scholarly journals THE PROFITABILITY DETERMINANTS OF THE GLOBAL PHARMACEUTICAL & BIOTECHNOLOGY COMPANIES DURING THE COVID-19 PANDEMIC

2021 ◽  
Vol 6 (1) ◽  
pp. 43-54
Author(s):  
Boris Tušek ◽  
◽  
Ana Ježovita ◽  
Petra Halar
Keyword(s):  
Multinational Corporations ◽  
Financial Management ◽  
Financial Stability ◽  
Panel Data Analysis ◽  
Stress Test ◽  
Business Environment ◽  
Sustainable Operations ◽  
The World ◽  
Biotechnology Companies ◽  
The Impact

In today's chaotic, complex, unpredictable, and extremely dynamic business environment, it is more than ever essential to operate in a way that will ensure sustainable operations and demand for companies’ goods or services. Employing contemporary corporate governance, advanced information technology, and adequate financial management are significant foundations for sustaining high profitability and adequate financial stability as crucial objectives that ensure adding value for companies' owners. Covid-19 is an excellent stress test for every entity, as for micro-companies, so for the largest multinational corporations. Nowadays, in the era of the world Covid-19 pandemic, companies challenge to maintain business operations and going concern assumption. However, in every crisis or adverse situation, some companies take enormous benefits of it. Pharmaceutical and biotechnology companies can be characterized as the major players during this last, still actual crisis. Their role can be observed from two angles, first as a provider of necessary drugs for curing Covid-19 patients and from the other side, as a developer of effective and efficient vaccine which will ‘save the world’ and brought us back to the ‘old normal’. This paper seeks to investigate financial determinants that are the most significant for the profitability of the pharmaceutical and biotechnology companies. The question is how those companies coped with the Covid-19 crisis, and what is the impact on their profitability in 2020 compared to previous operating years? Another question is how is the development of the vaccine financed and are R&D expenses significantly increased in 2020? Therefore, the objective of the paper is to investigate the impact of the Covid-19 crisis on the profitability of global pharmaceutical and biotechnology companies. The research covers 52 entities on the global level for the period from 2010 to 2020. Data will be analysed by applying adequate panel data analysis and moderator regression analysis. Keywords: profitability ratios, pharmaceutical and biotechnology companies, Covid-19

FINANCIAL CONTROLLING IN THE SYSTEM OF FINANCIAL MANAGEMENT

2018 ◽  
Vol 28 (1) ◽  
pp. 137-141
Author(s):  
Petya Yordanova – Dinova
Keyword(s):  
Comparative Analysis ◽  
Financial Management ◽  
Financial Stability ◽  
Business Environment ◽  
Innovative Approach ◽  
Financial Sustainability ◽  
The Common ◽  
The Difference ◽  
Effective Use ◽  
And Control

This paper explores the comparative analysis of the financial controlling, who is a result from the common controlling concept and the financial management. In the specialized literature, financial controlling is seen as an innovative approach to financial management. It is often presented as the most promising instrument of financial diagnostics. Generally speaking, financial controlling is seen as a process of managing the company`s assets which are valued in monetary measures. The difference between the financial management and the financial controlling is that the second covers all functions of management, analysis and control of finances, aiming at maximizing their effective use and increasing the value of the enterprise. Financial controlling is often seen as a function of the common practice of financial management. Its objective is to preserve the financial stability and financial sustainability of enterprises operating in a highly aggressive business environment.

scholarly journals THE EFFECTIVENESS OF ENSURING THE FINANCIAL STABILITY OF THE RESTAURANT BUSINESS IN THE CRISIS COVID-19

2020 ◽  
Author(s):  
Liudmyla Batchenko ◽  
◽  
Liliia Honchar ◽  
Andrii Beliak ◽  
◽  
...  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Hospitality Industry ◽  
Business Environment ◽  
Financial Indicators ◽  
Financial Condition ◽  
The Matrix ◽  
A Chain ◽  
Key Indicators ◽  
Enterprise Policy

The study identifies and systematizes key indicators and criteria for ensuring the financial stability of the restaurant business. The complex and thorough analysis of features of maintenance of financial stability of the enterprises of restaurant business on an example of one of restaurants of a chain of the Japanese kitchen of LLC «Sushiya» is carried out. After analyzing the key indicators of financial and economic activity of the restaurant, using the method of complex calculation of the rating of the financial condition of enterprises in the hospitality industry, the level of financial stability of the studied enterprise is determined. Based on the results of practice-oriented analysis, the ranking of financial management goals by the degree of impact on the financial stability of the enterprise. The mechanism of ensuring financial stability of restaurant business enterprises is modeled. The developed and substantiated mechanism is based on a unique methodology, which, unlike existing ones, is adapted to the field of hospitality, is carried out by specific tactical and strategic tools of financial management, based on the chosen type of enterprise policy; takes into account the dynamics of the main financial indicators of the enterprise, which is planned to implement the mechanism and the possible impact of factors of the external changing business environment. With the help of the matrix of financial strategies of J. Franchon and I. Romane, the position of the restaurant «Sushiya-Lavina» is determined and the methodological tools for improving the efficiency of its financial stability are substantiated.

