scholarly journals MANAGEMENT OFCASH FLOWS OFINVESTMENT ACTIVITY OFENTERPRISES

2017 ◽  
pp. 111-120
Author(s):  
Petro RENDOVYCH
Keyword(s):  
Stock Market ◽  
Financial Management ◽  
Financial Stability ◽  
Cash Flows ◽  
Internal Source ◽  
Joint Stock Company ◽  
Stock Company ◽  
Investment Activity ◽  
Operational Activity ◽  
Market Relations

Introduction. In joint-stock companies there is a problem of shortage of money not only for carrying out of investment activity, but also for maintenance of sufficient level of the operational activity. One of the main instruments of a market economy that contributes to the formation of a cash flow system is the stock market. The purpose ofthe article is to study some aspects ofcash flow management in the system of financial management, to characterize cash flows of joint stock companies, which determine the potential of forming their internal source of financing for their development and provide the formation of additional investment resources for the implementation of financial investments in the securities market. Results. One of the important tasks of the Ukrainian economy development is the development of mechanisms for the formation of investment-attractive and innovative-oriented joint-stock companies. The development of market relations requires an increase in the effectiveness of their activities. The assessment of the effective activity of the entity was determined by analyzing the profit of the enterprise, and subsequently, economists supplemented its coefficients of liquidity, solvency, financial stability. The analysis and identification ofthe reserves for increasing profits is also carried out by analysts of the stock market in orderto furtherstimulate the investor. Conclusion. We believe that the analysis of cash flows by their dynamics and structure allows us to identify the negative factors of the organization of financial and economic activity of the entity, immediately reflects the size, quality and direction of change in the financial state of the joint-stock company, and also contributes to the development of concrete measures for its improvement. Since inbound and outbound cash flows of investments are the main factors in creating the value ofenterprises, which ultimately reflects the management of the result of investment activity in terms of Modern Value Approach, therefore, in our view, the process of reproduction of capital and the formation of investment flows can be expressed through the movement of value in the field Investment activity. In the process of studying investment flows of enterprises, it was found that the level of investment attractiveness of enterprises depends on the efficiency of the movement oftheirinvestment cash flows.

Studying Demand for Institutes of Corporate Governance: Legal Aspects

2003 ◽  
pp. 50-61 ◽  
Author(s):  
T. Medvedeva ◽  
A. Timofeev
Keyword(s):  
Corporate Governance ◽  
Legal Aspects ◽  
Joint Stock Company ◽  
Federal Law ◽  
Stock Company ◽  
Open Joint Stock Company ◽  
Open Joint ◽  
Market Relations ◽  
Corporate Legislation

The article analyzes legal aspects of institutes of corporate governance. Different draft laws "On Joint-Stock Companies" are considered which reflected interests of separate groups of participants of market relations. Stages of property redistribution are outlined. The advantages of the model of the open joint-stock company are formulated. Special attention is paid to the demand for legal institutes of corporate governance as well as to the process of accepting the Federal Law "On Entering Amendments to the Federal Law "On Joint-Stock Companies"" which was enacted in 2002. The article contains proposals directed at improvement of corporate legislation.

EVALUATION OF THE FINANCIAL STABILITY OF THE INSURANCE ORGANIZATION

2020 ◽  
pp. 68-78
Author(s):  
Oleg Georgievich Blazhevich
Keyword(s):  
Capital Structure ◽  
Financial Stability ◽  
Load Level ◽  
Joint Stock Company ◽  
Insurance Company ◽  
Working Capital ◽  
Stock Company ◽  
Ability To Pay ◽  
Essential Component ◽  
Equity Ratio

The article studies the financial stability of a particular insurance organization. The financial stability of the insurance company is an essential component of its activities and characterizes the ability to pay off its obligations on time and in full. The analysis of financial stability is defined as an independent object of evaluation, which explores the structure of the formation and use of capital. To assess the financial stability of the insurance company, a set of indicators was formed, including the following ratios: level of equity, ratio of equity to liabilities, ratio of insurance premiums and insurance reserves, ratio of working capital and non-current capital, level of permanent capital, ratio of equity and insurance reserves, level of debt load, level of insurance reserves. The insurance public joint-stock company RESO-Garantia was chosen as the object of analysis. The analysis showed that the capital structure in the insurance company under consideration is not optimal. The company has a shortage of insurance reserves, which is offset by equity.

