The Economic-mathematical Nature of the HGN Model
Concept as a Tool for Measuring Performance of Enterprises
The Economic-mathematical Nature of the HGN Model
Concept as a Tool for Measuring Performance of Enterprises
Author(s): Eduard Hyránek, Michal Grell, Ladislav Nagy, Ivona ĎurinováSubject(s): Economy, Business Economy / Management
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: non-financial profitable enterprise performance; HGN model; efficiency indicators; efficiency decreasing indicators; ratio outliers; linear optimization model; classical and tolerance approach to sens
Summary/Abstract: The article talks about the newly-conceived HGN model based on ratio indicators. The main characteristic of the model is a synthetic indicator based on “refining” chosen financial efficiency indicators by separating out impacts measured by using chosen efficiency decreasing indicators. We identify and present a way to determine the minimum limits of the synthetic indicator characterizing the performance of a non-financial enterprise. We apply both the classical and tolerance approach to sensitivity analysis in a linear optimization model. We demonstrate the performance measurement possibilities provided by the gradual improvement of the HGN model by designing two versions of the model.
Journal: Ekonomický časopis
- Issue Year: 66/2018
- Issue No: 03
- Page Range: 309-325
- Page Count: 17
- Language: English