INDEX METHOD FOR CALCULATION OF LIMITS FOR WORKING CAPITAL FINANCING

Credit Line ◽

Analysis And Synthesis ◽

Capital Financing ◽

The article considers the factors causing the formation of credit limits. There has been carried out a review of methodological approaches to analysis of credit limits described in domestic economic literature, as well as applied in practice. The advantages and disadvantages of existing methods of determining credit limits have been revealed. It has been pointed out that nowadays in the theory and practice of banking there is no generally accepted method for setting limits. On the basis of the financial model, the nature of the working capital needs of customers and its impact on the need for lending were investigated. The ratios of net working capital and own working capital are considered depending on the nature of the need, financial cycle, business profitability and conditions of settlements with counterparties. A calculation of the working capital need based on the index method is proposed. The methods for calculating the limit of working capital with temporary and permanent working capital need are substantiated. There have been made calculations of the working capital need for options characterized by increasing volumes in production and sales and by changing the terms of settlements with counterparties. The relationship between the revenue growth and the required net working capital is shown. The dynamics of own working capital growth is analyzed. Using the results, the calculation of the limit for revolving financing has been made including a one-time loan for replenishing working capital and a revolving credit line with a debt limit due to the constant need for materials procurement. In the course of analysis there were used general scientific methods and techniques: systemic and logical analysis and synthesis, comparison, building a system of indicators based on vertical and horizontal relationships between them, studying the relationship between effective (generalizing) indicators and quotients, forecasting and extrapolation, the principles of induction and deduction.

Features of agricultural enterprises taxation system in Ukraine and directions for its improvement with consideration of foreign experience

University Economic Bulletin ◽

10.31470/2306-546x-2018-39-29-37 ◽

2018 ◽

pp. 29-37

Author(s):

Natalia Novak ◽

Svetlana Koval ◽

Elena Krukovskaya

Keyword(s):

Rural Areas ◽

Structural Changes ◽

The United States ◽

Theory And Practice ◽

Main Function ◽

Agricultural Enterprises ◽

Foreign Experience ◽

Analysis And Synthesis ◽

Taxation System

The subject of the research is the processes and systems of taxation of agricultural enterprises, their components and principles; types and amounts of taxes in Ukraine and abroad; trends of development and possible directions of improvement. The aim of the work is to identify the peculiarities of taxation of agricultural enterprises, its principles, advantages and disadvantages for the purpose of further improvement, including on the bases of studying and taking into account foreign experience. The methodological basis of the article became general scientific methods of cognition, - system-structural analysis and synthesis, dialectical, historical, abstraction. Also, these methods are generalization, grouping, comparison, absolute and relative values, other methods of research. Results of work.It is determined that the systems, mechanisms and processes of taxation of agricultural enterprises in Ukraine are in development. They require significant improvement to optimize their inherent functions. In fact, the fiscal function is traditionally prevailing in terms of distribution and regulatory factors. For this purpose, the main types of taxes and their volumes were characterized, changes in the Tax Code were assessed, the main principles, tasks and necessary structural changes in the taxation system were determined. The experience of subsidizing, insurance and taxation of agribusiness in the United States and European countries has also been studied and summarized in detail. The forms and mechanisms of tax support for small and medium-sized agricultural enterprises are especially valuable for the domestic theory and practice. The field of application of results. The results of the research can be used in the theory and practice of accounting and taxation of agrarian enterprises, management of their financial results, development of development strategies for the future, justification of the state agrarian and tax, regulatory and regional policies, with the support of the development of rural areas and local communities. Conclusions. The taxation systems of agricultural enterprises in Ukraine have certain features in terms of the components, size and principles of collection. They often change in order to improve, but the main function is fiscal. Therefore, the study and, if possible, the introduction of advanced world experience in stimulating, insurance and taxation of agricultural production, with a view to optimizing it in the long term, is of great importance.

Crowdfunding as a modern form of financing

Finance and Credit ◽

10.24891/fc.27.1.22 ◽

2021 ◽

Vol 27 (1) ◽

pp. 22-40

Author(s):

Elena B. STARODUBTSEVA ◽

Marina B. MEDVEDEVA

Keyword(s):