scholarly journals Formation of the Mechanism for Financial Planning at the Enterprise in Conditions of Volatility and Instability of the External Environment

2021 ◽  
Vol 9 (524) ◽  
pp. 207-215
Author(s):  
D. I. Dema ◽  
◽  
L. V. Sus ◽  
Y. Y. Sus ◽  
◽  
...  
Keyword(s):  
Financial Planning ◽  
Financial Management ◽  
Financial Stability ◽  
External Environment ◽  
Cash Flows ◽  
Financial Economic ◽  
Point Of View ◽  
Existing Problems ◽  
Advantages And Disadvantages

The research is aimed at theoretical and practical aspects of financial planning of enterprises in conditions of volatility and instability of the external environment. Based on the generalization of approaches to the essence and the meaning of financial planning, its semantic characteristics are determined in terms of methodology in both broad and narrow context. The process of evolution of financial planning is considered from the point of view of formation of systems of financial economic activity management of enterprises, three stages of its genesis with specification of advantages and disadvantages are distinguished. The principles, types and methods of planning are systematized. The stages of financial planning at enterprises are distinguished and their role in balancing financial stability in the process of formation, accumulation, distribution and use of financial resources is determined. Based on the stages of financial planning, three main subsystems of activity planning (strategic forecasting, ongoing financial planning and operational planning of financial activities) are described. On the basis of the analysis of existing problems in financial management in case of instability and recurrence of crisis phenomena, a mechanism for organizing financial planning at enterprises is proposed. The need to improve the effective generation of cash flows in the long term is distinguished, taking into account strategic and long-term financial plans based on the scenario financial planning method.

Share Repurchase As the Instrument of the Management of the Capital of the Company

2020 ◽  
Vol 9 (2) ◽  
pp. 44-50
Author(s):  
Vladimir Galanov ◽  
A. Galanova
Keyword(s):  
Stock Market ◽  
Secondary Market ◽  
Share Repurchases ◽  
Top Management ◽  
Joint Stock Company ◽  
Share Repurchase ◽  
Investment Portfolio ◽  
Stock Company ◽  
Proper Management ◽  
External Shareholders

The joint-stock company is a participant in the primary stock market, primarily as an issuer of shares and bonds. However, in the event of the repurchase of its shares, the joint-stock company may also act as a specific participant in the secondary market. When buying its own shares, the joint-stock company is turning into a specific type of investor and speculator in the stock market, and the shares it purchases form a redemption issue portfolio that requires proper management, as well as an investment portfolio. Share repurchases may have economic, “technical” and even political and social reasons. Repurchased shares may relate to a group of treasury shares or a group of quasi-treasury shares. The existence of quasi-treasury shares means that there is an opportunity in which it is not external shareholders who control the joint-stock company but the company's top management, which is no longer under the control of the shareholder group.

scholarly journals USAGE OF CONTROL CHARTS FOR TIME SERIES ANALYSIS IN FINANCIAL MANAGEMENT

2014 ◽  
Vol 16 (1) ◽  
pp. 138-158 ◽  
Author(s):  
Martin Kovářík ◽  
Libor Sarga ◽  
Petr Klímek
Keyword(s):  
Time Series ◽  
Process Control ◽  
Statistical Process Control ◽  
Financial Management ◽  
Financial Stability ◽  
Control Charts ◽  
Practical Interest ◽  
Cash Flows ◽  
Statistical Process ◽  
Financial Flows

We will deal with corporate financial proceeding using statistical process control, specifically time series control charts. The article outlines intersection of two disciplines, namely econometrics and statistical process control. Theoretical part discusses methodology of time series control charts, and in research part, the methodology is demonstrated on two case studies. The first focuses on analysis of Slovak currency from the perspective of its usefulness for generating profits through time series control charts. The second involves regulation of financial flows for a heteroskedastic financial process by EWMA and ARIMA control charts. We use Box-Jenkins methodology to find models of time series of annual Argentinian Gross Domestic Product available as a basic index from 1951–1998. We demonstrate the versatility of control charts not only in manufacturing but also in managing financial stability of cash flows. Specifically, we show their sensitivity in detecting even small shifts in mean which may indicate financial instability. This analytical approach is widely applicable and therefore of theoretical and practical interest.

scholarly journals The Official Statistical Observation by Form “Report on Issue, Offering and Circulation of Securities”: The Importance for Decision-Making at the Ukrainian Stock Market

