scholarly journals Risk, Financing, Efficiency of Investments Implemented by Contemporary Enterprises

2021 ◽  
pp. 107-115
Author(s):  
Stanisław Szmitka ◽  
Keyword(s):  
Joint Ventures ◽  
Return On Investment ◽  
Intangible Assets ◽  
Free Market ◽  
Working Capital ◽  
Legal Costs ◽  
Investment Process ◽  
The Impact ◽  
Current Operating

In the broad sense, any action that is taken in the hopes of raising future revenue can also be considered an investment. An investment always concerns the outlay of some asset today – money or tangible and intangible assets – in hopes of a greater payoff in the future than what was originally put in. The investment compensates for the time of “freezing” of funds, as well as the risk taken in the investment process. Integral components in each investment process are: a) time (recovery of benefits and capital commitments); b) circulation (allocation of general or own capital); c) risk (possibility of excess of actually incurred expenses over planned costs); d) benefits (expected effects from investment realization). Investments can be defined in the light of the above factors, which are fraught with the risk of long-term allocation of investment costs in order to recover benefits. Investments are such expenditures of funds, in which there is a long-term commitment of funds of money. The scale of the costs of their performance is higher than in the current, operating activities of businesses, and the impact of investment on the efficiency of operations and competitiveness is mostly longer. Investments increase not only modernized and new means of durability, intangible and legal costs, but also the value of working capital. This work is devoted to presentation and analysis of the process of financing investments made through joint ventures in the realities of the free market in a changing environment. Considerable attention was paid to the assessment of risk and efficiency of enterprises activities. It was found that the amount of risk is influenced by various factors, such as the complexity of the investment process and the instability of the environment in which the project is implemented. This creates uncertainty about the expected future benefits and often makes it impossible to assess the factors that affect the return on investment.

Planning Sustainable Communities

2011 ◽  
pp. 90-103
Author(s):  
Paul Donehue
Keyword(s):  
Free Market ◽  
Social Sustainability ◽  
Fundamental Analysis ◽  
Sustainable Communities ◽  
Individual Behaviour ◽  
Residential Land ◽  
Resource Requirements ◽  
Legal Structures ◽  
The Impact

This chapter evaluates the impact of commodification of land and housing on the sustainability of the residential built environment. Commodification, an institutionalized practice in the western industrialized world, refers to the capacity of individuals to trade land and housing freely in the marketplace.  This practice is so commonplace that it rarely undergoes any fundamental analysis in terms of its potential impacts. In order to consider the appropriateness of commodification to sustainable communities this chapter examines its effect on three factors identified as being important to their viability: the existence of a commonly held normative framework; the capacity of a community to reinforce or discourage individual behaviour, and; the need for appropriate resource requirements.  The commodification of residential land and housing is found to encourage effects that may negatively impact upon the environmental and social sustainability of communities, and to potentially lead to their re-absorption into a less sustainable surrounding context. The paper also identifies a tendency of social and legal structures to protect the operation of the free market, which may act to undermine the capacity of communities to achieve self determination. Finally, it is suggested that the types of resources required by a community as a consequence of commodification may be inappropriate to the maintenance of long-term sustainability.

scholarly journals Free Market Institutions and FDI Performance in Emerging Asian Economies

2016 ◽  
Vol 52 (1) ◽  
pp. 43-58
Author(s):  
Klimis Vogiatzoglou
Keyword(s):  
Emerging Economies ◽  
Direct Investment ◽  
Free Market ◽  
Market Institutions ◽  
Policy Makers ◽  
Asian Economies ◽  
Institutional System ◽  
The Impact

Abstract This paper examines long-term developments in the quality and efficiency of free market institutional systems across thirteen emerging economies from South, South-east, and East Asia over the 1995–2014 period. The paper also empirically assesses the impact of free market institutions on a country’s inward foreign direct investment (FDI) performance. We find that the free market institutional framework in most economies is still relatively inefficient, restrictive, and underdeveloped but has, nevertheless, substantially improved during the last twenty-year period. Our empirical results also indicate that a free market institutional system in a host-country is a factor that attracts inward FDI to emerging Asian economies by multinational companies. Consequently, policy makers should focus on further improving the quality of free market institutions.

