Modeling the aggregate risk of common stockholder through the determined financial model

2021 ◽  
Vol 27 (9) ◽  
pp. 1934-1961
Author(s):  
Nadezhda V. USHAKOVA ◽  
Anna L. SABININA ◽  
Aleksandr S. VASIN ◽  
Sergei I. GAIDARZHI
Keyword(s):  
Critical Analysis ◽  
Comparison Method ◽  
Financial Model ◽  
Financial Modeling ◽  
Leverage Ratio ◽  
Aggregate Risk ◽  
Net Profit ◽  
Chi Squared ◽  
Modified Formula ◽  
Reporting Data

Subject. The article focuses on methods for modeling and quantifying the risk associated with common stockholders. Objectives. We perform a critical analysis and study how the existing risk assessment methods can be modified. The article demonstrates strengths and advantages of the determined financial model. Methods. The study is based on methods of the discourse analysis, mathematical statistics, financial modeling. Results. If the entity receives payments out of net profit, we show the modified formula for assessing the aggregate leverage and suggest using the term financial leverage in Russian. The chi-squared comparison method reveals the need to respect aggregate leverage restrictions. We also present formulae for assessing its minimum and maximum. In this study, we provide a broader view of the financial mentality as a concept, quantify to what extent the decision-maker is prone to risk. Conclusions and Relevance. The advisable aggregate leverage fits in the interval, which should be specifically assessed for each entity, and can be determined by official reporting data through the proposed formulae. Managing common stockholders’ risk pursues to maintain the aggregate leverage ratio within its maximum and minimum. This task can be solved by modifying the structure and ratio of fixed and variable costs.

scholarly journals Comparative Analysis of Financial Performance Upon Automotive Companies Registered in BEI

2021 ◽  
Vol 2 (3) ◽  
pp. 882-817
Author(s):  
Ninik Mas'adah ◽  
Ira Megasyara ◽  
Amrizal Imawan ◽  
Rizky Wahyudha Rosiawan
Keyword(s):  
Time Series ◽  
Time Series Analysis ◽  
Financial Performance ◽  
Comparison Method ◽  
Cross Sectional ◽  
Leverage Ratio ◽  
Series Analysis ◽  
Net Profit ◽  
Quantitative Descriptive ◽  
Turn Over

This research was conducted to determine the financial performance of automotive companies listed on the IDX for the period 2012 to 2015. This type of research is a quantitative descriptive study, with a total population of 13 companies and a sample of 6 automotive companies that have been selected from the population with using purposive sampling method. The data analysis method used is a comparison method consisting of a cross sectional approach and time series analysis. The results show that the results of calculations using the cross-sectional approach, automotive companies in Indonesia for the 2012-2015 period experienced fluctuations and experienced a decline in the industry average at the end of 2015 and many automotive companies were in unhealthy condition in the 2012-2015 period. Based on the results of time series analysis of automotive companies in 2012-2015, it is known that the Total Assets Turn Over has decreased, the results on Net Profit Margin have decreased, the results on the current ratio have decreased, the result of the leverage ratio has increased. The management of automotive companies in Indonesia needs to increase investment in assets, because if the level of liquidity is high but the investment in assets is small, the money or cash available will only be stored and have less value for the company.

Higher Order Neural Network for Financial Modeling and Simulation

2016 ◽  
pp. 761-788
Author(s):  
Partha Sarathi Mishra ◽  
Satchidananda Dehuri
Keyword(s):  
Neural Network ◽  
Financial Market ◽  
Lower Number ◽  
Stock Index ◽  
Financial Model ◽  
Functional Link ◽  
Swarm Optimization ◽  
Financial Modeling ◽  
For Profit ◽  
Financial Gain

Financial market creates a complex and ever changing environment in which population of investors are competing for profit. Predicting the future for financial gain is a difficult and challenging task, however at the same time it is a profitable activity. Hence, the ability to obtain the highly efficient financial model has become increasingly important in the competitive world. To cope with this, we consider functional link artificial neural networks (FLANNs) trained by particle swarm optimization (PSO) for stock index prediction (PSO-FLANN). Our strong experimental conviction confirms that the performance of PSO tuned FLANN model for the case of lower number of ahead prediction task is promising. In most cases LMS updated algorithm based FLANN model proved to be as good as or better than the RLS updated algorithm based FLANN but at the same time RLS updated FLANN model for the prediction of stock index system cannot be ignored.

