Evaluating the effectiveness of companies' financial policies using logistic regression: A case study of electric power companies

2021 ◽  
Vol 14 (2) ◽  
pp. 208-217
Author(s):  
Kirill E. PIVNYK
Keyword(s):  
Logistic Regression ◽  
Electric Power ◽  
Logit Model ◽  
Systems Approach ◽  
Financial Analysis ◽  
Comprehensive Analysis ◽  
Financial Policy ◽  
Financial Policies ◽  
The Subject

Subject. This article assesses the effectiveness of companies' financial policies using logistic regression. It considers the financial policy assessment as a comprehensive analysis that helps evaluate the company's financial performance and make a conclusion based on a single criterion. Objectives. The article aims to develop a single (universal) criterion helping conclude of the company's financial policy effectiveness. Methods. For the study, I used a comprehensive approach based on the developed logit model, financial analysis, systems approach, and an overview of literature sources on the subject. Results. The article presents a developed methodology for evaluating the effectiveness of financial policy determined by the effectiveness of financial policy (EFP) equation for Russian electric power companies. Relevance. The results obtained can be used in practice to evaluate the financial policy by company external and internal users.

scholarly journals Analisis Kelayakan Pendirian Unit Produksi di Universitas (Studi Kasus Industri Minyak Atsiri)

2010 ◽  
Vol 3 (1) ◽  
pp. 12
Author(s):  
Ahmad, Mubin
Keyword(s):  
Financial Management ◽  
Net Present Value ◽  
Financial Analysis ◽  
Raw Material ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Business Units ◽  
High Investment ◽  
The Subject

The establishment of production unit requires fairly high investment, therefore to avoid the investment connducted which in fact will be unprofitable in the future, before implementing such investment, the comprehensive analysis or feasibility study is required, concerning marketing, technical financial management, and social-economyn alysis.From the result of feasibilitiy studythe level of feasibility for the establishment of production or business units is determined. In this case study, the subject of study is production of essential oil that serves as raw material for food, pharmacy, and parfume manufactures. Based on the analysis result of market and marketing aspects, as well as technical and Technology aspects, it was  ndicated that the proposal of production unitestablishment feasible to beaccepted. Likewise, the result of financial analysis with the methods of Net present value, Profitability Index(B /C ratio), Internal Rate of Return and payback period,indicated that the proposal of production unitestablishmeint is feasibleto be accepted.

Development of a methodology for evaluating the effectiveness of financial policies of companies

2021 ◽  
Vol 14 (4) ◽  
pp. 364-375
Author(s):  
Vladimir A. SLEPOV ◽  
Kirill E. PIVNYK
Keyword(s):  
Practical Problem ◽  
Practical Significance ◽  
Financial Policy ◽  
Due Diligence ◽  
Practical Application ◽  
Financial Policies ◽  
Market Participants ◽  
Effective Development ◽  
Current Standards

Subject. This article presents an analysis of the essence of financial policy as a factor of effective development of companies. Evaluation of the effectiveness of the implemented financial policy of companies is a significant scientific and practical problem. It determines the choice of the main criteria used to calculate the financial policy effectiveness. Objectives. The article aims to develop a comprehensive methodology for assessing the effectiveness of financial policy of companies in modern conditions, and define criteria for its evaluation. Methods. The Due Diligence approach is the basis for solving the research tasks: comparing the current standards and methods for assessing the financial policy of companies and simplifying its implementation through the proposed method of multivariate coefficient analysis. Results. The article offers a comprehensive approach to assessing the effectiveness of financial policy, considering electric power companies as a case study. The practical significance of the results obtained lies in the use to increase the investment attractiveness of companies that are considered as potential investment objects. Conclusions. The research proposes a methodology for assessing the financial policy of companies based on a multivariate, customizable system of financial coefficients. An indicator of the effectiveness of financial policy of companies was calculated. It can be recommended for practical application. The obtained results of evaluating the effectiveness of financial policy can be used by the companies’ management to make management decisions, investors to choose the best investment option, market participants to rank companies by efficiency, and determine industry benchmarks.

