scholarly journals Studies regarding the importance of management decisions in ensuring authentic financial sustainability

2020 ◽  
Vol 208 ◽  
pp. 03051
Author(s):  
Gabriela Ignat ◽  
Lilia Șargu ◽  
Haralambie Athes ◽  
Teodor Bivol ◽  
Anelisse Bivol Nigel
Keyword(s):  
Development Strategy ◽  
Financial Risk ◽  
Bank Loans ◽  
Financial Sustainability ◽  
Strong Impact ◽  
Managerial Decisions ◽  
Increased Risk ◽  
Accounting Principle ◽  
A Company

In an economic environment with a perpetually increasing number and complexity of challenges, financial sustainability must be part of the development strategy of any company, emphasizing the good management of the patrimonial resources on the long term. The financial sustainability of a company is actually the ability to generate value with the help of a correct balance between investments and sources of financing. Simultaneously, within a company, the emphasis will be on the vigor of the accounting principle of continuity in long-term operations. Therefore, at the level of each company, managers are faced with challenges related to managerial decisions that would ensure financial sustainability. In Romania most of these companies are financed by bank loans, which leads to a lack of liquidity, which in turn triggers an increased risk of inability to make payments. In a company, financing sources have a strong impact on the liquidity risk, and, therefore, the higher the share of the equity in the company’s total financing sources, the lower the financial risk. The results of our research are relevant for providing useful information in managing the activities of companies. wineries and more. Correct and timely information can help a company to optimize its resources and, in addition, to perform a correct analysis. The aim of our research was to make a diagnosis based on documentation of financial sustainability and the factors that influence it. The case study was conducted at a wine company in Tulcea County, Romania, namely SC Alcovin SRL Măcin.

scholarly journals Anti-crisis development strategies of insurance companies in Ukraine and Poland in the context of COVID-19

2020 ◽  
Vol 11 (1) ◽  
pp. 21-29
Author(s):  
Oksana Polinkevych ◽  
Ryszard Kamiński
Keyword(s):  
Development Strategy ◽  
Circular Economy ◽  
Development Strategies ◽  
Insurance Companies ◽  
Financial Sustainability ◽  
Insurance Company ◽  
Successful Operation ◽  
A Company ◽  
New Strategies

Given the growing threats to the financial sustainability of businesses during the COVID-19 period, anti-crisis development strategies are the basis for ensuring successful operation and maintaining competitiveness in the markets. Insurance companies formulate and implement anti-crisis strategies in accordance with the requirements of the circular economy. Thus, the purpose of this study is to identify the main anti-crisis development strategies that insurance companies adhere to during COVID-19. The features of strategies that existed before the pandemic and were formed during the pandemic are identified. Tourism and hotel and catering business is an activity that considers the conditions of the circular economy. It is in this industry that the highest risks arise during the period of COVID-19. An anti-crisis development strategy of insurance companies during a period of pandemics and crises is understood as a tool for resolving contradictions in the development of a company in the event of a crisis or its threat. Moreover, the development process of the insurance company is inevitable, given the manifestations of the circular economy. As a result, insurance companies changed and consolidated anti-crisis development strategies during COVID-19. The newly created concentrating effort strategy combined the strategy of long-term planned changes and the strategy of balancing the interests of the insurance company and stakeholders. Instead, new strategies have emerged to innovate and maintain an adequate level of financial sustainability. It is especially worth highlighting the marketing strategy that ensures the image of insurance companies.

scholarly journals Change Management Strategy for the Activities of Business Organizations

2021 ◽  
Vol 90 ◽  
pp. 01003
Author(s):  
Irina Avdeeva ◽  
Tatyana Golovina ◽  
Andrey Polyanin
Keyword(s):  
Change Management ◽  
Development Strategy ◽  
Management Strategy ◽  
Economic Effects ◽  
Business Organizations ◽  
Managerial Decisions ◽  
Strategic Approach ◽  
Potential Risks