Comparative Analysis ◽

Financial Market ◽

Banking System ◽

Public Confidence ◽

Analysis Techniques ◽

Analysis And Synthesis ◽

Capital Financing ◽

Modern Form ◽

Stable Development

Subject. The article considers the specifics of crowdfunding as a digital platform, on which basis participants attract and invest funds in the global financial market, as well as the relationships between the participants of this process. Objectives. We focus on positive and negative features of crowdfunding as a financial innovation, its place and role in modern investment activities. Methods. The study draws on methods of logical, statistical analysis and synthesis, and comparative analysis techniques. Results. The performed analysis of relevant works enabled to define the concept of crowdfunding, crowdfunding platform, show advantages and disadvantages of this type of financing, identify its functions, and make a comparative analysis of modern forms of financing, such as venture capital financing, business angels, and crowdfunding. The paper highlights and analyzes the participants of the crowdfunding process, the forms of income, the main subtypes of crowdfunding, depending on the forms of generated income, crowdinvesting in particular. Conclusions. Crowdfunding, as a platform for attracting funds, is possible only if there is public confidence in the financial and banking system, and stable development of the economy. On the other hand, there should be trust and reliable cooperation between all participants of this process.

Advances in Logistics, Operations, and Management Science - Ethical and Sustainable Supply Chain Management in a Global Context ◽

Relationship Between Working Capital Management and Supply Chain Management

10.4018/978-1-5225-8970-9.ch011 ◽

2019 ◽

pp. 168-184 ◽

Cited By ~ 1

Author(s):

Seda Süer

Keyword(s):

Supply Chain ◽

Supply Chain Management ◽

Capital Requirements ◽

Capital Management ◽

Working Capital ◽

Working Capital Management ◽

Chain Management ◽

Accounts Payable ◽

Capital Financing ◽

One of the firm's financial objectives is to minimize the time between making the payment for inputs and receiving payment for the outputs – the period for which working capital financing is required in the supply chain management process. In an attempt to reduce the level of working capital, a firm has to achieve some goals: to minimize cash available, reduce accounts receivables, extend its accounts payable, and shorten inventory days. To achieve these goals supply chain activities should be related with working capital requirements. The aim of this chapter is to provide an overview of the relationship between supply chain management and working capital management. A theoretical framework is proposed as an evidence to prove the relationship between supply chain activities and working capital components. Consequently, this chapter investigates how improvements on working capital components can add value to the supply chain process.

Upgrading the financial model of corporate lending in the agri-industrial complex to replenish working funds

Finance and Credit ◽

10.24891/fc.26.4.931 ◽

2020 ◽

Vol 26 (4) ◽

pp. 931-946

Author(s):

V.A. Rakhaev

Keyword(s):

Balance Sheet ◽

Feasibility Studies ◽

Cash Flows ◽

Industrial Complex ◽

Financial Model ◽

Index Method ◽

Factors Analysis ◽

Analysis And Synthesis ◽

Lending Decisions ◽

Method Factors

Subject. Lending transactions always imply terms of lending for the bank and the borrower. Modeling lending processes, users can evaluate terms of lending transactions, efficiency of lending projects and the borrower’s ability to repay a loan. Objectives. I substantiate the approach to setting a financial model of the AIC lending so that entities could replenish their working funds. Methods. The study is based on general research methods, such as a systems and logic analysis and synthesis, principles of induction and deduction, techniques of higher financial computations. In the analytical part, we apply the balance sheet method, financial ratios, feasibility studies. The data were analyzed and summarized through the correlation of resultant and partial indicators, index method, factors analysis and forecasting. Results. I reviewed the existing lending methodology and methods that banks use for lending. The literature mainly focuses on the design, principles and distinctions of financial models for lending from perspectives of borrowers. In the proposed financial model, lending is viewed from perspectives of banks. The model describes terms of a lending transaction, computes banks’ earnings on interests under loan agreements, additional financial terms of loans. I suggest applying the technique for assessing the effective margin adjusted for predicted proceeds from the transaction and the loan balance. I outline a mechanism for using financial covenant to assure the borrower fulfill terms of the deal. Conclusions and Relevance. Computations will be made more accurately if the production and financial operations of the borrower is considered in the predicted period and the way they influence terms of lending. There should be a correlation among the financial position, cash flows and demand for loans. Banks can use the model to assess terms of lending transactions and make lending decisions.

On the Calculation of Functional Safety Parameters of Technical Systems

International Journal of Mathematical Engineering and Management Sciences ◽

10.33889/ijmems.2020.5.3.042 ◽

2020 ◽

Vol 5 (3) ◽

pp. 507-517

Author(s):

Igor B. Shubinskiy ◽

Leonid A. Baranov ◽

Aleksey M. Zamyshliaev

Keyword(s):

