Financial Performance : Multi Face Essay

740 Words Nov 12th, 2016 3 Pages
Financial performance is multi face and is about how company is performing to generate revenue and growth (Njeri 2014). It is measured by the firm in monetary terms by several methods in accounting as return on asset, return on equity, return on sales, operation income, net asset value, earnings before interest and tax to assess the corporate performance. All these methods used by many companies in order to compare (Waddock and Graves 1997; Schniederjans 2013). Schniederjans (2013) added that for example earning per share reflects value and measure profitability of investments. Elayan et al. (2016) highlighted the quality of the financial reports that should have transparency, unbiased and understandable to reflect reality and ease decision making. As market responds better when financial reporting is getting improved.

Social media purely have relation with financial reporting as sharing result and earnings (Enright 2012). It has relation quantitative and qualitative measure for status of current situation (Sidorova et al. 2016). Social media is cheap and effective especially small firms as it improves image and able to share information as annual reports so access easier and quicker and more interactive as it through videos (Enright 2012; Kadam and Ayarekar 2014)
Social media adds value to the firm using it as 60% Twitter and Facebook 1.28 billion in 2014 so better reach to customers mean customers are more satisfied of performance of company. For example if there is any…

Related Documents