scholarly journals Achieving Portfolio Diversification for Individuals with Low Financial Sustainability

2020 ◽  
Vol 12 (17) ◽  
pp. 7073
Author(s):  
Yongjae Lee ◽  
Woo Chang Kim ◽  
Jang Ho Kim
Keyword(s):  
Financial Stability ◽  
Portfolio Diversification ◽  
Financial Sustainability ◽  
Individual Investors ◽  
Financial Assets ◽  
Portfolio Returns ◽  
Investment Size ◽  
Mean Variance Portfolio ◽  
The Relationship ◽  
Mean Variance

While many individuals make investments to gain financial stability, most individual investors hold under-diversified portfolios that consist of only a few financial assets. Lack of diversification is alarming especially for average individuals because it may result in massive drawdowns in their portfolio returns. In this study, we analyze if it is theoretically feasible to construct fully risk-diversified portfolios even for the small accounts of not-so-rich individuals. In this regard, we formulate an investment size constrained mean-variance portfolio selection problem and investigate the relationship between the investment amount and diversification effect.

scholarly journals Evaluation and analysis of factors influencing the financial sustainability of engineering enterprises

2019 ◽  
Vol 18 (3) ◽  
pp. 1-11 ◽  
Author(s):  
Maryna Berest ◽  
Ljubov Merenkova
Keyword(s):  
Financial Stability ◽  
State Level ◽  
Negative Influence ◽  
Engineering Industry ◽  
Financial Sustainability ◽  
Financial Assets ◽  
Financial Status ◽  
Net Profit ◽  
Factors Of Influence ◽  
Selection Of

Financial sustainability is one of the most important characteristics of an enterprise's financial position. It determines the level of the company independence from external entities and sources of financing, and, in turn, is conditioned by a set of multifaceted factors. In the case of negative influence of the external environment, engineering enterprises require research and selection of factors of influence on financial sustainability, which are formed in the internal environment of their functioning. The content analysis of definitions of the "financial stability of an enterprise" concept is carried out. Given the analysis results, the key informative characteristics of the enterprises are emphasized, such as state and structure of financial resources, solvency and profitability of the enterprise. In the context of selected areas and based on comparative analysis of literature sources and methods recommended at the state level for assessing the enterprise financial status, the study has formed a list of coefficients, the calculation and analysis of which is appropriate in evaluating assessment of financial enterprises. Using regression analysis, the study has revealed factors that most significantly influence the level of financial sustainability of engineering enterprises. It is established that the level of financial stability of the mechanical engineering industry enterprises in Kharkiv region is mainly influenced by the level of security of current liabilities of enterprises with financial current assets, the ability of enterprise assets to generate net profit and the share of equity in the financing sources structure. Therefore, to ensure the financial sustainability of engineering companies, management should take measures to ensure that they have a sufficient level of financial assets to cover their current liabilities and to optimize financial results in the context of increased net profit.

scholarly journals Marketing technologies increasing financial sustainability at SA "Tomai-Vinex"

2021 ◽  
Author(s):  
Inna Dimitroglo ◽  
Keyword(s):  
Financial Stability ◽  
Financial Sustainability ◽  
Marketing Technology ◽  
The Relationship

The profitability, profitability, and, consequently, the financial stability of the company as a whole depends on the efficiency, correctness, and timeliness of marketing technologies. However, without knowing its financial capabilities, the company cannot make decisions in the field of marketing. Therefore, it is important to investigate the relationship between marketing technology and financial sustainability.

scholarly journals Frameworks of evaluation of the influence of prices’ dynamics on financial sustainability of enterprises in a supply chain

2021 ◽  
Vol 20 (2(48)) ◽  
pp. 198-212
Author(s):  
O. Р. Gorlova
Keyword(s):  
Supply Chain ◽  
Sunflower Oil ◽  
Financial Stability ◽  
Financial Sustainability ◽  
Sunflower Seeds ◽  
Factors Affecting ◽  
Different Types ◽  
Complex Measurement ◽  
The Relationship ◽  
Final Consumer