Impact of Information and Communication Readiness on the Tourism Industry

2021 ◽  
pp. 186-201
Author(s):  
Woon Leong Lin ◽  
Bee Lian Song
Keyword(s):  
Fixed Effects ◽  
Panel Data Analysis ◽  
Tourism Industry ◽  
Policy Effects ◽  
Travel And Tourism ◽  
Economic Progress ◽  
The World ◽  
Information And Communication ◽  
World Economic ◽  
The Impact

This study examines the impact of ICT readiness on the tourism industry and how it leads to growing competitiveness by deploying three-panel data analysis techniques (pooled OLS, fixed effects, dynamic GMM) with 177 nations for the period 2011 to 2019. ICT readiness is gauged using the World Economic Forum's Travel and Tourism Competitiveness Index, whereas tourism's contribution towards economic progress is gauged by overall international traveler arrival. The observations indicate that ICT readiness causes a statistically significant effect on tourism's role in economic progress. Tourism policy effects and guidelines for future works are discussed as well.

scholarly journals Determinants of Capital Structure for Malaysian Shariah-Compliant Firms: The Impact of Revised Screening Methodology

2020 ◽  
Author(s):  
Norfhadzilahwati Rahim ◽  
Fauzias Mat Nor ◽  
Nurainna Ramli ◽  
Ainulashikin Marzuki
Keyword(s):  
Capital Structure ◽  
Financial Stability ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Large Firms ◽  
Method Of Moment ◽  
Speed Of Adjustment ◽  
Lagged Dependent Variable ◽  
Target Leverage ◽  
The Impact

This study investigates two main objectives. Firstly, the determinants of capital structure were examined for each sector among Malaysian Shariah-compliant firms, and whether the inclusion of Islamic debt (leverage 1 and leverage 2) has led to different results due to changes in the screening methodology. Secondly, this paper analyzes the target Capital Structure and Speed of Adjustment for both before and after the Revised Screening Methodology. This study employs panel data analysis by using generalized method of moment (GMM). The sample consists of 192 Shariah-compliant companies in Malaysia during the period of 1999 to 2017. The results demonstrated that the firm has target capital structure and identified specific determinants that have affected the capital structure of Shariah-compliant firms in Malaysia. Moreover, the findings have also revealed certain implications toward large firms. Large firms tend to generate more income and profit, however at the same time, these firms require more debt to support investment activities. Hence, with regards to profitability, this study identified a negative relationship between profitability and leverage for Shariah-compliant firms for all sectors. Shariah-compliant firms with high profitability will use a lower leverage in their financial activities. Thus, the results strongly support the pecking order theory. Other than that, this study found that the lagged dependent variable (lagged leverage 1 and leverage 2) presented a positive significance, and concluded that the speed of adjustment takes approximately 2 years. This suggests that the Shariah-compliant firms close approximately by 30% to 70% of the gap between current and target capital structure within one and two years. Furthermore, the findings on the target leverage level imply that after the revised screening methodology was introduced in November 2013, the speed of adjustment became faster than before the implementation of the new screening methodology. Thus, it is important for management to maintain the target leverage during financial decision making, which in turn strengthens the firm’s Shariah-compliant financial stability and sustainability, and continue to remain listed as Shariah-compliant securities. This paper provides an overview of capital structure behaviour in Malaysia.  

scholarly journals The Impact of Economic Crisis on the Financial Performance of the European Companies

Ekonomika ◽  
2019 ◽  
Vol 98 (2) ◽  
pp. 6-18
Author(s):  
Nicoleta Barbuta-Misu
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Panel Data Analysis ◽  
Labour Productivity ◽  
Business Environment ◽  
Financial Accounting ◽  
Annual Data ◽  
Factors Affecting ◽  
Financial Firms ◽  
The Impact

