scholarly journals THE IMPACT OF INVESTMENT CLIMATE AND FINANCIAL ANALYSIS IMPLICATIONS IN MAKING INVESTMENT DECISIONS

2019 ◽  
Vol 129 (6) ◽  
pp. 143-152
Author(s):  
Olena V. Arefieva ◽  
Iryna M. Miagkyh ◽  
Nadiia V. Solovei
Keyword(s):  
Financial Management ◽  
Financial Analysis ◽  
Investment Decisions ◽  
Critical Element ◽  
Investment Efficiency ◽  
Investment Climate ◽  
Enterprise Development ◽  
Development Trends ◽  
Investment Activity ◽  
The Impact

The paper attempts to expose the most favourable conditions for domestic enterprises to be to competitive in manufacturing and selling of competitive goods and products and thus have prospects for further effective development. The study provides insights into the economic nature of enterprise financial management basics as well as explores the processes of financial and economic activities to reveal the key indicators dynamics for production and sales, product supply patterns, to measure the effects from external and internal factors of change over a certain period, to identify the reasons for change and justify the enterprise development trends, together with building pathways to boost the enterprise performance. A thorough study on the roots of investment, investment activity, investment attractiveness and the factors that affect the stability of enterprise business development and investment activity enhancement have been conducted. The findings also present the results of an in-depth study on the investment climate specifics and impact factors that shape the investment climate in Ukraine. The analysis of investment attractiveness of the national businesses and the factors affecting alternative investment projects have been performed. Based on the research results, the paper offers a generalized investment solutions framework as well as suggests the criteria that facilitate effective investment decision making. In this study, financial analysis is viewed as a critical element within the overall crisis management system to ensure investment efficiency and identify enterprise development trends as well as the reasons for change and to be able to justify the enterprise further development prospects. The conclusions provide recommendations for making effective investment decisions.

scholarly journals Liquidity as a criterion for optimizing the structure of the enterprise’s current assets

2019 ◽  
pp. 16-19
Author(s):  
Natalia KOVALCHUK ◽  
Maia FEDYSHYN ◽  
Artur ZHAVORONOK
Keyword(s):  
Financial Management ◽  
Financial Analysis ◽  
Initial Conditions ◽  
Optimal Structure ◽  
Normative Values ◽  
Effective Management ◽  
Enterprise Development ◽  
Management Decisions ◽  
Domestic Enterprise ◽  
The Impact

The article investigates the optimization current assets structure of the enterprise. The assets of the company are one of the most important objects of financial management, because the condition and efficiency of their use affects the level of profitability of business activities. Undoubtedly, management decisions on current assets are characterized by a greater degree of maneuverability, which reinforces the need for increased attention to managing this type of assets. The purpose of the article is to scientifically substantiate the theoretical and practical principles of applying the liquidity criterion in optimizing the structure of current assets of the enterprise, to determine the impact of the applied criterion on the efficiency of use of current assets and their components. Decisions to improve the management of current assets should be based on key criteria, taking into account the state of the enterprise, the results of the financial analysis, which are the basis for making effective management decisions. In our opinion, one of the important criteria that determines the solvency of an enterprise is liquidity. At the enterprise under study, the liquidity indicators are not within the normative values. The proposed optimal structure of current assets, determined on the basis of ensuring the normative values of liquidity indicators, has demonstrated its effectiveness. The result of the optimization was an increase in the turnover of current assets and an increase in the efficiency of their use. Current assets forecast should become a must for financial work in every domestic enterprise. Different variants of the structure should be forecasted according to the selected criteria, based on the goals of the enterprise development and the initial conditions of its functioning.

scholarly journals (The impact of financial performance assessment on the quality of banking performance An applied study on the Commercial Bank of Chad in the Republic of Chad for the period (2008-2013: أثر تقويم الأداء المالي على جودة الأداء المصرفي دراسة تطبيقية على مصرف شاري التجاري بجمهورية تشاد للفترة (2008-2013م)

2017 ◽  
Vol 1 (6) ◽  
Author(s):  
Mohammed Bukhari Hassan Ali
Keyword(s):  
Commercial Bank ◽  
Financial Distress ◽  
Financial Management ◽  
Financial Analysis ◽  
High Ratio ◽  
Bank Loans ◽  
General Classification ◽  
The Republic ◽  
The Impact

