FINANCIAL POSITION AND ITS RELEVANCE TO STAKEHOLDERS

• Main Author: MIRON VASILE-CRISTIAN-IOACHIM
• Format: Article
• Language: English
• Published: Academica Brâncuşi 2015-04-01
• Series: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie
• Subjects: financial position; balance sheet; overall solvency ratio; general liquidity ratio; indebtedness degree; going concern.
• Online Access: http://www.utgjiu.ro/revista/ec/pdf/2015-02/52_Miron.pdf

The financial position of an economic entity is a concept that can have different meanings, depending on the stakeholder category that make its analysis. In energy sector, which is considered of high importance in the national economy, we consider that the most important category of stakeholder is the state (government), because ensuring the functionality of this sector is an crucial condition for development of others sectors from national economy. For this reason, we can look at the informational needs of other stakeholder categories trough the state’s “sine qua non” condition to ensure the optimal functionality of this sector, which manifests itself like this: the functioning of the sector involves the attraction of investors, the functioning of the sector involves the existence of human resources, the functioning of the sector cannot be ensured without the existence of commercial relations that involves suppliers and clients and for insuring the functioning of the sector it is often require various financing sources. All those aspects are giving raise to some categories of stakeholder interested over the parameters in which the energy sector entities are functioning, one of the interest domain being the financial position of the companies activating in its field. Over the present study we had in view to highlight the main present approaches regarding the concept of financial position, but also the main issues fallowed by the main stakeholder categories in their attempt to appreciate the financial position of the entities activating in energy sector which are listed to Bucharest Stock Exchange. The results of this study have showed that there is some base requirements regarding the informational needs of stakeholder regarding the financial position of the companies activating in energy sector, and those are related to the concepts of going concern, overall solvency ratio, general liquidity ratio and indebtedness degree. After this study it has concluded that the going concern is difficult to appreciate trough mathematical indicators. On the other hand, analysis of the overall solvency ratio, general liquidity ratio and indebtedness degree has shown that in the last 5 years analyzed entities had generally record satisfying evolutions, but it also highlight some entities in which the analyzed indicators show doubts regarding a balanced financial position.