scholarly journals Analisis Kinerja Keuangan berdasarkan Rasio Keuangan pada PT. BPR. Saptacristy Utama

2017 ◽  
Author(s):  
NI LUH KOMANG AYU PRADNYANI ◽  
I NYOMAN GEDE USTRIYANA ◽  
I GUSTI AYU AGUNG LIES ANGGRENI
Keyword(s):  
Financial Performance ◽  
Activity Ratio ◽  
Financial Analysis ◽  
Financial Institution ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Return On Equity ◽  
Leverage Ratio ◽  
Capital Adequacy Ratio ◽  
Net Profit

Analysis of Finece Performance Base on Fund Finance Ratio of PT. BPR. Saptacristy UtamaRural Banks (BPR) is a formal financial institution that has a function as a financialintermediary, especially on the national microfinance system. The study aimed tofind out the financial performance of PT. BPR. Saptacristy Utama when it wasanalyzed based on the financial ratios during the period of 2011 to 2015. Based onthe results of the financial analysis, liquidity ratio is categorized good, when viewedfrom the average cash ratio and the average loans to deposit ratio. The solvency ratiois said to be good, judging by the average capital adequacy ratio. Activity ratio isquite good when viewed from the multiplier leverage ratio and asset utilization ratiothat continue to increase. The profitability ratio is classified to be good,as can beseen on the average net profit margin, return on assets and return on equity. PT. BPR.Saptacristy Utama is expected to maintain its financial performance by strengtheningits business activities to increase the amount of its assets, the amount of thedistribution of funds in the form of loans and the placement of funds in other banksshould also be increased, revenue of operations and profits for subsequent yearsshould beincreased, as well as improving sale and service to its customers andprospective customers.

ANALISIS FAKTOR – FAKTOR AKUNTANSI YANG BERPENGARUH TERHADAP RETURN ON INVESMENT PADA PERUSAHAAN INDUSTRI YANG TERDAFTAR DI BURSA EFEK INDONESIA

2018 ◽  
Vol 12 (2) ◽  
Author(s):  
Koko Denik Wahyudi
Keyword(s):  
Return On Investment ◽  
Profit Margin ◽  
Leverage Ratio ◽  
Net Profit ◽  
Turn Over

Analisis kinerja keuangan perusahaan adalah penting, hasil penelitian terdahulu hasinya bervarian, karena banyak faktor yang dapat mempengaruhi, yaitufaktor-faktor tempat, faktor ekonomi, faktor politik, faktor waktu, indikator variabel yang dianalisis, faktor ukuran perusahaan, jenis perusahaan dan lain-lain. Hal iniadalah yang menarik untuk diteliti terus dan dikembangkan sehingga mendapatkan banyak referensi tentang penelitian kinerja keuangan perusahaan.Penelitian ini bertujuan untuk menjawab (1) Apakah variabel-variabel Ratio Likuiditas, Ratio Leverage, Ratio aktivitas dan Ratio Profitabilitas secara simultandan secara parsial berpengaruh signifikan terhadap Return on investment (ROI) dan (2) Variabel mana yang mempunyai pengaruh paling kuat terhadap Return oninvestment (ROI). Sampel  dalam penelitian ini  terdiri dari 9 perusahaan industri makanan dan minuman yang terdaftar di bursa efek selama tahun 1994 – 2011.Laporan keuangan yang diamati adalah laporan keuangan selama periode tahun 1994 – 2011. Analisis yang digunakan adalah analisis linier berganda.Hasil Analisis menunjukan bahwa  (1) Secara simultan faktor – faktor likuiditas, aktivitas, laverage dan profitabilitas berpengaruh  secara signifikanterhadap Return On Investmen (ROI) perusahaan. (2) Secara simultan variabel Current Rasio, Laverage Rasio, Inventory Turn Over, Assets Turn Over, dan NetProfit Margin berpengaruh secara signifikan terhadap Return On Investmen (ROI) perusahaan. (3) Variabel yang pengaruhnya terkuat terhadap Return On Investmen(ROI) perusahaan adalah Net Profit Margin.

