European SMEs’ value management based on controlling, financial analysis and ratios – empirical study

  • Received November 6, 2019;
    Accepted November 29, 2019;
    Published December 20, 2019
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/imfi.16(4).2019.24
  • Article Info
    Volume 16 2019, Issue #4, pp. 277-289
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  • Cited by
    2 articles
  • Funding data
    Funder name: The University of Finance and Administration, Czech Republic
    Funder identifier: 04274644
    Award numbers: 742712019/02. IGA VŠFS
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Small and medium enterprises (SMEs) are a powerful economic force, significant employers, and creators of added value. In the European Union SMEs are the backbone of its economic and innovative potential, and for this reason, economic development and stability of SMEs are critical. The goal of this study is to apply modern controlling to the management of SME value growth using the tools and indicators of financial analysis. This study is based on a detailed analysis of 359 companies from the European Union in order to test 4 hypotheses. The data obtained were subjected to statistical analysis to identify the dependence between the controlling management of a company, tools of financial analysis, innovative potential, level of digitization, internal auditing, and HR communication tools used in the SME. The statistical analysis confirmed a close relationship between the studied variables and created a model for managing the company’s value growth for the study sample of SMEs. Subsequent experimental testing was used to confirm these conclusions, and other important associations were found that are important for successful management of SMEs value growth. The findings obtained are applicable in practice and can be used for a deeper analysis of the issues in question.

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    • Table 1. Variables entered/removed
    • Table 2. Inclusion in the final model
    • Table 3. Coefficient of determination value (R-squared) model summary
    • Table 4. Use of the tools of financial analysis in the SMEs depending on the number of employees in the SMEs