THE IMPORTANCE OF FINANCIAL REPORTING FOR COMPANY MANAGEMENT IN INTERNATIONAL BUSINES

Abstract

The paper presents the importance and role of financial analysis in corporate governance, as well as the application and role of analysis of financial statements in the system of international business. This research presents how company management can use financial reporting and financial analysis information to stimulate but also control professional managers in running a company. Presentation of processed information to internal users who show the success of decision-making and the financial position of the company as a consequence of decision-making, accounting is done in the form of a balance sheet or financial report. This report, although created in accounting, is the responsibility of the company's management. The main theme of our investigation is how this financial reporting affects management as well as what is its role in making decisions concerning the business activities of the company. The desired results will be obtained by empirical analysis, on the basis of which an adequate conclusion can be defined in the end, i.e. the pre-set assumptions can be confirmed or possibly rejected.