The study addressed the issue of the quality of financial Shari commercial bank management and the extent of their relationship to the funding of competence, to see how the quality of financial management, and to identify its transparency when granting credit, and to identify the general classification of the bank on CAMELS index of the banking classification. Study the problem in the following questions: Are the financial and credit policies of the bank bank?. It is that the bank actually applied followed in the granting of credit financial procedures? Is bank financing of the bank efficient? Is that the bank applied to all financial regulations and decisions of the Organization of the banking business? The study sought to analyze and test the hypotheses: The bank's reliance on financial analysis to rationalize decisions granting Alaitmat lead to the efficiency of the funding. The Bank’s general classification in term of quality, liquidity adequacy, financial level of default and loan-to deposit ratio are within the good classification. The Chari commercial Bank's performance is good. Used in the study are: descriptive analytical method and the historical approach in addition to the deductive approach. The study reached the following findings: The results of the study that there is a positive relationship between the quality of financial management bank (Shari) commercial financing and efficiency, the bank loans relative to deposits above the industry the desired level standard, the bank in case of default Mali due to the high ratio of non-performing loans and by passed the industry standard, the bank is suffering from an acute shortage of liquidity, causing falter in the bank's operations. The most important recommendations of the study: the need for Shari Commercial Bank to measure and find out the loans to deposits ratio and liquidity of the bank continuously to meet the obligations and withdrawals daily is expected, should the bank not to grant loans only after making sure it fits with deposits and ensure liquidity of the bank to avoid potential financial distress, the need to seek to provide all types of banking services offered by the rest of the workforce in the country's banks.

scholarly journals Lalabet Financial Analysis: Study of Islamic Economics at Micro Level

2021 ◽  
Vol 4 (1) ◽  
pp. 233-244
Author(s):  
Ainorrofiqie Ainorrofiqie ◽  
Umrotul Khasanah ◽  
Akhmad Djalaluddin
Keyword(s):  
Financial Management ◽  
Financial Analysis ◽  
Financial Statements ◽  
The Body ◽  
Short Term ◽  
The Family ◽  
Micro Level ◽  
The Impact ◽  
The Village

This research aims to explore the model of financial management tradition Lalabet in the village of Babbalan District Batuan Sumenep. This study is based on the fact that occurred in the community about the implementation of traditions carried out by the heirs to family members who died. Interpretative qualitative research is used and an in-depth understanding of a problem that occurs is emphasized more. Based on the results of this study, the financial management tradition Lalabet can be done based on accounting equations. The accounts contained in the accounting equation is not used in its entirety and are reported as are generally financial statements. In this case, the source of funds in carrying out Lalabet tradition is sourced from personal money, money and donations from the family, money from Muslimat, debt, and money or goods from Lalabet's proceeds. The impact is the onset of debt both short-term and long-term. While the expenditure is in the form of costs in taking care of the body, costs for tahlilan (petto'arean), pa'polo, nyatos, nyataon, nyaebu, mangaji, ngin-tangin, nyalenin mayyid, and ajege makam (kep-sekep).

scholarly journals Financial Flexibility as an Investment Efficiency Factor in Asian Companies

2018 ◽  
Vol 20 (2) ◽  
pp. 137 ◽  
Author(s):  
Victoria Cherkasova ◽  
Evgeny Kuzmin
Keyword(s):  
Investment Efficiency ◽  
Small Companies ◽  
Investment Activity ◽  
Financial Flexibility ◽  
Investment Expenditure ◽  
Institutional Economic ◽  
The Difference ◽  
Debt Capacity ◽  
The Impact ◽  
Capacity Method

This study explores the impact of a company’s financial flexibility on the effectiveness of its investments.The number of companies that have financial flexibility was calculated with the application of thespare debt capacity method. The research identifies the impact of financial flexibility on investment activity and on the level of suboptimal investments. The data from 1,736 companies in theAsian region, during the 2005-2015time period, are presented. The Asian region has unique institutional, economic and commercial environments that present a great basis for this paper. The results of the research reveal that financially flexible companies spend more on their investment expenditure and conduct more effective investment policiesby reducing the level of over- and underinvestment. Financial flexibility helps companies to make effective investments during a crisis period, but the difference in the flexibility between developed and developing countries and between large and small companies was not observed.