Financial-accounting information plays an important role in assessing and forecasting firms’ financial performance. But besides that, there are other external factors affecting the firm’s performance, such as the economic and financial crisis that causes imbalances over the economy and affect the business environment. Thus, based on financial statements data, in this paper, the determinants of financial performance are examined and also the impact of financial crisis on these factors is analysed using the fixed and random effects panel estimators. For this research it was used a sample of non-financial firms from European countries considering annual data from 2006 until 2015. The results achieved by panel data analysis show that crisis exerts a significant positive effect over financial performance as well as liquidity, assets turnover and labour productivity inducing that firms tend to do higher efforts to keep financial performance in face of a crisis. Financial performance is significantly and negatively influenced by leverage independently of the crisis effect showing that return on assets is lower than average interest rate.

scholarly journals COVID-19 as a challenge to the Economics, society and Politics

2020 ◽  
Vol 11 (3) ◽  
pp. 250-265
Author(s):  
A. N. Kuriukin
Keyword(s):  
Financial Stability ◽  
Political Action ◽  
Three Dimensions ◽  
Modern World ◽  
Negative Effects ◽  
Interdisciplinary Approaches ◽  
The World ◽  
Asset Class ◽  
Restrictive Measures ◽  
The Impact

Purpose: to consider in detail the impact of the COVID-19 pandemic on the modern world, in relation to three dimensions – the economy, society. Politics, to outline the most problematic points of negative effects generation, to propose directions for the restoration of the world system within the framework of the formation of a new post-COVID-19 ”normality”.Methods: includes the principles of systemic, theoretical-cognitive, institutional, instrumental and interdisciplinary approaches, mediated by the accepted in social science ideas about the relationship and interaction of subjective and objective factors in social processes with relative independence of the subject.Results: today, the world around us and human civilization, together with the impressive process of globalization, has entered the stage of the emergence of new challenges that were not previously presented to it or were not manifested so powerfully. The first of these challenges of the current 21st century is undoubtedly the COVID-19 pandemic. Today it is stated that, according to the most optimistic estimates, the fall of the world economy may exceed the crisis of 2008–2009. In terms of social practices and communications, COVID-19 is already forcing us to design a new “normality” that will become a reality in the post-COVID-19 era. In the field of politics, it is stated that in authoritarian and authoritarian regimes, a more effective public response to restrictive measures was ensured.Conclusions and Relevance: at the present stage, the market and the signals it gives, by asset class, recession and recovery patterns, should be closely monitored not only by economists, but also by sociologists. political scientists, politicians and public figures. Urgent and decisive political action is needed not only to contain the pandemic and save lives, but also to protect the most vulnerable in our society from economic collapse and to maintain economic growth and financial stability.

Impact of COVID-19 on the perception of Indian investors towards investment in equity fund

2020 ◽  
Vol 07 (03) ◽  
pp. 2050040
Author(s):  
Kishore Kumar Das ◽  
Rupsa Mahapatra
Keyword(s):  
Economic Crisis ◽  
Financial Stability ◽  
Equity Fund ◽  
Consumer Durables ◽  
The World ◽  
Fast Moving Consumer Goods ◽  
World Nation ◽  
One Year ◽  
In The Beginning ◽  
The Impact

During the post demonetization and GST, Indian economy was struggling continuously to recover from the economic crisis. In the financial year 2019–2020, GDP rate fell from 7% to 5.4% which is about 18.20%. BSE Sensex index was 42273 as on January 20th of 2020 but on April 8, 2020, it was 29894. During the Financial year 2019–2020, a reduction of 26% in mid cap index was observed, but at the same time, sensitive index reduced by 22%. These things affect the share market and financial stability of people. The stock market over the last one-year became volatile and crashed. To handle the downwards economy, Government took the initiative and announced deep tax cuts for businesses in the month of August 2019. But in the beginning of the year 2020, there was another sluggish phase which stubborn the economy. This time, it was a virus, named as COVID-19(coronavirus), which created a pandemic situation and spread all over the world. Nation-wide lock down was announced to fight with COVID-19 as there was no vaccine introduced. Starting from agriculture to textile, apparel, automotive, aviation, hotels and restaurants, poultry, chemicals, consumer durables, entertainment, sports, FMCG (fast moving consumer goods), pharmaceutical, ecommerce, IT and moreover corporate sectors were adversely affected due to this pandemic and lock down rules. Therefore, this paper focuses on the impact of corona on the perception of Indian investors towards investment in equity fund.