PENGARUH PERPUTARAN AKTIVA TETAP, HUTANG JANGKA PANJANG, DAN MODAL KERJA TERHADAP RETURN ON INVESTMENT

2020 ◽  
Vol 18 (1) ◽  
pp. 14
Author(s):  
Ubaidillah Dzaki Nabhan ◽  
Bambang Tutuko ◽  
Herwin Kurniawan
Keyword(s):  
Return On Investment ◽  
Sampling Method ◽  
Stock Exchange ◽  
Working Capital ◽  
A Value ◽  
Fixed Assets ◽  
The Relationship ◽  
Method Analysis ◽  
Capital Return

This study aims to find out how the relationship between fixed assets turnover, long term debt, and working capital to Return on Investment (ROI). The sample in this study was 35 data consisting of five transportation companies on the Indonesia Stock Exchange (IDX) from 2012-2018 using the purpose sampling method. Analysis of regression results was carried out after the model did not experience the symptoms of classical assumptions such as multicollinearity, autocorrelation, and heteroscedasticity. The research was processed using IBM SPSS Statistic software, 25,0. Based on the results of the study show that the fixed assets turnover partial shows a positive and significant value of the ROI with a value of tcount (10,699) > ttable (2,0395) and significance of 0,00 < 0,025. The next result shows that the partial long term debt negative and significant of the ROI with a value of tcount (-2,535) > -ttable (-2,0395) and significance of 0,016 < 0,025. Whereas, partially, significant working capital of the ROI  positive and significant value with tcount (2,228) > ttable (2,0395) with a significance of 0,023 < 0,025. Simultaneously have a positive and significant effect of the ROI  with Fcount (49,219) > Ftable (2,91) with a significant level of 0,000 <0,05. Keywords: Fixed Assets Turnover, Long Term Debt, Working Capital, Return on Investment  

Planning Sustainable Communities

2011 ◽  
pp. 46-58
Author(s):  
Paul Donehue
Keyword(s):  
Free Market ◽  
Social Sustainability ◽  
Fundamental Analysis ◽  
Sustainable Communities ◽  
Individual Behaviour ◽  
Residential Land ◽  
Resource Requirements ◽  
Legal Structures ◽  
The Impact

This chapter evaluates the impact of commodification of land and housing on the sustainability of the residential built environment. Commodification, an institutionalized practice in the western industrialized world, refers to the capacity of individuals to trade land and housing freely in the marketplace.&nbsp; This practice is so commonplace that it rarely undergoes any fundamental analysis in terms of its potential impacts. In order to consider the appropriateness of commodification to sustainable communities this chapter examines its effect on three factors identified as being important to their viability: the existence of a commonly held normative framework; the capacity of a community to reinforce or discourage individual behaviour, and; the need for appropriate resource requirements.&nbsp; The commodification of residential land and housing is found to encourage effects that may negatively impact upon the environmental and social sustainability of communities, and to potentially lead to their re-absorption into a less sustainable surrounding context. The paper also identifies a tendency of social and legal structures to protect the operation of the free market, which may act to undermine the capacity of communities to achieve self determination. Finally, it is suggested that the types of resources required by a community as a consequence of commodification may be inappropriate to the maintenance of long-term sustainability.

Do working capital management practices influence investment and financing patterns of firms?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahsan Akbar ◽  
Xinfeng Jiang ◽  
Minhas Akbar
Keyword(s):  
Capital Structure ◽  
Negative Relationship ◽  
Capital Management ◽  
Working Capital ◽  
Short Term ◽  
Working Capital Management ◽  
Content Type ◽  
Investment And Financing ◽  
The Impact

PurposeThe present study aims to investigate the impact of working capital management (WCM) practices on the investment and financing patterns of listed nonfinancial companies in Pakistan for a span of 10 years.Design/methodology/approachThe study is based on secondary financial data of 354 listed nonfinancial Pakistani firms during the period of 2005–2014. The two-step generalized method of moment (GMM) regression estimation technique is employed to ensure the robustness of results.FindingsEmpirical testing reveals that: excessive funds tied up in working capital have a negative impact on the investment portfolio of sample firms. Besides, a negative relationship between change in fixed assets and excess net working capital posits that, eventually, firms use idle resources tied up in short-lived assets to boost their investment activities. Furthermore, larger working capital levels were associated with higher leverage ratio which indicates that firms with inefficient WCM policies have to rely heavily on long-term debt to meet their short-term financing requirements. Additional results indicate that firms that take more time to sell inventory and convert receivables to cash, make more use of debt. Results of cash management models illustrate that cash-rich firms have lower leverage levels which signal the strong financial health and internal revenue generation capability of such firms.Originality/valueThere is a dearth of empirical studies that examine the implications of WCM decisions on a firm's capital structure. Besides, these studies are only confined to how a WCM policy influences the long-term investment activities of a firm. The research contributes to the extant literature by empirically revealing a link between the WCM practices and the firm's long-range investment and financing patterns. Hence, financial managers shall account for the impact of their short-term financial management decisions on the capital structure of the firm.

scholarly journals Working Capital Management and Its Impact on Firms’ Performance: An Empirical Analysis on Ethiopian Exporters

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Fekadu Agmas Wassie
Keyword(s):  
Return On Investment ◽  
Positive Impact ◽  
Multiple Linear Regression Model ◽  
High Volume ◽  
Capital Management ◽  
Working Capital ◽  
Return On Assets ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
The Impact

