Proceedings

3.4. The financial perspective
The IT sector is witnessing a period of unprecedented growth, and those responsible
for financial management of the entities are forced to reflect that growth into the value
they add to their stockholders. The stockholders look towards their stocks from the
lens of the value those stocks add to their personal fortune, from the time the titles are
purchased. This growth includes, on one side, dividends paid during all financial
periods and on the other, the growth of stock prices. These two elements combined
compose the shareholders’ earnings in the set of measures relating to the financial
perspective. The enterprise must afford selectivity, in case of a liquidity deficit. The
risk of information systems also plays a significat role in measuring the attractivity of
the company to its investors. A single model, measurable, can help decision-making,
regarding what and when to invest in, and more important, what it should not invest
in, in order to ensure what programs can provide the highest return in revenue.
The objectives of this perspectives are: increasing stockholder earnings (Monitoring
measures proposed: the growth of own stocks relative to that of the sector, business
market value, equity loss or win from reevaluation, loss of equity, economic value
added, turnover from dealing with own stocks); increasing dividends (monitoring
measures proposed: the increase of the dividend distribution rate, net dividend to 1000
monetary units in revenue); the increase of financial leverage (monitoring measures
proposed: financial leverage); reducing audit risks (monitoring measures proposed:
the proportion of information systems audit risks as part of the overall inherent and
control risks, the risk of one’s own stocks relative to the market).
Tabel 5. Financial perspective design
Measure Metrics and positive trend Data source Benchmark
The growth of own
stocks relative to that of
the sector
Percentage, increasing Stock market
transaction data
This set of measures can be used not only to help the three parties involved to follow
the guidelines, but also a a benchmark for determining management bonuses:
Bonus actual = Bonus precedent x(1-x) (Formula nr.1)
Where x is the deviation from targets in percentages. This variable is determined, as
the next formula shows, by comparing the targets for the selected measures relevant to
~ 454 ~
Stock market
transaction data
Business market value currency, increasing Valuation reports Financial news
Equity loss or win from currency, increasing Balance sheet, equity Equity statement
reevaluation
statement
Loss of equity currency, decreasing Balance sheet, income
statement
Financial news
Increase of the dividend
distribution rate
percentage, increasing Financial statements Financial news
Net dividend to 1000
monetary units in revenue
Currency, stable or increasing Financial statements Financial news
Self financing capacity Currency, increasing Income statement Financial
statements
The proportion of
information systems audit
risks as part of the overall
inherent and control risks
Percentage, decreasing Audit report None
The risk of own stocks Percentage, decreasing Stock market reports Stock market
relative to the market
reports