FAKTOR FUNDAMENTAL YANG MEMPENGARUHI PERUBAHAN HARGA SAHAM (Studi Empiris pada Perusahaan Finansial yang Terdaftar Di BEI Tahun 2009dan 2010)

2015 ◽  
Vol 10 (1) ◽  
pp. 16
Author(s):  
Norita Citra Yuliarti
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Profit Margin ◽  
Share Price ◽  
Current Ratio ◽  
Leverage Ratio ◽  
Earnings Per Share ◽  
Net Profit ◽  
Turn Over

This study aims to examine the fundamental factors of Current Ratio (CR), Leverage Ratio, Net Profit Margin (NPM), Total Assets Turn Over (TATO), Earnings Per Share(EPS)effect on stock price changes on financial companies in Indonesia . The share price is the value of a stock that reflects the wealth of the company issuing the shares, which change or fluctuation is largely determined by the forces of supply and demand occurred in the stock exchange (secondary market). The influence of these factors on stock prices is tested with regression analysis. Study sample is 40 companies listed on the Indonesian stock exchange are selected by purposive sampling.The results of this study indicate that the partial net profit margin of only variable that significantly influence the stock price, while the variable current ratio, leverage ratio, total assets turnover and earnings per shareno significant effect on stock prices. While simultaneously variable Current Ratio (CR), Leverage Ratio, Net Profit Margin (NPM), Total Assets Turn Over (TATO), Earnings Per Share(EPS)significantly influence the stock price. These results indicate that investors in making investment decisions take into consideration the level of stock prices, returns that would be obtained and also consider the ability of illiquid instruments (funds from third parties, received a loan of more than three months, and core capital) against liabilities (current debt ) company. Keywords: Stock Price, Current Ratio(CR), LeverageRatio, Net ProfitMargin(NPM), TotalAssetsTurn Over(TATO), Earnings Per Share(EPS)

scholarly journals Financial stability of investment and construction projects in terms of project financing

2019 ◽  
Vol 138 ◽  
pp. 02021
Author(s):  
Marina Mishlanova
Keyword(s):  
Control System ◽  
Life Cycle ◽  
Financial Stability ◽  
Construction Projects ◽  
Construction Project ◽  
Project Financing ◽  
Financial Model ◽  
Financial Modeling ◽  
Special Purpose Vehicle ◽  
Implementation Stage

The paper determines the relevance and purpose of the study. The characteristic and functions of a special purpose vehicle of project financing are presented. The conditions of project lending are described. The ways of ensuring financial stability of the investment and construction project at various stages of its life cycle are considered. At the preinvestment stage, the financial model and budget of the project are considered as a mechanism for ensuring the sustainability of the project. The directions of normative and methodological support for effective financial modeling and project budgeting in the context of project financing are identified. At the implementation stage, a cost control system for the investment and construction project was developed. A formal decomposition of the control system under study is proposed, and a functional description of the subjects of control is presented. The conditions of preserving the project within the budget and adaptive management of investment and construction projects are considered.

scholarly journals Assessing the Financial Distress Risk of Companies Operating Under Conditions of a Negative Cash Conversion Cycle

e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 72-82
Author(s):  
Aleksandra Szpulak
Keyword(s):  
Financial Distress ◽  
Applied Research ◽  
Theory And Practice ◽  
Financial Model ◽  
Financial Modeling ◽  
Cash Conversion Cycle ◽  
Distress Risk ◽  
Financial Liquidity ◽  
Liquidity Measures ◽  
Definition Of

Abstract The purpose of the paper is to point out the accounting-based variables and relationships between them which enable us to measure financial liquidity in a way appropriate for assessing the financial distress risk of companies operating under conditions of a negative Cash Conversion Cycle (CCC). Contrary to the mainstream literature on bankruptcy predictions, mainly based on data modelling nested in statistics, in this article the approach is taken on modelling the bankruptcy process relevant for companies operating under conditions of negative CCC. The applied research methodology adopts Monte Carlo simulations based on a spreadsheet financial model of company operations built to simulate operating cash inflows and outflows generated by companies operating under negative CCC (following a methodology of a spreadsheet approach to financial modeling and risk analysis given by Charnes (2007)). To define financial liquidity measures the concept of Net Liquid Balance (Shulman & Cox, 1985) and cash investment in Operating Working Capital (Szpulak, 2014) is applied. The results enable us to overcome the insufficiency of existing financial liquidity indicators for assessing the financial distress of companies operating under conditions of negative CCC. The additions to theory and practice consist of theoretical underpinnings of a financial distress mechanism possible for companies operating under conditions of negative CCC and definition of financial liquidity measures relevant for these companies.