Transition Probabilities ◽

Operator Method ◽

Markov Operator ◽

Distribution Functions ◽

Theory And Practice ◽

Functional Safety ◽

Critical Systems ◽

Analysis And Synthesis ◽

Programmable Devices

Now the scientific methodology is created, the theory and practice of the analysis and synthesis of functional safety of responsible electronic programmable devices and systems at all stages of their life cycle are developed. The basics of the methodology are fixed by standards. Methods of analysis and synthesis of functional safety are strictly formalized. They are based on the calculations of functional safety indicators with respect to failures of constituent elements and, especially, dangerous and protective failures of the system. Known methods of calculation are focused on determining the intensity and probability of dangerous failures. The objective of the proposed method lies in the fact that, in graph form, without resorting to the solution of the system of equations in the operator transformations to establish the distribution function of time until the threat or security failure, or any unhealthy condition of the system. These distribution functions determine all the necessary indicators of mean time (and, if necessary, the variance of this time) to a dangerous or protective failure. The proposed semi-Markov (Markov) operator method allows to solve a number of problems of calculation and prediction of functional safety of critical (responsible) systems. The method is formalized and suitable for subsequent computer implementation. This fact testifies to the expediency of further development of graph methods, convenient for the study of the safety of complex critical systems, devoid of the shortcomings of the proposed method in terms of the complexity of the preparatory work to determine the analytical expressions of transition probabilities in the Laplace - Stieltjes transformations. The given example of using the method has an independent value – it allows you to assess the advantages and disadvantages of ensuring functional safety by building a two-channel system without restarting the channels

Comparative advantages of Bulgarian production and exports

Balkans Journal of Emerging Trends in Social Sciences ◽

10.31410/balkans.jetss.2018.1.1.22-39 ◽

2018 ◽

pp. 22-39

Author(s):

Vera Pirimova

Keyword(s):

Foreign Trade ◽

Statistical Methods ◽

Competitive Advantages ◽

Index Method ◽

Theoretical Concepts ◽

Global Competitiveness ◽

Methods Of Analysis ◽

Comparative Advantages ◽

Analysis And Synthesis

The present study focuses on the analysis of the competitiveness and the comparative advantages of Bulgarian production and exports. It is structured in two parts. The first part summarizes the positions of Bulgaria in the index of global competitiveness and the more important criteria related to foreign trade. In the second part some theoretical concepts for comparative competitive advantages are systematized. Out of them the indices of B. Belasa and M. Amir have been chosen and calculated and on this basis the conclusions about the comparative advantages and disadvantages of the Bulgarian production and export of certain commodities and commodity groups, manifested in 2012-2016, are drawn. Stepping on these conclusions the possibilities for expanding or restricting the export of specific commodity groups and for increasing the competitiveness of the Bulgarian economy are systematized. In this research mathematical and statistical methods are applied, mostly the index method, along with methods of analysis and synthesis.

Working capital financing, firm performance and financial constraints

International Journal of Managerial Finance ◽

10.1108/ijmf-02-2018-0036 ◽

2019 ◽

Vol 15 (4) ◽

pp. 464-477 ◽

Cited By ~ 5

Author(s):

Nufazil Altaf ◽

Farooq Ahmad

Keyword(s):

Firm Performance ◽

Financial Constraints ◽

Emerging Market ◽

Generalized Method Of Moments ◽

Working Capital ◽

Content Type ◽

Capital Financing ◽

Financing Performance ◽

The Impact ◽

Purpose The purpose of this paper is to examine the relationship between working capital financing and firm performance for a sample of 437 non-financial Indian companies. In addition, this study examines the impact of financial constraints on working capital financing–performance relationship. Design/methodology/approach The study is based on secondary financial data of 437 non-financial Indian companies obtained from Capitaline database, pertaining to a period of 10 years (2007–2016). This study employs two-step generalized method of moments techniques to arrive at results. Findings Results of the study confirm the inverted U-shape relationship between working capital financing and firm performance. In addition, the authors also found that the firms that are likely to be less financially constrained can finance greater proportion of working capital using short-term debt. Originality/value This study contributes to the scant existing literature by testing the impact of financial constraints on the relationship between working capital financing and firm performance, representing a typical emerging market in India.

ANALYSIS OF THE RELATIONSHIP AND INTERACTION BETWEEN STRATEGY AND ORGANIZATION LIFE CYCLE IN THE CONTEXT OF PROJECT ACTIVITY

International scientific journal Internauka Series Economical Sciences ◽

10.25313/2520-2294-2021-7-7448 ◽

2017 ◽

Author(s):

Inna Hordieieva ◽

Keyword(s):