Finance and Financial analysis

2021 ◽  
Author(s):  
Rossiyskoy Minobrnauki
Keyword(s):  
Professional Education ◽  
Financial Management ◽  
Financial Analysis ◽  
Point Of View ◽  
Basic Knowledge ◽  
Federal State ◽  
Master's Students ◽  
Financial Condition ◽  
State Educational ◽  
The Impact

The textbook systematizes basic knowledge in the field of finance, financial analysis and financial management, presented in their direct relationship and significance from the point of view of evaluation, diagnosis, forecasting and monitoring of the continuity of the organization's activities. It includes seven chapters grouped into three sections. The first section is devoted to the theoretical foundations of the organization's financial management, stakeholders and sources of the organization's activities. The second section discusses the basics of financial analysis, providing knowledge of the main directions, information base and methods of financial analysis, as well as allowing them to be applied reasonably, calculate and evaluate analytical indicators, determine the impact of globalization processes, various macro-and microfactors on the financial condition of the organization. The third section contains the basics of financial management, providing an understanding of the essence of the financial mechanism of the organization and algorithms for justifying decisions in the field of financial management. It complies with the federal state educational standards of higher education of the latest generation and provides the formation of basic competencies in the field of finance, financial management and financial analysis. For bachelor's, specialist's and master's students studying in the field of Economics, the system of additional professional education, training centers for advanced training of auditors and other financial market specialists, as well as for individual preparation of applicants for qualification certification and passing qualification exams.

The impact of board characteristics on corporate investment decisions: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Regression Analysis ◽  
Board Of Directors ◽  
Investment Decisions ◽  
Corporate Investment ◽  
Independent Directors ◽  
Investment Efficiency ◽  
Content Type ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
The Impact

Purpose The purpose of this study is to investigate the influence of board characteristics on firms’ investment decisions. Design Methodology Approach The study used data sourced from annual reports of firms listed on the Ghana Stock Exchange from 2014 to 2018. Descriptive analysis was performed to provide the background statistics of the variables examined. This was followed by a regression analysis which forms the main data analysis. Findings The multiple regression analysis results indicated that the proportion of independent directors and financial experts on the board are negatively related to firm investment. These findings imply that independent directors and financial experts on the board can help firms reduce overinvestment and improve investment efficiency. Originality Value The extant literature shows that the board of directors are an effective mechanism to reduce agency problems in firm decisions and operating performance. However, there has been little research on the role of the board of directors in corporate investment policy.

scholarly journals Pengaruh Status Quo, Herding Behaviour, Representativeness Bias, Mental Accounting, serta Regret Aversion Bias terhadap Keputusan Investasi Investor Milenial di Kota Surabaya

2021 ◽  
Vol 9 (2) ◽  
pp. 779
Author(s):  
Syifa Aulia Mahadevi ◽  
Nadia Asandimitra Haryono
Keyword(s):  
Structural Equation ◽  
Investment Decisions ◽  
Mental Accounting ◽  
Equation Model ◽  
Status Quo ◽  
Snowball Sampling ◽  
Herding Behavior ◽  
Investment Activity ◽  
Regret Aversion ◽  
The Impact

Investment activity in Indonesia steadily increases as more people become aware of the investment's value and potential returns. This study aims to determine the impact of status quo bias, herding behavior, representation, and mental accounting on the investment decisions of millennial investors in Surabaya. This study is conclusive because it used purposive and snowball sampling techniques to obtain samples by distributing online questionnaires—the research sample as many as 241 respondents. The analysis technique uses Structural Equation Model (SEM). This study focuses on millennial investors registered with the Indonesian Central Securities Depository (KSEI) and securities firms in Surabaya. The findings suggest that the variables status quo and regret aversion significantly bias investment decisions, whereas herding behavior, representativeness, and mental accounting do not affect investment decisions. Thus, this study can assist various parties, particularly millennial investors, pay more attention to their biases and be more cautious when making investment decisions

scholarly journals Mine, Yours or Ours? The Efficiency of Household Investment Decisions: An Experimental Approach

2020 ◽  
Vol 34 (3) ◽  
pp. 575-596
Author(s):  
Anandi Mani
Keyword(s):  
Household Income ◽  
Experimental Approach ◽  
Social Norm ◽  
Investment Decisions ◽  
Developed Countries ◽  
Investment Efficiency ◽  
Income Share ◽  
Persistent Effect ◽  
Household Resources ◽  
The Impact

