The Impact of Financial Reporting on Corporate Performance: A Study Run on Exxon Mobil


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Akman V., Shehab A. A. , Kızıl C.

4th Asia Pacific International Congress on Contemporary Studies (International Modern Sciences Congress), Santiago, Filipinler, 12 - 13 Aralık 2020, ss.244-252

  • Basıldığı Şehir: Santiago
  • Basıldığı Ülke: Filipinler
  • Sayfa Sayıları: ss.244-252

Özet

In this paper, the impact of financial reporting on the corporate performance of a business organization, which is the Exxon Mobil Corporation is emphasized. Thus, Exxon Mobil Corporation is selected as a sample to show the assessment process of investment decisions. The consequences of financial reporting quality (FRQ) on corporate performance are also specifically examined in the case of Exxon Mobile Corporation. There is satisfactory literature on which underlined the positive effect of financial reporting quality on financial performance of corporations. In conclusion, based on the findings of this study, management of Exxon Mobil Corporation can clearly benefit from the use of debt finance in performance of company’s growth. It is also critical for the management of Exxon Mobil Corporation to maintain their creditor’s turnover ratio at a zero point, because neither too high nor too low is good for the company. So, for Exxon Mobil Corporation, the creditor’s turnover ratio should be at a point where the creditors and purchases (cost of sales) are equal. Currently, Exxon Mobil Corporation can also take advantage of credit facility and any discount associated with prompt payment of goods to increase profitability index. It is vital that the management supervise corporation’s costs more efficiently in generating more income for the corporation. Finally, the management should employ corporation’s assets efficiently in generating higher income for the company. Exxon Mobil Corporation should expand its operations in order to make more sales and profits. Current ratio, quick ratio (acid-test ratio) and working capital ratio need improvement.