Financial controlling in electricity companies using enterprise resource planning software

Kazan Federal University, Institute of Management, Economics and Finance, 4 Butlerov street, Kazan 420012, Russian Federation

^* Corresponding author: EJStrelnik@kpfu.ru

Abstract

The article is devoted to the study of financial controlling in corporate management based on ERP systems. The purpose of the study is to substantiate key top-level indicators for understanding the effectiveness of financial controlling in electricity companies. To achieve this goal, the stages of development of controlling from company cost management to complex financial processes and their implementation as part of ERP systems were studied. In the course of the study, we formulated a hypothesis that the most preferred key indicators for assessing financial controlling may be value management indicators. The choice and justification of key indicators for creating a financial controlling system were also carried out; financial controlling was considered as the basis for creating a value-oriented corporate management system. Based on the hypothesis put forward, a regression analysis was carried out, which showed a significant relationship between indicators for the sample of electricity companies under this study. The total sample size was about 600 observations. As a result of the study, it was proposed to use the indicator of economic value added (EVA) or monetary value added (CVA) as a basic indicator of effectiveness of financial controlling system in electricity companies, which, according to research, have a fairly high correlation with the indicator of market value added (MVA).