The article addresses the study of the relationship between the dynamics of product prices and the financial stability of the focal enterprises within a supply chain. Accelerating the changes of the external environment leads to an increasing need of new management instruments to save and develop an enterprise. Ensuring financial sustainability is an important task for each enterprise, particularly in the context of the parameters’ variability of the multidimensional environment. Financial sustainability directly depends on the profit and profitability of an enterprise, which gives grounds for finding the relationship between the financial sustainability indicators of an enterprise and inputs and outputs prices, as factors affecting profit. This study focuses on supply chains for the production and sale of sunflower oil. This type of economic activity is constantly in the spotlight of domestic scientists, as Ukraine's share in world production of sunflower oil is about 34%, and in world exports - more than 55%. An enlarged approach to the structure of the supply chain is used in this study. The following links in the domestic market of Ukraine were identified: producer of agricultural products (sunflower seeds), sunflower oil manufacturer, and final consumer. The analysis carried out in the study demonstrates that some parameters of the enterprise’s financial sustainability show the different types of response to the prices’ change that have been witnessed within the supply chain. That is a reason of the desirability of the further researches on the influence of prices’ dynamics on financial sustainability of focal enterprises in a supply chain. Besides, the further study of this theme will contribute to improving the methodology of complex measurement of the enterprise’s financial sustainability.

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.

Dynamic mean-variance portfolio analysis under model risk

2009 ◽  
Vol 12 (4) ◽  
pp. 91-115 ◽  
Author(s):  
Daniel Kuhn ◽  
Panos Parpas ◽  
Berç Rustem ◽  
Raquel Fonseca
Keyword(s):  
Portfolio Analysis ◽  
Model Risk ◽  
Mean Variance Portfolio ◽  
Mean Variance

Mean-Variance Portfolio with Generalized EMA and Anomaly Detector

2016 ◽  
Author(s):  
Masafumi Nakano ◽  
Akihiko Takahashi ◽  
Soichiro Takahashi
Keyword(s):  
Anomaly Detector ◽  
Mean Variance Portfolio ◽  
Mean Variance

The financial stability of corporations: theoretical aspect

2018 ◽  
Vol 34 (1) ◽  
pp. 161-165 ◽  
Author(s):  
M. V. Zhukova
Keyword(s):  
Financial Market ◽  
Financial Stability ◽  
Theoretical Aspect ◽  
Financial Sustainability ◽  
Effective Demand ◽  
Internal Factors ◽  
The Many

Financial sustainability of corporations is an important multifactorial phenomenon that determines the competitiveness, solvency and capacity of the corporation to innovation and expanded reproduction. In connection with the complex and multipartite financial stability of corporations, the many writers who studied in this field, have different conceptual approaches to the interpretation of this financial category. The financial stability of corporations depends on external and internal factors, priority of which are: competition in the corporate segment, as effective demand for the products, factors and tendencies of development of the financial market.

Financial Sustainability and Infrastructure Finance

2018 ◽  
Author(s):  
Felipe Carvalho de Rezende
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Financial Sustainability ◽  
Infrastructure Finance ◽  
Strategic Role ◽  
Development Banks ◽  
The Global Financial Crisis ◽  
Capital Development

Among the lessons that can be drawn from the global financial crisis is that private financial institutions have failed to promote the capital development of the affected economies, and to dampen financial fragility. This chapter analyses the macroeconomic role that development banks can play in this context, not only providing long-term funding necessary to promote economic development, but also fostering financial stability. The chapter discusses, in particular, the need for public financial institutions to provide support for infrastructure and sustainable development projects. It concludes that development banks play a strategic role by funding infrastructure projects in particular, and outlines the lessons for enhancing their role as catalysts for mitigating risks associated with such projects.

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