Financial statement data in assessing the future potential of a technology firm: The case of Nokia |
| |
Authors: | Erkki K Laitinen |
| |
Institution: | Department of Accounting and Business Finance, University of Vaasa, POB 700, FIN-65101 Vaasa, Finland |
| |
Abstract: | The paper introduces a financial statement method to assess the future potential of a firm. First, the last strategic steady phase is identified. Second, growth rate for total expenditure is estimated (growth process). Third, the revenue generating potential of total expenditure is evaluated by a distributed lag function (revenue-generating process). This function is used to recalculate expenses and assets using alternative depreciation theories. Third, financial behavior is modeled by analyzing financial assets, taxation, interest expenses and revenues, and dividends (financial process). Fourth, these processes are used to assess the future potential. The method is illustrated by the case of Nokia for the period 1990-2000. |
| |
Keywords: | M Business administration and business economics marketing Accounting M4 Accounting M41 Accounting |
本文献已被 ScienceDirect 等数据库收录! |
|