Solvency Risk and Corporate Performance: A Case Study on European Retailers

This paper proposes a new approach toward understanding the financial performance dynamics in the EU retail sector (pre-pandemic); we focus on the connection between indebtedness and solvency risk and other areas of corporate performance (e.g., liquidity, assets efficiency, and profitability). Its contribution resides in identifying the drivers behind solvency risk in a sector that went through significant transformations in recent decades, as well as the links between the various areas of performance of retailers, and their impacts on solvency risk, using the machine-learning random forest methodology. The results indicate a declining trend for solvency risk of EU food retailers after the global financial crisis and up until the beginning of the pandemic, which may reflect their maturity on the market, but also an adjustment to legal changes in the EU, meant to equalize the tax advantages of debt versus equity financing. Solvency risk accompanied by liquidity risk is a mark of the retail sector, and our results indicate that the most critical trade that EU retailers face is between solvency risk and liquidity, but is fading over time. The volatility of liquidity levels is an important predictor of solvency risk; hence, sustaining a stable and good level of liquidity supports lower risks of financial distress, and may mitigate the shock impacts for EU retailers. A higher solvency risk was accompanied by increased efficiency of asset use, but reduced profitability levels, which led to higher returns available to shareholders for high solvency risk retailers. Overall, retailers should focus on operational performance evidenced by financial indicator levels than on the volatility of these indicators as predictors of solvency risk.

ROI as a financial and non-financial Indicator trough Applied in Application to Social Media Marketing

This study aims to develop instruments that marketers can use in developing digital marketing in their industry. The method used is applied research and constructivism point of view. Researchers conducted interviews and developed digital marketing strategies. The results of this study explain that call to action provides consumer effectiveness in purchasing products. However, it is necessary to encourage promotion through ig paid to provide a wider range of promotions. This study also explains some important things to consider in preparing the target market by analyzing customer personals and designing customer journeys.

ALGORITHM FOR COLLECTION AND ANALYSIS OF EXPERT OPINIONS TO FORM RECOMMENDATION BASE FOR MANAGING ACCOUNTING OBJECTS BASED ON FUZZY-MULTIPLE APPROACH

The subject of the study in this article is the methods associated with determining the number of experts required to collect opinions, which will be used in the future when analyzing the management object. Since the task of managing accounting objects is considered in the work, information on the correspondence of numerical intervals to the qualitative characteristics of each of the financial indicators will be collected from the experts. The proposed methodology allows one collection of expert opinions to determine the agreed intervals for each qualitative characteristic of the financial indicator, regardless of expert number of.

Sustainable housing in the Russian regions

Social living conditions and related problems are one of the key indicators of the level and rate of socio-economic development of modern society. The housing problem is characterized by several indicators: the housing deficit (quantitative indicator); high cost of housing (financial indicator); the incompatibility of the structure of the housing stock to the demographic structure of families (structural indicator); the incompatibility of existing housing stock requirements to consumer housing quality (quality indicator); the incompatibility of the requirements to maintenance condition of the housing stock (operational indicator); location of housing (infrastructure, environmental and logistics indicators). The purpose of this study is to analyze and highlight the degree of influence of the main factors on the quantitative indicators of the housing problem based on statistical data over the past few years. A statistical analysis of the impact of various factors on the price of housing in three regions of the Russian Federation is conducted. It is established that the main factor influencing the price of housing is the average per capita income of the population.

Construction and Empirical Research of Comprehensive Financial Analysis Index System Based on Cash Flow

This paper first elaborates on the importance of cash flow in building a comprehensive financial indicator system. On one hand, it is the relationship between cash flow and the assessment of the company’s solvency, profitability, and operating ability. On the other hand, it is the theoretical basis of financial analysis based on cash flow. We then introduced the construction principles of the financial analysis index system based on cash flow, and lastly analyzed the financial data of Xiaomi for empirical research.