ASSESSMENT OF BUSINESS ENVIRONMENT DEVELOPMENT PERCEPTION UNDER THE INFLUENCE OF COVID-19: THE CASE OF LATVIA

2020 ◽  
Author(s):  
Andra Zvirbule ◽  
Gunta Grinberga-Zalite ◽  
Aina Muska
Keyword(s):  
Business Environment ◽  
Objective Data ◽  
Economic Sectors ◽  
Environment Changes ◽  
Logical Construction ◽  
The World ◽  
Regional Location ◽  
Data Grouping ◽  
The Impact ◽  
Business Sectors

Not only macroeconomic growth scenarios and forecasts but also business environment assessments and development forecasts have changed as a result of the worldwide COVID-19 pandemic. Many of the forecasts are based on objective data on the performance of economic sectors; however, some of them are based on business perceptions or business sentiment assessments. There is no doubt that these perceptions and business sentiment assessments differ within business sectors and according to size of the company, regional location and type of business. The aim of the research is to identify and provide an assessment of the business environment development perceptions in the COVID-19 situation in Latvia and compare them with business sentiment assessments from other countries. Specific tasks of the research: to collect information on business environment changes in Latvia in the COVID-19 situation; to compile business perceptions of the impact of COVID-19 on the business environment in the world and in Latvia; to identify the perceptions of the business environment in the most important business sectors in Latvia. Methods: monographic, data grouping, logical construction and mathematical and statistical analysis. The research identified business environment changes in business sectors in Latvia under COVID-19’s influence and business perceptions of the impact of COVID-19 on the business environment for the next 6 months. Based on the research, the authors have drawn conclusions about the future development of the business environment and have identified the sectors that will be negatively affected by the COVID-19 crisis in the coming months.

Addressing Financial Risks and Uncertainties Through Financial Literacy Education

2021 ◽  
pp. 437-456
Author(s):  
Danielle McKain
Keyword(s):  
Climate Change ◽  
Stock Market ◽  
Financial Literacy ◽  
Financial Stability ◽  
Literacy Education ◽  
Financial Instability ◽  
Financial Risks ◽  
Increased Risk ◽  
The World ◽  
The Impact

The world is full of financial risks and uncertainties even for those who have financial literacy. There are many factors to consider when planning financially: the stock market, hyperinflation, and climate change all play roles and are unpredictable. This chapter will focus on the actions that are being taken to establish financial literacy across the world and the impact these actions have on individual financial stability. Although financial literacy certainly cannot eliminate the risks and uncertainties that accompany unforeseen events, it is one way to prepare for these events. Even in times of normalcy, lack of financial literacy can put individuals at an increased risk of financial instability. This chapter presents a variety of recommendations and resources for financial literacy education as well as the risks and uncertainties that accompany their use.

scholarly journals Impact of the Covid-19 Pandemic on Entrepreneurial Capacity and Financial Security in Ukraine

2021 ◽  
Vol 126 ◽  
pp. 08002
Author(s):  
Yana Derbenova ◽  
Ganna Kashyna ◽  
Serhii Leontovych ◽  
Olena Ablova ◽  
Oksana Dmitrieva ◽  
...  
Keyword(s):  
Financial Stability ◽  
System Analysis ◽  
Negative Impact ◽  
Business Activity ◽  
Financial Security ◽  
Economic Activities ◽  
Investment Activity ◽  
The World ◽  
Business Entities ◽  
The Impact

The article analyzes the impact of the COVID-19 pandemic on business activities in Ukraine and the world and its financial security. The analysis showed that the economy of Ukraine and most countries of the world suffered significant losses from the introduction of anti-epidemic restrictions on business activity, which turned out to be in the fall of GDP, index of industrial production investment activity. Because of temporary or complete shutdown of business the unemployment rate increased significantly. The pandemic crisis also negatively impacted the financial results of enterprises, which decreased significantly in all kinds of economic activities, especially in industry, transport, temporary accommodation and catering, where the share of unprofitable enterprises reaches 73%. Thus, the problem of ensuring the financial security of business becomes relevant. The aim of the work is to develop methodological approaches to assessing the impact of the pandemic crisis on the financial security of business and to identify effective ways of ensuring such security. In the process of research methods of scientific abstraction, comparative and system analysis and synthesis, systematization and logical generalization were used. It was determined that the pandemic affected small and medium businesses most of all, where a strong negative impact was experienced by more than 60% of entrepreneurs. Large businesses were less affected, but they also suffered significant losses due to the decline in business activity and demand in the domestic and foreign markets. Agriculture was least affected by the pandemic, which suffered the least losses, primarily due to the insignificant impact of restrictions affecting the activities of this business. The paper systematized the risks arising from the factors of the pandemic crisis, identifying their manifestations and financial implications for business. As shown by the research, such consequences are manifested in the form of full or partial loss of profits, problems with debt repayment, reduction of financial stability, liquidity, increase in accounts receivable, increased costs for anti-epidemic measures, etc. Thus, the procedure for assessing the business’s financial security is to take into account all factors that shape the financial situation of business entities during a pandemic crisis in a comprehensive manner.

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