual Problems of Economics, 117, 86-94.
  7. Choi, W. W., Kwon, S. S., & Lobo, G. J. (2000). Market Valuation of Intangible Assets. Journal of Business Research, 49(1), 35-45.
    https://doi.org/10.1016/S0148-2963(98)00121-0
  8. Ciubotariu, M.-S., Socoliuc, M., Grosu, V., Mihaila, S., & Cosmules, C. G. (2021). Modeling the relationship between integrated reporting quality and sustainable business development. Journal of Business Economics & Management, 22(6), 1531-1550.
    https://doi.org/10.3846/jbem.2021.15601
  9. Cosmulese, C. G., Socoliuc, M., Ciubotariu, M.-S. Grosu, V., & Mateş, D. (2020). Empirical Study on the Impact of Evaluation of Intangible Assets on the Market Value of the Listed Companies. E&M Economics and Management, 24(1), 84-101.
    https://doi.org/10.15240/tul/001/2021-1-006
  10. Dainienė, R., & Dagilienė, L. (2014). Accounting-based valuation of innovation: challenges and perspectives. Procedia-Social and Behavioral Sciences, 156, 589-593.
    https://doi.org/10.1016/j.sbspro.2014.11.246
  11. Dos Santos, T. B., & da Cunha, M. F. (2015). Valuation: a review under perspective of bias in the valuation» in the reports of public offer of acquisition of shares. Revista De Gestao Financas E Contabilidade, 5(3), 61-74.
    https://www.revistas.uneb.br/index.php/financ/article/view/965
  12. French, N., Crosby, N., & Thorne, C. (2021). Pricing to market: market value – the enigma of misunderstanding. Journal of Property Investment & Finance, 39(5), 492-499.
    https://doi.org/10.1108/JPIF-05-2021-0041
  13. Garanina, T., & Pavlova, Y. (2011). Intangible assets and value creation of a company: Russian and UK evidence. Proceedings of the European conference on intellectual capital, 165-175.
    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3490641
  14. Gorokhova, D. G., & Popov, A. Y. (2016). The Classification of Asset Valuation: Problems and Solutions. Upravlenets (The Manager), 63(5), 56-61.
    https://upravlenets.usue.ru/en/-2016/369
  15. Grosu, V., Hlaciuc, E., Mates, D., & Socoliuc, M. (2012). The impact of the International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) in determining the goodwill of companies in the European Union (EU). African Journal of Business Management, 43(6), 10708-10721.
    https://www.readcube.com/articles/10.5897%2Fajbm12.1164 https://doi.org/10.5897/AJBM12.1164
  16. Hayoun, Sh. (2019). How fair value is both market-based and entity-specific: The irreducibility of value constellations to market prices. Accounting Organizations and Society, 73, 68-82.
    https://doi.org/10.1016/j.aos.2018.05.013
  17. Ioniță, I., & Stoica, M. (2009). A New Approach Method of Company Valuation. Journal Of Economic Forecasting, 6(1), 115-122.
    https://ideas.repec.org/a/rjr/romjef/v6y2009i1p115-122.html
  18. Kepes, S., McDaniel, M. A., Brannick, M. T., & Banks, G. C. (2013). Meta-analytic reviews in the organizational sciences: Two meta-analytic schools on the way to MARS (the Meta-Analytic Reporting Standards). Journal of Business and Psychology, 28, 123-143.
    https://doi.org/10.1007/s10869-013-9300-2
  19. Kurakova, O., & Orlov, A. (2018). Methodical and Practical Approaches to Goodwill Valuation. Proceedings of The International Scientific Conference Far East Con» (ISCFEC 2018), 47, 345-348. International Scientific Multi-Conference on Industrial Engineering and Modern Technologies (FarEastCon), Vladivostok, Russia.
    https://doi.org/10.2991/iscfec-18.2019.85
  20. Lind, H., & Nordlund, B. (2019). The concept of market value in thin markets and its implications for international accounting rules (IFRS). Journal of Property Investment & Finance, 37(3), 301-310,
    https://doi.org/10.1108/JPIF-02-2019-0022
  21. Majercak, P., & Majercakova, E. (2013). The enterprise valuation and categories of the value. Financial Management of Firms and Financial: 9th International Scientific Conference Proceedings, PTS I-III, (pp. 469-475). VSB TU Ostrava, Fac. Econ., Finance Dept, Ostrava, Czech Republic.
  22. Manni, A. (2016). Company valuation. Description of company valuation methods and practical application to the specific case of a company operating in the catering industry in Ticino, Manno, 2016.
  23. Meca, E. G., Conesa, I. M., & Briones, J. L. (2009). International Valuation Standards: The view from Spanish practitioners. Revista Espanola De Financiacion Y Contabilidad-Spanish. Journal of Finance And Accounting, 38(143), 479-504.
    https://www.jstor.org/stable/42782674
  24. Melega, A. (2022). Bibliometric analysis of scientific production regarding the harmonization of accounting in BRICS emerging economies. European Journal of Accounting, Finance & Business, 10(1), 11-20.