Creating a group of financial ratios to evaluate financial policy of companies

2020 ◽  
Vol 26 (5) ◽  
pp. 1039-1053 ◽  
Author(s):  
K.E. Pivnyk
Keyword(s):  
Policy Implementation ◽  
Financial Market ◽  
Systems Approach ◽  
Financial Ratios ◽  
Financial Policy ◽  
Financial Policies ◽  
Financial Status ◽  
Market Participants ◽  
Investment Option ◽  
Information Basis

Subject. The article considers the analysis of financial ratios as one of important methods to evaluate the financial status of companies. The analysis results serve as a basis for company financial policy assessment. Objectives. The focus is on creating a basic group of financial ratios enabling to measure the effectiveness of financial policy implementation. Methods. The study draws on the correlation analysis, critical review of sources, and the systems approach. Results. I developed a set of financial ratios, which can be used to evaluate the effectiveness of financial policy implemented by companies. Conclusions. Certain financial ratios can serve as an objective information basis for evaluating the effectiveness of financial policies of companies. The findings can be useful for company management to evaluate the financial policy, for investors to choose the best investment option, as well as for financial market participants.

Evaluating the effectiveness of financial policy of companies using the generalized Harrington's function

2020 ◽  
Vol 26 (2) ◽  
pp. 270-284
Author(s):  
V.A. Slepov ◽  
K.E. Pivnyk
Keyword(s):  
Electric Power ◽  
Practical Problem ◽  
Comprehensive Approach ◽  
Practical Significance ◽  
Financial Policy ◽  
Due Diligence ◽  
Financial Policies ◽  
Market Participants ◽  
Investment Option ◽  
Effective Development

Subject. The article analyzes the essence of financial policy as a factor of effective development of companies. Evaluating the effectiveness of companies' financial policies is a significant scientific and practical problem. It determines the choice of main criteria on the basis of which the effectiveness of financial policy is calculated. Objectives. The aim is to develop a comprehensive methodology for evaluating the effectiveness of companies' financial policies in modern conditions, to define criteria for its evaluation. Methods. The Due Diligence approach is a basis for solving the research tasks, i.e. comparing the existing standards and methods for evaluating companies' financial policy and simplifying its implementation through the proposed method of multivariate coefficient analysis. Results The article offers a comprehensive approach to evaluating the effectiveness of financial policy on the electric power companies case. The practical significance of obtained results is in their use to increase the investment appeal of companies that are considered as potential investment objects. Conclusions. We offer a method for evaluating the financial policy of companies based on a multivariate, customizable system of financial coefficients. We calculated an effectiveness indicator of the financial policy of companies, which can be recommended for practical use. The obtained results can be used by company management to make management decisions, by investors to choose the best investment option, by market participants to rank companies by efficiency and to determine industry benchmarks.

Significant financial ratios to assess the company's financial policy effectiveness

2021 ◽  
Vol 14 (3) ◽  
pp. 347-360
Author(s):  
Kirill E. PIVNYK
Keyword(s):  
Policy Implementation ◽  
Financial Market ◽  
Systems Approach ◽  
Financial Ratios ◽  
Financial Policy ◽  
Financial Policies ◽  
Market Participants ◽  
Investment Option ◽  
Information Basis ◽  
Base Group

Subject. This article fixates on the financial ratios used to assess the financial policies of companies. Objectives. The article aims to form a base group of financial ratios enabling to measure the effectiveness of company's financial policy implementation. Methods. For the study, I used a correlation analysis, critical review of subject-matter literature, and the systems approach. Results. The article presents a set of financial ratios that can be used to assess the effectiveness of financial policy implemented by companies. Conclusions and Relevance. Taken in totality, the described financial ratios can serve as an objective information basis to assess the effectiveness of companies' financial policies. The findings can be useful for company management to evaluate the financial policy, for investors to choose the best investment option, and for financial market participants.

scholarly journals Making Major Retail Establishments Sustainable: The Case of the Mall at Robinson

2007 ◽  
Vol 2 (4) ◽  
pp. 14-22 ◽  
Author(s):  
Matthew M Mehalik ◽  
Court Gould ◽  
Beth Edwards
Keyword(s):  
Continuous Improvement ◽  
Multidisciplinary Team ◽  
Systems Approach ◽  
Comprehensive Analysis ◽  
Shopping Mall ◽  
Sustainable Business ◽  
Project Approach ◽  
Retail Shopping ◽  
Retail Establishments

