This article covers methodological aspects of monitoring financial stability. The purpose of the study is to justify recommendations on abnormal profitability evaluation as a key indicator for efficient growth of business. An assessment framework of abnormal profitability is proposed in the elaboration of the economic value added concept, the abnormal profitability being considered as an excess of the adjusted return on investment above the weighted average cost of capital. The framework has been tested on key industries in the Russian economy. There are reasons given for the abnormal profitability evaluation to be a much needed tool for monitoring companies' financial stability for the purposes of providing sustainable economic growth.

Original languageEnglish
Title of host publicationProceedings of the 28th International Business Information Management Association Conference - Vision 2020
Subtitle of host publicationInnovation Management, Development Sustainability, and Competitive Economic Growth
PublisherIBIMA
Pages681-688
Number of pages8
ISBN (Electronic)9780986041983
StatePublished - 1 Jan 2016
Event28th International Business Information Management Association Conference - Vision 2020: Innovation Management, Development Sustainability, and Competitive Economic Growth - Seville, Spain
Duration: 9 Nov 201610 Nov 2016

Conference

Conference28th International Business Information Management Association Conference - Vision 2020: Innovation Management, Development Sustainability, and Competitive Economic Growth
Country/TerritorySpain
CitySeville
Period9/11/1610/11/16

    Research areas

  • Abnormal profitability, Financial stability, Financial stability monitoring, Real sector monitoring

    Scopus subject areas

  • Management Information Systems
  • Information Systems and Management

ID: 32850843