    https://www.researchgate.net/publication/359939393_bibliometric_analysis_of_scientific_
    production_regarding_the_harmonization_of_accounting_in_brics_emerging_economies
  25. Mo, J. P. T., & Zhou, M. (2003). Tools and methods for managing intangible assets of virtual enterprise. Computers In Industry, 51(2), 197-210.
    https://doi.org/10.1016/S0166-3615(03)00036-8
  26. Ocak, M., & Fındık, D. (2019). The impact of intangible assets and sub-components of intangible assets on sustainable growth and firm value: evidence from Turkish listed firms. Sustainability, 11(19), 5359.
    https://doi.org/10.3390/su11195359
  27. Pars, M., & Sander, P. (2015). Valuation practices of intangible assets in Estonia. In SGEM 2015: Political Sciences, Law, Finance, Economics and Tourism, Vol. II, (pp. 549-556). 2nd International Multidisciplinary Scientific Conference on Social Sciences and Arts (SGEM 2015), Albena, Bulgaria.
  28. Pastor, D., Glova, J., Lipták, F., & Kovac, V. (2017). Intangibles and methods for their valuation in financial terms: Literature review. Intangible capital, 13(2), 387-410.
    https://doi.org/10.3926/ic.752
  29. Purcarea, A. A., Ipate, D. M., Danalache, F., & Sandovici, L. (2007). Management valuation as an intangible asset. In Management Of Technological Changes, Book 1, (pp. 345-350). 5th International Conference on the Management of Technological Changes.
  30. Rodionov, D., Perepechko, O., & Nadezhina, O. (2020). Determining Economic Security of A Business Based On Valuation Of Intangible Assets According To The International Valuation Standards (IVS). Risks, 8(4), 110.
    https://doi.org/10.3390/risks8040110
  31. Schmidt, F. L., & Hunter, J. E. (2014). Methods of meta-analysis: Correcting error and bias in research findings (Third edition). Sage Publications Ltd.
    https://doi.org/10.4135/9781483398105
  32. Shen, N., Au, K., & Li, W. (2020). Strategic alignment of intangible assets: The role of corporate social responsibility. Asia Pacific Journal of Management, 37, 1119-1139.
    https://doi.org/10.1007/s10490-019-09681-1
  33. Skalicky, R. (2017). The relation between the company financial brand value and the company market value. In Enterprise and Competitive Environment (pp. 814-822). 20th Annual International Conference on Enterprise and Competitive Environment, Mendel Univ Brno, Brno, Czech Republic.
  34. Socoliuc, M., Grosu, V., Hlaciuc, E., & Stanciu, S. (2018). Analysis of Social Responsability and Reporting Methods of Romanian Companies in the Countries of the European Union. Sustainability, 10(12), 4662.
    https://doi.org/10.3390/su10124662
  35. Todericiu, R., Lucia, F., & Stăniț, A. (2014). Reflections on human resources-vital intangible assets of organizations. Procedia Economics and Finance, 16, 575-579.
    https://doi.org/10.1016/S2212-5671(14)00842-9
  36. Van Eck, N. J., & Waltman, L. (2010). Software survey: VOSviewer, a computer program for bibliometric mapping. Scientometrics, 84, 523-538.
    https://doi.org/10.1007/s11192-009-0146-3
  37. Van Eck, N. J., & Waltman, L. (2017). Citation-based clustering of publications using CitNetExplorer and VOSviewer. Scientometrics, 111, 1053-1070.
    https://doi.org/10.1007/s11192-017-2300-7
  38. Volkov, D., & Garanina, T. (2008). Value Creation in Russian Companies: the Role of Intangible Assets. The Electronic Journal of Knowledge Management, 6(1), 63-74.
    https://academic-publishing.org/index.php/ejkm/article/view/811
  39. Zager, K., Pavic, I., & Rep, A. (2020). The impact of brand valuation on company’s financial position. Proceedings of FEB Zagreb International Odyssey Conference on Economics and Business, 2(1), 78-90, 11th International Odyssey Conference on Economics and Business, Electr Network.
    https://www.researchgate.net/publication/342664001_
    The_Impact_of_Brand_Valuation_on_Company’s_Financial_Position
  40. Zamora-Ramirez, C., & Morales-Díaz, J. (2018). The use of fair value measurement in financial reporting: A literature review. Studies of Applied Economics, 36(2), 489-514.
    https://doi.org/10.25115/eea.v36i2.2540
  41. Zhichun, L., Jewoong, M., Byungjoo, K., & Chih-Pu, D. (2020). Integrating adaptivity in educational games: a combined bibliometric analysis and meta-analysis review. Education Tech Research Dev, 68, 1931-1959.
    https://doi.org/10.1007/s11423-020-09791-4

Received 28.05.2022
Received in revised form 1.08.2022
Accepted 4.09.2022
Available online 29.10.2022

View Full TextDownload PDF
In, , , , , , , ,

More Papers