Impact of effective controllership on the financial performance and position of the business. Evidence from Azerbaijan

Ing. Osman Askarov

Master's thesis

Abstract:

The purpose of this thesis is to investigate the impact of effective controllership on the financial position and performance of a selected company from Azerbaijan. The method used in this thesis intends to examine the impact of budgeting and provide a variance analysis of the company's financial performance and condition by applying and comparing two financial control instruments, incremental and zero-based budgeting methodologies. Thesis contrasts the two budget plan ways by briefly concentrating on the advantages and disadvantages of each, emphasizing the reason for and advantage gained by the Company by transitioning to the zero-based budgeting strategy. The study found out that variance analysis method is a useful budgetary control tool since it provides variances and evaluates their meaning or importance. This technique enables a corporation to be properly prepared to begin a new fiscal year by reviewing prior and current year performance. However, because the process involves a lot of procedures by the time crucial information is received, a corporation must guarantee that they have a professional competent of managing it.

Abstract:

The purpose of this thesis is to investigate the impact of effective controllership on the financial position and performance of a selected company from Azerbaijan. The method used in this thesis intends to examine the impact of budgeting and provide a variance analysis of the company's financial performance and condition by applying and comparing two financial control instruments, incremental and zero-based budgeting methodologies. Thesis contrasts the two budget plan ways by briefly concentrating on the advantages and disadvantages of each, emphasizing the reason for and advantage gained by the Company by transitioning to the zero-based budgeting strategy. The study found out that variance analysis method is a useful budgetary control tool since it provides variances and evaluates their meaning or importance. This technique enables a corporation to be properly prepared to begin a new fiscal year by reviewing prior and current year performance. However, because the process involves a lot of procedures by the time crucial information is received, a corporation must guarantee that they have a professional competent of managing it.

Keywords

OECD, CEO, CFO, KPI, CIMA, ABB, ZBB, DBB, R&, D, NEC, GDP, IMF

Language used: English

Date on which the thesis was submitted / produced: 5. 1. 2024

Thesis defence

• Date of defence: 31. 1. 2024
• Supervisor: Ing. Oleksandra Lemeshko
• Reader: Ing. Petr Valouch, Ph.D.

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Finance / Finance