The Impact of ERP Systems on financial Performance of Central Public Sector Enterprises Working in Mineral and Metal Sector

The Central Public Sector Enterprises have been performing vital macroeconomic objectives of a country such as economic growth, development of infrastructure, and contribute to the positive market situation. ERP Systems implementation in CPSEs working in mineral and metal sector enhances the financial performance. Financial indicator like Return on Assets, Return on invested Capital, return on equity, and Return on sale have a significant impact on ERP Adopter when it compares with ERP non- adopter working in mineral and metal sector

The Impact of Social Indicators of Economic Freedom and Poverty on Greece's GDP Index

Socio-economic indicators are usually complex indicators, i.e. they are derived from the composition of individual indicators using a method of weighting. The index of economic freedom shows us how open and friendly our country is towards 'business'. The poverty index is an indication of the standard of living of our country and it is generally considered that it can effectively reflect the various shortcomings of the population. GDP, respectively, measures, in units of money, all finished products produced annually in an economy and traded through the market. Annual GDP growth over a given period is a measure of growth. This economic growth is currently one of the most dynamic growing branches of economic science. In the research section of this paper, we examine the degree of correlation between the social indicators of Economic Freedom and Poverty with the Gross Domestic Product (GDP) financial indicator, and finally, the conclusions drawn from the processing of the correlational data are recorded for future study.

Economic model of forecasting financial condition of the enterprise

The calculation indicator of the planning model, which allows you to determine the study period in order to obtain uniform input data. This economic and mathematical model is an object that also uses a system of mathematical tools that maximizes the creation of value, taking into account additional restrictions that take into account various types of innovations, which as a result make it possible to create an innovative portfolio that most closely matches the strategy of the enterprise. , price range and the necessary resource of the innovation plan. An innovative portfolio is expressed in categories of capital prices that provide “normative” returns and investment prices in various directions. The double task shows the risk of forming an optimal portfolio. The type of restrictions allows us to formulate the condition that the income should be greater than the “normative” profitability for long-term projects. Estimates for each financial indicator allow you to compare the totality of indicators, as well as conduct comparisons with planned indications. Using this economic and mathematical model, indicators are predicted that characterize the planning, management and improvement of various aspects of the economic activity of countries. In this case, it is necessary to identify general patterns. The analysis of the financial condition of the company; identified and analyzed sources of financing in a number of years; an assessment of the enterprise circulation fund has been made; the amount of payables and receivables is determined; specific ratio of individual elements.

ASSESSMENT OF ECONOMIC SECURITY OF ENTERPRISES: THEORETICAL AND METHODOLOGICAL ASPECTS

The main objective of the study is to formulate a new approach of assessing economic security for industrial enterprises, indicating a different approach from existing ones, to allow for the very specifics of economic activity, and to allow the use of qualitative and quantitative indicators. We justified that the effectiveness of ensuring the economic security for industrial enterprises is determined by the quality of the information basis for the actions of security entities. A methodological approach is proposed that provides for the determination of the security level at three levels: “indicator – functional component – financial indicator” and allows to obtain reliable information about the economic security of oil and gas, engineering and food industries by taking into account the specifics of their economic activities.

The Impact of Diversification of Production Activities by Major Public Oil Companies on the Value of Their Shares

The studies devoted to the analysis of the diversification of production activities of the largest public oil companies andits impact on their cost do not consider production or financial factors, which are important indicators for assessing thedevelopment prospects of companies.In this article, an econometric analysis will be carried out to identify the external and internal factors affecting thecapitalization of the largest vertically integrated oil companies, and for the first time, profitability ratios for each ofthem will be used to test the hypothesis about the positive impact of diversification of activities on the upstream anddownstream segments.As a result of the study, it was found that an increase in profitability in the upstream segment leads to an increase in thevalue of oil companies shares, while profitability in the downstream segment turned out to be an insignificant factor thatnegatively affects the dependent variable.The obtained results indicate that investors are more oriented to the financial indicator related to the production sector,ignoring the refining segment, which may lead to underestimation of oil companies and subsequent adjustments of stockprices.The final conclusions can be used by investment companies and other stock market participants as part of investmentdecision making process regarding the acquisition/sale of shares of large vertically integrated oil companies.As part of the development of a study on the valuation of oil companies, it could be analyzed the influence of the factorsconsidered in the work on firms that conduct production activities separately in upstream and downstream segments.