Companies may have their level of optimal working capital that maximizes their values through the effective management of current liabilities and assets. Previously, many studies were made on the impact of working capital management on the company’s performance in different sectors; however, its impact on the performance of firms that are engaged in export activities was not given any consideration and this particular study has attempted to investigate the fundamental impact of working capital management on the export firm’s performance in Ethiopia. To analyze this particular study, a total of 164 exporters operating in Ethiopia have been taken as a sample and both primary and secondary data collection methods were used. The data gathered from the sample of the study were analyzed using a multiple linear regression model and the result reveals that working capital management which was measured by account receivables period, cash conversion cycle, and accounts payable period has a statistically significant and positive correlation with the performance of exporting firms in Ethiopia which was measured by both return on assets and return on investment. However, working capital management which was measured by the inventory conversion period has a statistically significant and positive impact on return on investment, but it has an insignificant impact on the performance of sampled export firms in Ethiopia which was measured by return on assets. Based on the result of the study, firms may need to extend credit terms for customers, may prolong their cash conversion cycle, may need an extended payment period, and may or may not hold a high volume of inventory. All extending periods and cycles shall be made up to the extent of attaining an optimal level of working capital and better to implement a conservative policy of working capital management. Thus, it is advisable to consider the result of this study while making decisions regarding their working capital management to support their performance.

Coronavirus pandemic and economic lockdown; study of strategic initiatives and tactical responses of firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Som Sekhar Bhattacharyya ◽  
Shreyash Thakre
Keyword(s):  
Theoretical Perspective ◽  
Working Capital ◽  
Strategic Responses ◽  
Short Term ◽  
Firm Level ◽  
Content Type ◽  
Strategic Initiatives ◽  
Research Findings ◽  
The Impact

Purpose The coronavirus pandemic (COVID-19) and the associated economic lockdown provided a jolt to businesses around the world and the global economy. Amid the ongoing uncertainty, circumstances varied across business sectors and regions, but the common goal for business organizations was to respond effectively, devising strategies to survive the turmoil and accelerate recovery. The narrative in India was no different from the rest of the world. Due to the novelty of the event, literature regarding its impact on the strategic management of firms was scarce. Thus, this paper aims to attempt to ascertain the crisis impact on firms and subsequently unravel the tactical short-term and long-term strategic responses initiated by Indian firms. Design/methodology/approach The authors carried out an empirical investigation to comprehend the strategic foresight adopted by Indian firms. Following a structured literature review, the authors conducted semi-structured open-ended interviews with 28 business experts who were involved in drafting strategic responses for their respective firms. Subsequently, the authors performed a thematic content analysis of the expert interview responses to document firm-level strategic responses to the COVID-19 crisis and associated economic lockdown. The authors further searched reputed media articles to supplement and triangulate the primary research findings with management perspectives. Findings The authors identified that managers had adopted a dual approach responding to the disruption. Companies simultaneously focused on surviving the crisis in the short-term by reconfiguring existing resources and initiated long-term recovery by mobilizing efforts for a redesigned business model. The research findings indicated that companies had adapted to the dynamic chaotic crisis environment to fulfill the changed consumer expectations. Remote working was widely implemented, supply networks were adjusted, operations were managed with minimal resources, working capital was closely monitored and the product-portfolio was revamped to reap benefits in an essentials-only world. The impact of several strategic firm responses was determined through this study on the revenue, profitability, operational costs and regulatory adherence of the companies along with the ability to meet stakeholder expectations. The study suggested that companies encouraged innovative solutions and highlighted the importance of collaborative inter-organizational practices. Research limitations/implications The study contributed to an inter-theoretical perspective on firm strategic initiatives to confront a global crisis. Resource-based view, dynamic capabilities perspective and industrial-organizational theory-based perspectives, were applied. This facilitated an extensive analysis of the entire business ecosystem to identify various paths to accelerated recovery during and post COVID-19 world. Practical implications The research findings would aid managers in drafting a comprehensive response strategy during and post COVID-19 world. This study results would help managers in addressing multiple concerns such as the sustainability of operations in the short-term through working capital management, the fulfillment of changing consumer needs through sustained innovation and business model alterations to ensure long term growth. The study enabled managers to prioritize necessary actions, ascertain the impact of strategic initiatives and build sustainable competitive advantage for long-term growth. Originality/value The novel coronavirus pandemic and the associated economic lockdown impacted firm strategies and this was one of the very first empirical studies regarding how firm-level short-term tactics and long-term strategies were getting reshaped. Traditionally, companies were prepared to handle localized disruptions but a crisis of such epic global proportions jeopardized most business. This study provided an extensive review of the short-term tactical and long-term strategic response perspectives adopted by Indian firms to absorb the impact of this unique crisis and expected recovery with renewed strength. This was one of the first research articles to provide an inter-theoretical perspective on the ongoing global pandemic. This integrated view of the possible impacts of firm-level strategic initiatives provided a detailed knowledge repository to design the crisis response capability of firms.