Within the context of modern management, business organizations need to realize that everything around them is changing: the rules of the game, the participants, the scale of activities, and the size of markets. In other words, nothing is constant. The changes may be both local and global, whereby developments may affect different fields: executive and administrative, technical and economic, social and public, informative and analytical. Managerial decisions taken inside an organization under the aforementioned conditions require sound theoretical grounds for selection in terms of potential risks and current and future economic effects. Traditionally, long-term decisions on setting goals for an activity of a business organization and determining ways to achieve them are considered within the framework of strategic planning, as a result of which a development strategy is formed. However, under current circumstances, the place and role of change management in the strategy of business organizations requires reinterpretation. The academic originality of this contribution lies in the specification of a concept for change management with regards to the activities of business organizations based on a strategic approach and adaptation to dynamically changing market conditions, including long-term planning. As part of the study, the essence of a strategic approach to change management regarding the activities of business organizations is considered, the principles of building a change management strategy are highlighted, and an algorithm for its development and implementation is proposed.

scholarly journals Sustainable development in marketing strategy

2021 ◽  
pp. 83-95
Author(s):  
Atanaska Reshetkova
Keyword(s):  
Sustainable Development ◽  
Marketing Strategy ◽  
Business Strategy ◽  
Marketing Mix ◽  
Marketing Management ◽  
Strong Impact ◽  
Economic Aspects ◽  
A Company ◽  
Corporate Level

Marketing strategy is an important part of every business strategy because it is crucial in attaining marketing goals and to grant the overall success of a company. Broadly speaking, marketing strategy allows to define the long-term marketing goals of a firm and what needs to be done in order to achieve these goals. This provides a set of planned steps to bring the marketing mix into the desired state to achieve the overall business goal. In this sense, the marketing strategy is never created independently based on the corporate level strategy. Marketing management has evolved over the past decade to become customer-cantered, and it continues to change along with consumers. It is not surprising that the concept of sustainable development (SD) has left its footprints on marketing strategy, as today it has strong impact on the consumer’s mind and behaviour. Managers face the challenge of incorporating the main dimensions of sustainability into the marketing strategy—environmental, social and economic aspects. The main goal of this chapter is to explain how SD is integrated with marketing.

scholarly journals Changes in the use of alcohol and tobacco in Slovenia during the first wave of the SARS-COV-2 pandemic

2021 ◽  
Vol 61 (1) ◽  
pp. 6-13
Author(s):  
Sandra Radoš Krnel ◽  
Carolin Kilian ◽  
Marjetka Hovnik Keršmanc ◽  
Maja Roškar ◽  
Helena Koprivnikar
Keyword(s):  
Alcohol Consumption ◽  
Tobacco Use ◽  
Financial Distress ◽  
Tobacco Consumption ◽  
European Countries ◽  
Strong Impact ◽  
Long Term Effects ◽  
Financial Loss ◽  
Increased Risk

Abstract Background In the first months of 2020, the SARS-CoV-2 virus spread all over the world and numerous measures were adopted that had a strong impact on both personal and public life. This contribution explores changes in alcohol and tobacco use during the first months of the COVID-19 pandemic in Slovenia. Methods Self-reported changes in alcohol and tobacco use during the first few months of the Covid-19 pandemic were recorded in 495 Slovenian adults, as part of the European Alcohol Use and COVID-19 survey. Results About half of the Slovenian sample indicated that the frequency of drinking occasions did not change in the months after the pandemic’s outbreak, while the remainder stated either a decrease (26.0%) or an increase (24.2%). 23.1% reported a decrease and 17.3% an increase in the quantity of alcohol consumed per occasion. Respondents who reported that their overall alcohol consumption decreased were more likely to be male than female and more likely to be younger than middle-aged. Those who reported experiencing at least a substantial level of distress due to financial loss were at a four-times increased risk of reporting an increase in their alcohol consumption compared to individuals who reported no or only some financial distress. Of the 120 people reporting the use of tobacco, almost half indicated an increase in tobacco consumption within the previous month, and about 20% reported a decrease in use. The differences in the results between Slovenia and other European countries are small and the overall pattern suggests that the situation in Slovenia was comparable to other European countries. Conclusion As this pandemic continues to evolve, further monitoring is needed to identify the long-term effects of alcohol and tobacco use on public health in relation to the management of COVID-19.

