Non-Financial Factors of Value Formation in the Financial Control System of the Holding Development Strategy

Abstract

The growth of holding business structures predetermined the need to transform existing financial management tools. Among other results, a special financial control has appeared to achieve the long-term strategic company goals. Financial control of the development strategy with specific implementation is now one of the key management tools ensuring the prospective implementation of the company corporate strategy. The research objective is to determine the methodological basis for a controlled indicators system, considering non-financial factors of the company value formation. The methodological basis of the research consists of a systematic approach, use of statistical methods of data analysis and evaluation, content analysis. The results have been substanted due to the information published on the Moscow Exchange website, the Forbes rating of the largest Russian companies, the official websites of Russian companies. The research relevance is determined by need to clarify the content of financial control of holding development strategy and its implementation. The examples of building financial control systems in Russian companies have been provided. A universal scheme of financial control system has been created. Key methods of strategic financial control have been defined: strategic modelling; building value chains; factor and scenario analysis; in-depth study of financial status using mathematical and econometric methods and modern computer software. Regarding the specifics of financial control, its implementation scheme has been defined, and the main differences from the traditional implementation have been outlined. Company value maximizing is the main goal of financial control of the development strategy. It has substanted the control of non-financial cost factors. They include: company management model; the degree of social responsibility of the company; intellectual capital; the degree of innovation; customer loyalty and brand awareness; quality and novelty of products; company’s contribution to the socio-economic development of the country and regions where it is presented. Control of non-financial factors requires developing a system of controlled indicators. This is an advanced research direction of the topic.

Keywords

• holding
• a system of financial control
• financial control of development strategy
• value-oriented approach
• non-financial value factors