INPROFORUM 2013

The Relationship between the Main Objective of the Firm and Financial Success
Jana Kubecová, Monika Švárová

Language: cs
Last modified: 2013-10-29

Abstract


The aim of this paper is to analyze the possible association between profit as the main objective and the success of the company. Success is for the purpose of this paper defined as the average return on assets for the five-year period of 2007 - 2011. This paper was supported by GA JU 079/2013/S "Management models of small and medium-sized enterprises" (principal investigator doc. Ing. Ladislav Rolínek, Ph.D.). The problem is solved on a sample of 187 small and medium-sized enterprises, respectively by reducing the sample because of incomplete information is working with 106 small and medium-sized enterprises. Of the reduced sample 34 small and medium-sized enterprises considered as its main objective the profit, other companies claim the other main objectives, such as stability in the market, expansion of production / services or quality improvement. Succeeded in established the dependence between profit as the main objective and the success of the company in the form of average return on assets. Enterprises that have set as its main objective the profit, can be considered successful, achieves higher average return on assets for a selected period of five years.


Keywords


Corporate objective, Financial success, Primary objective of the company, Return on assets

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