After the disclosure: measuring the short-term and long-term impacts of data breach disclosures on the financial performance of organizations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atiya Avery
Keyword(s):  
Financial Performance ◽  
Intangible Assets ◽  
Theory Development ◽  
Organizational Sustainability ◽  
Short Term ◽  
Data Breach ◽  
Content Type ◽  
Data Breaches ◽  
The Impact

Purpose This study aims to evaluate changes to the financial performance of organizations in the 1–4 quarters following a data breach event. The study introduces two new variables, “intangible assets” and “extraordinary losses” to the discussion on the impact of data breaches on an organization’s financial performance. Intangible assets allow us to gauge the data breach’s impact on the organization’s brand reputation and intellectual capital reserves. Extraordinary losses allow us to gauge if organizations considered data breaches truly detrimental to their operations that they rose to the level of “extraordinary” and not an event that could be incorporated into its usual operating expenses. Design/methodology/approach This study uses a matched sample comparison analysis of 47 organizations to understand the short-term and long-term impacts of data breach events on an organization’s financial performance. Findings Data breach events have some negative impacts on the organization’s profitability more than likely leading to a depletion of the organization’s assets. However, organizations do not perform better or worse in the short-term or long-term due to a data breach event; the organizations can be considered financially sustainable in the 1–4 quarters following a data breach disclosure. Originality/value This study takes two approaches to theory development. The first approach extends the current literature on data breach events as negative, value declining events to the organization’s performance, which is referred to as the “traditional view.” The second view posits that a data breach event may be a catalyst for enhanced long-term organization performance; this is referred to as the organizational sustainability and resiliency view.

scholarly journals The impact of the level of market competition intensity on enterprises activities in area of intellectual capital

Management ◽  
2017 ◽  
Vol 21 (2) ◽  
pp. 49-61
Author(s):  
Rafał Prusak
Keyword(s):  
Intellectual Capital ◽  
Intangible Assets ◽  
Traditional Approach ◽  
Market Competition ◽  
Competition Intensity ◽  
Material Resources ◽  
Level Of Satisfaction ◽  
Building Market ◽  
The Impact

Summary Market activity for today’s enterprises means continuing work to better understand the needs of their customers to provide them higher level of satisfaction. Building market advantages using a traditional approach based on material resources becoming less and less likely to increase competitiveness over the long term. The ability to use intangible assets, often more difficult to identify and manage, is becoming a key issue. Proper management of intangible assets can provide the company with unique market advantages that are unique, durable, and difficult to imitate. This study attempts to characterize selected dependencies between the nature of the actions undertaken by enterprises in relation to intellectual capital in the context of the strength of the level of competition in the market.

scholarly journals Factors Affecting ESG towards Impact on Investment: A Structural Approach

2021 ◽  
Vol 13 (19) ◽  
pp. 10868
Author(s):  
Satyabrata Aich ◽  
Ayusha Thakur ◽  
Deepanjan Nanda ◽  
Sushanta Tripathy ◽  
Hee-Cheol Kim
Keyword(s):  
Social Impact ◽  
Short Term ◽  
Interpretive Structural Modeling ◽  
Factors Affecting ◽  
Investment Returns ◽  
Research Gap ◽  
Investment Process ◽  
The Impact ◽  
The Relationship

Recent disasters have emphasized the need for further action to protect businesses and society from long-term sustainability threats. We believe that the crisis is hastening nascent ESG trends, and that the increased focus on a company’s environmental and social impact will last long after crises have passed. We refined three fundamental concepts that guide our thinking on investing based on environmental, social, and governance factors as our approach to sustainable investing has evolved. The ESG factor assessments are more of an inherent aspect of a sound investment process than a separate investment discipline. When ESG variables are considered, the focus is on long-term risk adjusted investment returns. Investors should choose the strategy that best matches with their goals and interests. ESG investing is not a simple yes or no answer. The research gap extracted from the previous studies is to determine the relationship among the influencing factors of ESG and its priority with their driving and dependence capabilities. We used an ISM Approach to uncover the interrelationships and influencing behavior among the elements for considering ESG in investment after conducting a thorough literature research and consulting with experts. Here interpretive structural modeling (ISM) was used to explore the links among such extracted factors and its interdependencies. There was also focus on the short-term and long-term factors to achieve our desired objective. Our research will assist businesses in attracting and obtaining finance. The results of this analysis will be helpful for leaders to understand the impact of ESG on the investment aspects of an organization.

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