2019 ◽  
Vol 86 (3) ◽  
pp. 14-24
Author(s):  
V. P. Panteleiev
Keyword(s):  
Stock Market ◽  
Financial Statements ◽  
Securities Market ◽  
Joint Stock Company ◽  
Statistical Methodology ◽  
Stock Company ◽  
Information Base ◽  
The Core ◽  
Statistical Observation ◽  
Statistical Indicators

Practical aspects of preparation and use of the Official Statistical Observation of Ukrainian enterprises by Form “Report on Issue, Offering and Circulation of Securities” is highlighted from the perspectives of equity formation and transfer of ownership for equity components (shares and other securities). Value characteristics of issue, offering and circulation of issuers’ securities are discussed. It is demonstrated that the above characteristics constitute the information base for the operation of securities market, with the core data being the overall nominal value of securities belonging to the owners. Emphasis is made on the importance of data obtained from the form No 2-Б about issue, offering and circulation of securities for the Ukrainian stock market; data on key transactions on the securities market in 2012–2016 are given.       The classification and terms of the official statistical observation and the peculiarities of preparing the report on issue, offering and circulation of securities by form No 2-Б are discussed. The essential observation parameters are selected as the classification criteria, namely: characteristics of its organization, preparation, subject, respondents, statistical methodology, statistical tools, statistical indicators, etc.  It is stressed that statistical information carriers, e. i. observation forms, were being changed along with transformations in the Ukrainian economy. The evolution of the form No 2-Б for the official statistical observation of Ukrainian enterprises on issue, offering and circulation of securities over 1997–2017 is traced. The change in recording of aspects like bond value, as well as observation status, title, respondents, periodicity, contents of the form sections, etc. are shown.      The information base for the official statistical observation by form No 2-Б is the data from accounting and financial statements of enterprises issuing equity securities. The legal base is provisions and regulations of normative acts on equity, fixed in the statutory documents of an issuer. The information from accounting and financial statements of a joint-stock company on equity transferred to ownership has considerable value, being used for effective company management and for filling and submission of the form No 2-Б. The latter is of great interest for investors engaged in taking investment decisions. Conclusions from the study are made and areas of further studies are outlined.      

scholarly journals The Features of Capital Management in Joint Stock Companies

2021 ◽  
Vol 2 (517) ◽  
pp. 266-273
Author(s):  
O. V. Kvasha ◽  
Keyword(s):  
Financial Stability ◽  
Theoretical Aspect ◽  
Joint Stock Company ◽  
Capital Management ◽  
Stock Company ◽  
Advantages And Disadvantages ◽  
Managerial Decisions ◽  
Economic Entity ◽  
Definition Of ◽  
Classical Economic

The article is concerned with studying of the features of capital management in joint stock companies. The concept of joint stock capital as an economic category is considered. The approaches to determining the essence of the concept of «joint stock capital» are analyzed. The system of management of joint stock capital of enterprise is presented, it is determined that the process of joint stock capital management is an aggregate of methods, forms and instruments for attracting funds from various sources in accordance with the needs of the development of the joint stock company. The formula for assessing the market value of enterprise is considered. The process of formation of equity of the enterprise is analyzed; the advantages and disadvantages of the types of sources of this type of funding are described. The peculiarities of attracting borrowed capital are studied and the influence of this method on the financial stability of the joint-stock company is described. The peculiarities of joint stock capital management on the example of PJSC «Motor Sich» have been characterized and conclusions have been drawn on optimizing the policy of capital management in joint stock companies. On the basis of the research of the theoretical aspect of the essence of the joint stock capital it is determined that the system of capital management in a joint stock company is characterized by interdependence and consistency of various subsystems and elements upon which depends the efficiency of functioning of the whole system, and, accordingly, the final result of effective capital management of the joint-stock company. Prospects for further research in this direction are the definition of new interdependences between the elements that influence the adoption of managerial decisions in the management of joint stock capital. Further development of the theory of joint stock capital management in the context of behavioral economics can lead up to the replacement of classical economic models of behavior of the economic entity and up to the creation of a new mechanism for managing the joint stock capital of the enterprise.

scholarly journals Classification of financial security functions of joint-stock companies