Abstract This article sheds light on the impact on household investment efficiency of a social norm that a man should not earn less than his wife. The experiment distinguishes this impact from that of spouses’ desire for control over household resources. Both husbands and wives are found to sacrifice household income (efficiency) for greater control; but, consistent with this social norm, husbands alone behave inefficiently if assigned a smaller income share than their spouse. The evidence suggests spiteful behavior among such husbands: they are willing to undercut their own income to narrow the gap with their wives’ earnings. The magnitude of husbands’ inefficiency influenced by this social norm is comparable to that when husbands have the least control over household earnings. These results, taken together with evidence from developed countries, show that this social norm has a persistent effect on household efficiency, distinct from spouses’ economic concerns.

Effect of the global financial crisis on the financial performance of public listed construction companies in Malaysia

2014 ◽  
Vol 19 (3) ◽  
pp. 246-263 ◽  
Author(s):  
Hui Ying Lai ◽  
Abdul Rashid Abdul Aziz ◽  
Toong Khuan Chan
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Financial Management ◽  
Capital Investment ◽  
Global Financial Crisis ◽  
Financial Analysis ◽  
Content Type ◽  
Construction Companies ◽  
The Government ◽  
The Impact

Purpose – The aim of this case study is to characterize the impact of the 2008 global financial crisis on the financial performance of public listed construction companies. Design/methodology/approach – Financial analysis was conducted on 32 public listed construction companies in Malaysia. Twelve financial ratios were examined to determine the profitability, liquidity, activity, leverage and solvency of these companies over the period between 2005 and 2010. This was complemented by a distress analysis using Altman’s Z-index. The study also used a content analysis of the Chairman’s or Managing Director’s statement to shareholders to uncover the responses and strategic initiatives undertaken by the management in response to the financial crisis. Findings – The only direct impact of the financial crisis was a reduction in profitability. Total revenues and total assets of these companies continue to grow due to increased demand for construction from year 2007 following two large capital investment programs initiated by the Malaysian Government to mitigate the potential effects of the financial crisis. Net profits rebounded back to 5 per cent by year 2010. These companies immediately responded to the crisis with more prudent financial management; curtailing expenses, cutting dividends, reducing bank borrowings, increasing equity; and to the extent of disposing of assets to mitigate losses. Research limitations/implications – The sample of only 32 public listed companies out of a total of more than 60,000 construction companies may be considered small, but these 32 companies represent nearly 20 per cent of the total construction volume for 2010. Practical implications – The study documents the effects of increased capital spending by the government to mitigate the loss of investor confidence followed by a slowdown in economic growth during a period of global financial distress. Key findings will inform on prudent financial management to withstand future financial crises. Originality/value – The responses and strategies adopted by the management to mitigate the effects and to enhance future performance of these companies have been uncovered. These are important considerations in managing construction companies; the analysis and observations will be invaluable to researchers intending to study how the construction industry responds to a future slump in demand.

scholarly journals The Impact of Monetary Policy Shocks on Corporate Dynamic Investment Activity With Financial Heterogeneity

SAGE Open ◽  
2021 ◽  
Vol 11 (1) ◽  
pp. 215824402098868
Author(s):  
Mahbuba Aktar ◽  
Mohammad Zoynul Abedin ◽  
Anupam Das Gupta
Keyword(s):  
Monetary Policy ◽  
Investment Efficiency ◽  
Cash Holding ◽  
Monetary Policy Shocks ◽  
Investment Activity ◽  
Public Firms ◽  
Study Approach ◽  
Policy Shocks ◽  
Monetary Policy Shock ◽  
The Impact

This article assesses the differential reactions of firms’ investment to monetary policy shocks based on various financial heterogeneity measures, such as leverage and cash holdings. It applies U.S. public firms’ panel data from the sample period 1990Q1 to 2007Q4 and high-frequency event-study approach. Low-leverage and high cash holding firms react more to monetary policy shocks explaining the different investment activities. For the high-leverage and low cash holding firms, the two monetary policy shock variable interactions are statistically insignificant. However, they are statistically significant for the low-leverage and high cash holding firms. During a contractionary monetary policy period, higher cash holding firms improve investment efficiency. This article strengthens the literature of corporate investment behavior which can assist advance and optimize macrocontrol policies.

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