scholarly journals FINANCING OF INVESTMENT ACTIVITIES OF UKRAINIAN TELECOM COMPANIES

2017 ◽  
pp. 246-252
Author(s):  
Halyna Otlyvanska
Keyword(s):  
Financial Markets ◽  
Comparison Method ◽  
Economic Benefits ◽  
Investment Activity ◽  
Financing Policy ◽  
Technological Gap ◽  
Net Profit ◽  
Telecommunication Companies ◽  
Observation Method ◽  
Intensive Development

Introduction. Ukrainian telecommunication companies operate simultaneously in complex and unstable social and economic conditions. Currently the majority of domestic subscribers have a low level of effective demand. These factors are the main barriers for the effective financing of telecom providers’ investment activity. The purpose of the paper is to determine the conditions and trends of investment activity financing of the three Ukrainian telecommunication companies: Kyivstar, MTS Ukraine and Ukrtelecom. Method (methodology). The method of observation, method of comparison, method of generalization, method of grouping and index scientific method have been applied in the article. Results. The financing of the investment activity of the two largest telecommunication companies in Ukraine, Kyivstar and MTS Ukraine, whose results are stable and effective, is carried out by a self-financing policy. On one hand, the depreciation, amortization, and net profit are accumulated and these companies run the lowest risk of investment activity financing. On the other hand, the companies do not avail themselves of the opportunities to get financing from financial markets and implement it for more intensive development. This policy limits the basis for future economic benefits. In contrast, Ukrtelecom runs more significant risks in financing of investment activity. It actively pursued loans, credits and bonds. However, this policy is not effective because such investments are not enough to overcome the technological gap caused by constant innovation. In addition, internal problems exist.

scholarly journals Excel Based Financial Modeling for Making Portfolio Management Decisions

2019 ◽  
Vol 11 (2(I)) ◽  
pp. 35-41
Author(s):  
Sree Rama Murthy
Keyword(s):  
Standard Deviation ◽  
Portfolio Selection ◽  
Portfolio Management ◽  
Correlation Coefficients ◽  
Sharpe Ratio ◽  
Powerful Method ◽  
Management Decisions ◽  
Financial Model ◽  
Financial Modeling ◽  
Using Data

The Excel based financial model proposed in this paper provides a very simple but powerful method for portfolio selection. Apart from a simple and powerful tool for making portfolio management decisions, the paper also proposes an easy to use technique for calculating portfolio standard deviation without using correlation coefficients. The model uses “Excel Solver Add-In” to create an optimum portfolio by maximizing the Sharpe ratio. Benefits of Sharpe style optimization are demonstrated using data on monthly returns from 1999 to 2010 covering 30 stocks.

Higher Order Neural Network for Financial Modeling and Simulation

2016 ◽  
pp. 440-466 ◽  
Author(s):  
Partha Sarathi Mishra ◽  
Satchidananda Dehuri
Keyword(s):  
Neural Network ◽  
Financial Market ◽  
Lower Number ◽  
Stock Index ◽  
Financial Model ◽  
Functional Link ◽  
Swarm Optimization ◽  
Financial Modeling ◽  
For Profit ◽  
Financial Gain

Financial market creates a complex and ever changing environment in which population of investors are competing for profit. Predicting the future for financial gain is a difficult and challenging task, however at the same time it is a profitable activity. Hence, the ability to obtain the highly efficient financial model has become increasingly important in the competitive world. To cope with this, we consider functional link artificial neural networks (FLANNs) trained by particle swarm optimization (PSO) for stock index prediction (PSO-FLANN). Our strong experimental conviction confirms that the performance of PSO tuned FLANN model for the case of lower number of ahead prediction task is promising. In most cases LMS updated algorithm based FLANN model proved to be as good as or better than the RLS updated algorithm based FLANN but at the same time RLS updated FLANN model for the prediction of stock index system cannot be ignored.

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