The Value of the Company and Sustainable Development

The aim of the study is to attempt to systematize the concept of economic value that takes into account elements of sustainable development. At the same time, it is the voice in the ongoing discussion on the purpose and methods of valuation of the company's value. The measure of strength of each enterprise is its value expressed in monetary units. Due to differences in the results of the valuation of enterprises made by groups of experts representing such disciplines as finance, taxes, or marketing, there was a need to identify sources and to analyze more precisely the resulting discrepancies. The values of the enterprise should include both measurable and hard to measure values, which largely differentiate economic units from each other. The need for a wider perspective on the data published by enterprises appeared along with new business models, changes in consumer trends, environmental regulations, or the impact of social media.

Education and Theory of Psychological and Cognitive Barriers

The author identifies the psychological and cognitive barriers (PCBs) in the students' consciousness in schooling as the very important factor of the contemporary education system crisis. Focusing on the unresolved “how to learn” problem, the author reveals the essence of PCBs, their causes, and models for overcoming them. At the same time, the main attention is paid to the social aspect of insurmountable PCBs at school. It is about the education failure of schoolchildren, which predetermines their life and professional failure. And this, in turn, predetermines their negative value orientation in social exchange. As a result, the society receives a low-quality educational component of human capital, which is less and less in demand on the labor market due to the technological challenges of the future. The PCBs overcoming creates conditions for the success of schoolchildren as future carriers of high-quality human capital, able to ensure stable economic growth thanks to the activities of highly educated and intellectually autonomous professionals.

Mysteries of Unsustainable Public Finance and of Low Economic Growth

The authors structure the main functions of the state in the economic system as the “famous triad” of R. Musgrave. They are connected with allocating resources, redistributing income (equality in income distribution), and stabilizing economy (economic efficiency). The aim is to find the causes of their low efficient implementation by the state. This is manifested in the fact that society itself does not have the ability to adequately control the current activities of the state created and put over it in order to protect its interests; in the contradictory essence of the state itself, which is the regulator, which forms the rules of behavior of economic agents and at the same time acts as the economic agent participating in market transactions. To model the options for the effective resolution of the problems of the “magic triangle,” the authors formulated the Musgrave uncertainty principle by analogy with the Heisenberg uncertainty principle in physics. This makes it possible to assess the budget expenditures of the state in order to get out of its low efficiency trap.

Shock Theory

The purpose of this chapter is connected with the rationale for the approach to understanding shock as an economic phenomenon in terms of its nature and forms of manifestation, the conditions of aging and the factors of realization, the mechanism of self-development, and the consequences for the sustainability of the national financial and economic systems. The author's interest is initially aimed at identifying the circumstances in which the system loses its ability to restore sustained structural relationships and to preserve integrity in the sphere of national finance and economy. An approach allowing the identification of the transmission mechanisms connected with market exchange that can generate marginal states of economic structural links as necessary and sufficient conditions for the destructive shocks impact on them is identified. Based on the obtained theoretical conclusions, it becomes possible to model the marginal states of different structural relationships and evaluate their impact on the sustainable state of economic systems as a whole on the base of shock theory.

The Concept of Shared Value in the Theory of Sustainable Finance

The main purpose of this chapter is to identify the existing relations between the selected areas of sustainable development but carried out on the basis of the indicators describing the macroeconomic dimension of this development from the OECD countries' perspective. The theoretical basis for analyses is the concept of shared value, for the first time presented by Porter and Kramer in 2011. In this chapter, this proposition was applied to the studies carried out on the country level. For this purpose, the multidimensional statistical analysis was applied. The results of the study confirmed that on the current level of development, even in the case of the most developed countries, it is very difficult to find the shared space with the same level of development between these areas. In the same time, it is very important direction of further research and decisions undertaken on the macroeconomic level.

Strategic Corporate Decision Making With Market and Liquidity Risk Management

This chapter examines a practical methodology for the assessment and control of market and liquidity risk exposures for financial trading portfolios that consist of certain equity assets. The applied technique is based on the contemporary concept of liquidity-adjusted value at risk (LVaR) along with the application of optimization risk-engine algorithms. This chapter proposes a broad market and liquidity risk management model that can concurrently perform LVaR estimation under regular and stressed market scenarios. It takes into account the effects of illiquidity of traded equity assets. In order to demonstrate the appropriate application of LVaR and stress-testing techniques, real-world case analysis of trading risk management are presented for the Gulf Cooperation Council (GCC) stock markets. To this end, a number of optimization case studies are examined with the aim of developing a novel technique of trading risk measurement as well as the implementation of a risk optimization process for the computation of the maximum permitted LVaR limits.

Challenges and Opportunities of the Sustainability in Healthcare

Public health, affecting the operations of the entity and its environment, plays an important role in the concept of sustainable development. Health condition affects the quality of life of the individual thus the condition of the economy. Taking into consideration the complex relationship of public health and the concept of Sustainable Development Goals, the analysis seems to be fully justified. The aim of the analysis is to determine challenges and opportunities of the sustainability of selected United Nations Member States healthcare sectors. Particular emphasis in the analysis was placed on the situation of the Polish sector against the background of the analyzed countries. The analysis was based on the Sustainable Development Goals and was carried out using one of the MCDA method.

Investment Appraisal of Sustainability Projects

This chapter is an attempt to review the existing approaches in appraising sustainability projects using the conventional approaches of net present value (NPV) and introduce the modified forms of NPV (i.e., net present sustainable value [NPSV]). The chapter also elucidates on the prominent characteristics of sustainability projects and the inadequacy of traditional financial tools in appraising the same. Consequently, the need to transition from using only time value of money as in payback period approach to include opportunity costs as in NPV and furthering this approach to broaden the capital theory of sustainability by including both the time value of money and the opportunity costs has been strongly advocated. In addition to controlling the time value of money, risk-adjusted NPV measures are effective in evaluating sustainability projects. For assessment of renewable energy projects, real option analysis is suggested as an effective measure.

Does Financial Development Lead to Employment and Growth?

Financial systems, which play a major role in the development of the economy, are primarily helping to fund flow and assist in capital increase. In this study, frequency domain causality test, which was developed by Geweke and Hosoya and developed by Breitung and Candelon, was used to analyze the causality relationship by short, medium, and long periods. This test, which provides periodical examination, was investigated to determine the effect of G7 countries on employment and growth of financial institutions and markets index used to calculate financial development index. Among the G7 countries, the development of financial markets and institutions has been affecting employment in Canada (short-medium), Germany (medium-long), Japan (short-medium-long), and the UK (medium-long); in addition, when the effects of economic growth on financial markets and institutions are investigated, Canada (short-medium), France (medium), Italy (medium-long), America (medium-long), Germany (medium-long), Japan (short-medium-long), and UK (short-medium-long) were determined by analysis.

General Overview to Enterprise Risk Management With Its Key Components and Determinants From the Management Perspectives

Enterprise Risk Management (ERM) is a comprehensive and holistic approach to risk management, requiring the determination, assessment and management of risks in an integrated and systematic manner. ERM has been considered as a financial, and accounting-based tool used to assess and manage the risks an organisation faces and to meet the compliance requirements of creditors, rating agencies, regulators and stock exchanges. Although ERM is widely examined by internal audit and finance scholars, ERM researches from management and strategy perspectives are limited in the literature. The purpose of this chapter is to provide a comprehensive overview of ERM including ERM concepts and definition of the risks and categorisation of risks surrounding the organisations. Moreover, the chapter handles how the risk management evolved into ERM. The distinguishing components of ERM (pillars) and the leading factors and motivation for ERM adoption (determinants) are presented.