scholarly journals Adapting the Serbian economy to regional and European integration

2014 ◽  
Vol 66 (3-4) ◽  
pp. 376-394
Author(s):  
Dobrica Vesic
Keyword(s):  
International Relations ◽  
European Integration ◽  
Development Strategy ◽  
Economic Activities ◽  
Strategy Of Development ◽  
The Development Strategy ◽  
International Economic Cooperation ◽  
Factors Of Production ◽  
A Company

In contemporary international relations, economic activities are becoming increasingly prioritized in relation to political ones. For Serbia, it is important to have a clear strategy of development that will have significant implications for all economic activities and international economic cooperation, i.e. the process of European integration. In creating the development strategy it is necessary to choose the sectors of the economy on which the future development of the Serbian economy will be based. On the other hand, instead of maximizing profits and due to the creation and strengthening of several relevant groups of stakeholders (managers, employees, customers, the state, etc.) whose long-term interests must be taken into consideration by a company, it is primarily through harmonization of their interests that pluralism and complexity of goals of a contemporary corporate company is achieved. Attaining of the set goals in the radically changed and highly competitive market environment demands to formulate strategies based on a detailed analysis of the macroeconomic and microeconomic environment, resources and other business potentials. It should be noted that there have been identified three phases of competitiveness of a country and these are as follows: factor-driven, efficiency-driven and innovative-driven competitiveness. In its development every country should go through competitiveness based on the supply of factors of production through investment driven competitiveness based on the efficiency of use of available factors of production to innovation driven competitiveness.

scholarly journals Designing of social and labor relations in the context of transformation: principles, organizational and institutional aspects

2020 ◽  
Vol 3 (5) ◽  
pp. 43-53
Author(s):  
Elena Yurevna Legchilina
Keyword(s):  
Economic Development ◽  
Development Strategy ◽  
Labor Relations ◽  
Economic Systems ◽  
Conceptual Basis ◽  
Economic Development Strategy ◽  
Socio Economic Development ◽  
Institutional Aspects ◽  
A Company

The paper studies the organizational and institutional problems in the field of labor relations transformation and substantiates novel principles of their designing aimed at achieving the balance between the interests of the parties. We used a system-axiological approach based on a combination of analytical, institutional and systemic methods. The concept of co-evolution was applied while considering organizational and institutional aspects of social and labor relations. The study proposes axiological dialectics as a systemic and meaning-forming factor in the transformation of labor relations. The author understands the transformation of labor relations as a construction of their novel organizational and inter-organizational structure intended to ensure the long-term functioning and development of the company. The analysis of organizational and institutional bases of labor relations is carried out and four principles for the construction of labor relations in the transformation state in respect to economic systems are developed. The proposed organizational and institutional methodology and principles for labor relations designing can reduce contradictions in the system of labor relations and help achieve a balance of its participants’ interests. They can also serve as a conceptual basis for building the system of labor relations under transformation, as well as a way to shape the socio-economic development strategy of a company and/or an economic system.

scholarly journals Do Bank Loans Curb Corporate Moral Hazard?