Life Cycle ◽

Organizational Development ◽

Competitive Strategies ◽

Senior Managers ◽

Organization Management ◽

Scientific Discussion ◽

Urgent Task ◽

Analysis And Synthesis ◽

The article summarizes the arguments and counterarguments within the scientific discussion on the relationship and interaction between competitive strategy and the phases of the organization's life cycle. The main purpose of the study is to analyze the influence of choice or change of strategy on changing phases of the organization's life cycle in the context of project activities. The method of analysis and synthesis, the method of systematization and analysis of literature sources were used to solve the tasks. The scientific community faces the urgent task of developing and implementing effective methods, models, and methodologies of adaptive project management. The toolkits for solving this scientific problem are the management of managed changes in the organization, management of organizational development by methods of strategic planning. Based on the analysis of different models of the life cycle of organizations, it is determined that the most perfect is the model of I. Adizes. A similar analysis was performed on the typologies of competitive strategies. It is determined that the most rational for further research in the ratio of advantages and disadvantages is the model A. Yu. Yudanov. Systematization of literature sources and approaches to solving the problem testified to the existence of developments in this scientific field, but the review process revealed a number of contradictions that need further resolution. The identified inconsistencies are mostly due to the fact that not all dependencies and correspondences are found between the types of competitive strategies and phases of the organization's life cycle. The practical value lies in the improvement of models and methods of organization adaptation to the destructive factors of the environment, justification of the choice of strategic goals by stages of the life cycle, the formation of project tools for change management in the organization. Next, it is planned to assess the level of correlation of parameters for each type of strategy according in accordance with each phase of development of the organization. The results of the study can be useful for project and program managers, senior managers.

Investment in IT as a Priority Area of Economic Development in Ukraine

Scientific Bulletin of Mukachevo State University Series “Economics” ◽

10.52566/10.52566/msu-econ.8(2).2021.25-34 ◽

2021 ◽

Vol 8 (2) ◽

pp. 25-34

Author(s):

Hoar A. Hevorhyan ◽

Svitlana O. Kushnir

Keyword(s):

Economic Development ◽

Information Technologies ◽

Practical Significance ◽

Investment Climate ◽

Investment Environment ◽

Industrial Enterprises ◽

Analysis And Synthesis ◽

Modern Economic ◽

In modern economic realities, information technologies are considered the main resource of technological and socio-economic development of the country, because they are used in all spheres of society and the state, and directly affect the overall national situation. Therefore, the study and analysis of the conditions for their attraction are relevant both in Ukraine and around the world. The purpose of this study is to identify the features of attracting investment in information technologies and search for methods to improve the investment environment for this industry. For the furtherance of this goal, the following methods were used: analysis and synthesis, induction and deduction, comparison, scientific abstraction, and modelling. Within the framework of this study, an interpretation of the concepts of “investment” and “information technologies” are provided and their role and functions at the macro and micro economic levels are highlighted; the main aspects of financing and attracting money in the field of IT are considered; the main problems and prospects of investing in this area in Ukraine are identified; the dynamics of attracting investment in information technologies are analysed; methods for improving the investment environment in the field of IT are proposed. The study also analysed the financial sources of attracting investment, listed the advantages and disadvantages of each type of financing, considered the dynamics and structure of innovation at industrial enterprises of Ukraine in 2019, and established the relationship between the volume of attracted monetary investments and the introduction of innovations. In the course of the study, methods for evaluating the effectiveness of investments in the IT field were also considered, the essence, advantages and disadvantages of each of the methods were identified. The practical significance of the work lies in the fact that the results of the study can be used to develop a plan and methods for improving the investment climate in the industry, based on the analysis of its strengths and weaknesses

The State’s Role in Ensuring Fair Income Distribution in Vietnam Today: Some Issues from the Theory of Justice as Fairness by John Rawls

Tập chí Khoa học Xã hội và Nhân văn ◽

10.33100/jossh6.2.lethivinh ◽

2020 ◽

Vol 6 (2) ◽

pp. 181-195

Keyword(s):

Income Distribution ◽

Economic Efficiency ◽

John Rawls ◽

Social Stability ◽

Social Equality ◽

Justice As Fairness ◽

Theory Of Justice ◽

Analysis And Synthesis ◽

Economic Philosophy ◽

Fairness in income distribution is a factor that both motivates employees and contributes to maintaining social stability. In Vietnam, fair income distribution has been studied from various perspectives. In this article, through the analysis and synthesis of related documents and evidence, and from the perspective of economic philosophy, the author applies John Rawls’s Theory of Justice as Fairness to analyze some issues arising from the implementation of the state’s role in ensuring fair income distribution from 1986 to present. These are unifying the perception of fairness in income distribution; solving the relationship between economic efficiency and social equality; ensuring benefits for the least-privileged people in society; and controlling income. On that basis, the author makes some recommendations to enhance the state’s role in ensuring fair income distribution in Vietnam. Received 11thNovember 2019; Revised 10thApril 2020; Accepted 20th April 2020