2017 ◽  
pp. 63-71
Author(s):  
Olena Stashchuk
Keyword(s):  
Financial Management ◽  
Equity Capital ◽  
Joint Stock Company ◽  
Financial Security ◽  
Economic Activities ◽  
Stock Company ◽  
Satisfactory Level ◽  
Business Entities ◽  
Legal Forms

The article proves that financial security functions are one of the fundamental categories, which makes it possible to more thoroughly describe the concept of financial security of jointstock companies. The purpose of the paper is to systematize the current approaches of scholars to determining financial security functions of business entities, as well as to improve financial security of joint-stock companies. The existing theoretical studies of financial security do not take into account peculiar features of doing business, institutional-legal forms and sectors of economic activities. A critical analysis of scholars’ approaches to identifying functions of financial security of business entities allows us to conclude that the classical functions of financial security of enterprises are as follows: establishing a framework for managing financial security of enterprises, assessing the level of financial security of enterprises, planning and forecasting the level of financial security of entities, exercising control over measures taken to achieve a satisfactory level of financial security of joint-stock companies. The role of joint-stock companies in the development of the financial system of the state is identified. Based on the major features of joint stock companies’ operations and typological characteristics of their financial security, it is proposed to distinguish general and specific functions of financial security of joint-stock companies. It is pointed out, that general functions include: extended reproduction, informational, organizational, planning, analytical, and stimulating. Accordingly, it is found that specific functions of financial security of joint-stock companies are as follows: protective, investment, anti-crisis financial management, financing business operations, equity capital management, and corporate governance. The proposed classification of functions might be useful in the process of establishing a framework for managing financial security of a joint-stock company, as well as enhance further research on the issue of providing a satisfactory level of financial security of corporate units. The described functions are found to possess the following characteristic properties: system approach, completeness, universality and comprehensiveness. At the same time, it is claimed that the division of the whole range of functions into general and specific ones will contribute to increasing the efficiency of financial security management of joint-stock companies.

scholarly journals THE ROLE OF DATA IN THE VALUATION OF AN ENTERPRISE - THE COST OF EQUITY

2020 ◽  
Vol 49 (49) ◽  
Author(s):  
Edyta Piątek
Keyword(s):  
Research Problem ◽  
Cash Flows ◽  
Joint Stock Company ◽  
Cost Of Equity ◽  
Stock Company ◽  
Enterprise Valuation ◽  
Valuation Method ◽  
Valuation Process ◽  
The Right ◽  
The Cost

The valuation of a company is a complex process and requires comprehensive knowledge. The decisions made at each stage have consequences for the next step. The first fundamental stage is to choose the standard of value that the valuer wants to determine. Only then is the appropriate valuation method selected. One of the further factors influencing the outcome of the valuation process is the cost of equity, which takes into account important parameters of the company's operation. It is the cost of equity that causes the most controversy and dilemmas. The research problem analyzed in the article is a way of calculating the cost of equity in enterprise valuation. The example of a specific valuation indicates that the cost of capital cannot be a parameter (data item) covering all risks, but only those that cannot be programmed in cash flows. In the course of research works, the valuation of enterprise B organized in the form of a general partnership as of 29.08.2014 in connection with its contribution by the shareholders to the joint-stock company A as an in-kind contribution increasing the capital was performed. Due to the fact that there is a minority shareholder in joint-stock company A, there is a dilemma of choosing the right value and valuation method and the method of calculating the cost of equity. Neither the literature on the subject in this respect, nor the parties to the transaction, indicate a clear solution, especially as regards the value of the cost of equity.

scholarly journals Retrospective analysis of reproduction processes of fixed capital of railway transport

2019 ◽  
Vol 5 (2) ◽  
pp. 235-244
Author(s):  
A. Gulamov
Keyword(s):  
Retrospective Analysis ◽  
Fixed Capital ◽  
Joint Stock Company ◽  
Competitive Pressure ◽  
Railway Transport ◽  
Stock Company ◽  
Reproductive Process ◽  
Railway Company ◽  
Fixed Assets ◽  
Market Relations

Joint–stock company “Uzbek Railways” is the largest transport company in the country and in some segments of the transport market works in conditions of tough competition. With the development of market relations and economic growth, as well as competitive pressure from other participants in the transport market, reliable condition, efficient use and intensive reproduction of fixed assets are becoming increasingly important. In this regard, the research and development of effective methods of the reproductive process of the railway company. In this article, a retrospective analysis of the reproduction of the fixed capital of a railway company is carried out and suggestions are given for the intensification of this process.

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