2016 ◽  
Vol 33 (1) ◽  
pp. 115-122
Author(s):  
Paul Moon Sub Choi ◽  
Joung Hwa Choi
Keyword(s):  
Moral Hazard ◽  
Bank Loans ◽  
Probability Of Default ◽  
Optimal Contract ◽  
Term Contract ◽  
Managerial Decisions ◽  
Managerial Action ◽  
Empirical Implications ◽  
Hidden Action

In this paper, we discuss optimal contract drafting between a lender with deficient monitoring capabilities and an agency-ridden borrower with insufficient budget to finance an investable project. The theoretical implications are as follows: First, the first best solution (FBS) is achievable under no hidden action. However, the borrower’s action is hardly observable in practice. Second, with unobservable managerial decisions the borrower exerts sub-optimal effort (moral hazard), and the probability of default increases. Lastly, with a penalizing discretion entitled to the bank on a long-term contract, the financial intermediary will be able to control the firm’s managerial action effectively such that the solution is equivalent to the FBS attained under no hidden action. Empirical implications are followed.

scholarly journals LIQUIDITY AND SOLVABILITY ON PROFITABILITY : A STUDY ON TOLL ROAD SUB -SECTORS COMPANIES LISTED AT INDONESIAN STOCK EXCHANGE

2021 ◽  
Vol 5 (1) ◽  
pp. 72
Author(s):  
Ivan Morgan Nababan
Keyword(s):  
Financial Risk ◽  
Stock Exchange ◽  
Positive Influence ◽  
Ability To Pay ◽  
Investment Projects ◽  
Negative Effect ◽  
Financial Obligations ◽  
Definition Of ◽  
A Company

In the current era of development, Indonesian companies not only have to compete with domestic companies but face diverse competition from abroad. These conditions have also fueled competition in the industry sector. By maintaining and able to develop the companies, and achieving company goals both management and company leaders are often faced with various problems both technical, administrative and financial. Therefore the company management must take rational decisions and can be accounted for and the decision-maker requires a clear picture of the problems faced by the company. If the company increases the amount of debt as a source of funds it can increase financial risk. If the company cannot manage funds raised from debt productively, it can have a negative effect and have an impact on decreasing company profitability. Conversely, if the debt can be managed well and used for productive investment projects, it can have a positive influence and have an impact on increasing the profitability of companies. Investment in infrastructure is considered that it is one of the best ways to develop money. infrastructure has the opportunity to get a large return on investment.Profitability is the company's ability to make a profit concerning sales, total assets, and own capital (Sartono in Ima Hernawati, 2007). High profitability will illustrate the effectiveness of management in managing the company in generating profits. If the effectiveness and efficiency of capital use can be achieved, then there is a possibility that the company will make a large profit. Liquidity is related to the problem of a company's ability to meet its financial obligations that must be met immediately. The amount of payment instruments (liquid instruments) owned by a company at one time is the paying power of the company concerned. A company that has the power to pay may not be able to fulfill all financial obligations that must be fulfilled immediately or in other words the company may not have the ability to pay. The solvency of a company shows the company's ability to meet all financial obligations if the company is currently liquidated. The definition of solvency is intended as the company's ability to pay all its debts, both long-term and long-term. This research is expected to add insight into the effect of liquidity on profitability in other companies on the Indonesia Stock Exchange

Study on financial risk prediction of enterprises based on logistic regression

2021 ◽  
pp. 1-7
Author(s):  
Qiaoyun Qi
Keyword(s):  
Logistic Regression ◽  
Financial Risk ◽  
Logistic Regression Model ◽  
Great Influence ◽  
Financial Indicators ◽  
Accuracy Rate ◽  
Financial Situation ◽  
Good Market ◽  
A Company

Financial risk has a great influence on the development of enterprises, and the prediction of financial risk can help enterprises to treat risks early. In order to realize the prediction of enterprise financial risk, find the risk as early as possible and make a response as soon as possible, according to the principle of predictability and reliability, this study selected 15 financial indicators from aspects of debt repayment level, profit level, operation level, growth level, and cash level, then predicted the risk by the logistic regression model, and analyzed the risk of 36 pairs of enterprises. The results showed that the model designed in this study had an accuracy rate of 91.67%, and the risk of a company was successfully predicted based on the financial situation of the company from 2018 to 2020, which verified the reliability of the method. Thus the model can effectively predict the financial risk of enterprises, and it can be further promoted and applied to ensure the long-term development of enterprises and establish a good market environment.

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