Incorporating Stakeholder Approach into Financial Analysis: The Harmonized Firm

Abstract

Author: Irina V. Ivashkovskaya National Research University The Higher School of Economics iivashkovskaja@hse.ru

This paper introduces the original author’s concept of harmonized firm based on stakeholder approach. We show that  creation of new capital structure based on the mix of financial and nonfinancial capital which  we call capital architecture becomes one of the main characteristics of such a firm.  We argue that capital architecture requires new value creation mindset based on stakeholder value added for strategic nonfinancial stakeholders  as well new tools for financial analysis.