This case serves as a leadership example of what is initially possible for existing mall retail establishments regarding sustainability. The discussion consists of a case study of how a multidisciplinary team of Pittsburgh-regional experts conducted a comprehensive analysis using a systems approach [1] to identify and provide recommendations for sustainable business solutions to benefit a large retail shopping mall in the Pittsburgh Region, The Mall at Robinson. The convening organization for this project was Sustainable Pittsburgh. Findings from the assessment include solutions that will save or make money and increase the mall's effectiveness and resource efficiency. Other impacts include recommendations for becoming better stewards of the environment and community and increasing the mall's public profile. The project approach has been to focus on opportunities for continuous improvement where the interests of people, business, and environment meet.

Concerning the abuse of power by an official

2020 ◽  
pp. 103-110
Author(s):  
Ihor Oheruk
Keyword(s):  
Criminal Code ◽  
Comprehensive Analysis ◽  
Practical Significance ◽  
Abuse Of Power ◽  
Government Functions ◽  
Analysis And Synthesis ◽  
The Status ◽  
The Subject ◽  
Criminal Legislation ◽  
Logical Semantic

Purpose. The purpose of the work is to analyze the application of the second and third parts of Article 3692 of the Criminal Code of Ukraine to officials in the context, that defines them by the Criminal Code of Ukraine in the note to Article 364 of the Criminal Code of Ukraine. Methodology. The methodology includes a comprehensive analysis and synthesis of the available scientific and theoretical material and the formulation of relevant conclusions and recommendations. In the course of the study, the following methods of scientific knowledge were used: terminological, logical-semantic, system-structural, logical-normative. Results: in the course of research the cause of criminalization of such act as "abuse of power" is considered, the subject of the specified criminal act which has the features of "an official" in the context, that defines it by the note to Article 364 of the Criminal Code of Ukraine is analyzed and the main ways of committing criminal acts, that are provided for in this article of the Criminal Code of Ukraine are identified. Originality. The study found, that one of the key conditions for the opportunity to influence officials, that are authorized to perform government or local self-government functions, is the position held by the official and the related opportunities. Therefore, taking into account the opinion of the scientists, that the subject of crimes, that are provided for by the second and third parts of Article 3692 is special, the peculiarities of which is the cumulative feature, that denotes, that such person is not endowed with the status of an official, well-founded need to specify the criminal legislation of Ukraine in terms of the application the second and third parts of Article 3692 of the Criminal code of Ukraine concerning officials in the context, that defines them by the criminal legislation of Ukraine in the note to Article 364 of the Criminal Code of Ukraine. Practical significance. The research results can be used in lawmaking in the improvement of anti-corruption legislation.

Improving the integrated reporting of electric-power industry companies

2020 ◽  
Vol 23 (8) ◽  
pp. 922-939
Author(s):  
N.V. Malinovskaya ◽  
M.D. Malinovskii
Keyword(s):  
Comparative Analysis ◽  
Electric Power ◽  
Electric Power Industry ◽  
Power Industry ◽  
Integrated Reporting ◽  
Strategic Objectives ◽  
Methods Of Analysis ◽  
Analysis And Synthesis ◽  
Guiding Principles

Subject. This article deals with the issues relating to improving integrated reporting in terms of dovetailing strategic objectives with capital changes. Objectives. The article aims to develop a system of indicators for disclosure of capital types in integrated reporting of electricity generating companies, as well as recommendations aimed at implementing the fundamental concepts and guiding principles of integrated reporting. Methods. For the study, we used the methods of analysis and synthesis, comparison, generalization, and abstraction. As a case study, we conduct a comparative analysis of the disclosure of six types of capital by the largest electricity generating companies, namely PAO Inter RAO, AO Rosenergoatom and PAO RusHydro. Results. The article formulates proposals for disclosure of capital information to address such a lack of accountability as a contradiction to the principle of coherence. It proposes a system of indicators (core and additional) for disclosure of six types of capital by electricity generating companies. Conclusions. A significant reporting problem is the lack of correlation between key strategic objectives and capital changes. The formulated recommendations for disclosure of capital information can help solve this problem, and increase the attractiveness of the integrated report for capital providers.

Sign in / Sign up

Export Citation Format

Share Document