Proceedings

the future and that the efficiency of these techniques derives from the way that
accounting principles are implemented (Penman, 2010).
Beiner et al. (2006) and Klein (2002) state that between the value of the company and
the quality of corporate governance there is a direct and positive connection. They
support their opinion with a study performed on quoted Swiss companies, reflecting at
the end the correlations established between the two phenomena. In the same
direction, we can notice that the connection between the value of the company and the
compensations obtained by managers has a significant impact on their decisions to get
involved in the governance of the entity. Shareholders prefer the manager’s
compensation to be tightly connected with the value of the company, because this
connection provides management with the motivation to create wealth for the owners
(Lee and Chen, 2011).
2. RESEARCH METHODOLOGY
The purpose of this study is to stress the informational usefulness of evaluation
methods, their ability to objectively reflect, in conditions of economic insability, the
value tendencies of the company. Used by managers in the control process through
the value of the economic entities, the techniques for establishing the monetary
equivalent of the business must provide an appropriate financial dimension, able to
support the strategic decisions that have to be taken. In this sense, the dynamic
analysis of these values can provide clues on the potential risks, especially on the
insolvency risk, the relevance of the method having in this case a major importance.
Knowing that the results obtained from the usage of evaluation methods are directly
related and tightly connected to the financial state and performance of the company,
based on a deductive-inductive approach, we aim to create a hierarchy of these
methods (patrimonial – equity value, based on the net present cash flows, based on
market comparisons), starting from the analysis of a sample of companies quoted in
the Bucharest Stock Exchange (BSE). The comparability criterion used to classify
evaluation methods will be the number of cases correctly included into one of the two
categories (solvent and insolvent companies).
This approach, based on a positivist process, implies validating the formulated work
hypotheses, through empiric results obtained after the analysis of the data collected
from the studied sample (Smith, 2003).
2.1. Formulating the work hypotheses
Considering the computing method of the value of a company based on the three
evaluation methods previously mentioned, we aim to test the following formulated
work hypotheses:
Hypothesis 1: It is identified a profile of the insolvency risk based on the association
of the increase/decrease indexes of the values estimated following the application of
the three evaluation methods, in the analyzed sample.
Hypothesis 2: There is a score function obtained on the basis of the increase/decrease
indexes of the value of the studied entities, which classify them into two groups of
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