scholarly journals Financial management as the main means of increasing the competitiveness of the firm

2021 ◽  
pp. 11-16
Author(s):  
Olena BROVKOVA ◽  
Oleksandra YAKOVENKO ◽  
Roman HONDIUL
Keyword(s):  
Financial Management ◽  
Cash Flows ◽  
Market Mechanism ◽  
Financial Resources ◽  
Difficult Situation ◽  
Financial Condition ◽  
Material Condition ◽  
Analysis And Synthesis ◽  
Position Management ◽  
The Impact

The movement of capital underlies the movement of financial resources. Enterprise finance is a relationship, both monetary and economic, that arose as a result of the movement of money. These relationships need management. Management is a set of techniques and methods of purposeful influence on the object in order to achieve certain results. The purpose of the paper is to identify the impact of financial management on the general state of the enterprise and its competitiveness. Determining the main features of the material condition of the enterprise. Development of a system of gradual and effective implementation of financial position management of the firm. The main problems and features of financial management are considered in the article. This topic is relevant, because making a profit for the company is the main goal, and without the skillful coordination of this unit, it is unattainable. The paper identifies the main aspects, objectives, problems and levers of financial management. The scheme of key stages of implementation and effective recommendations on gradual changes in the financial sphere of the enterprise is offered. For effective research such sources were used as: scientific works, various Internet-sources, materials from profile and periodicals. A systematic approach, generalization methods, dialectical analysis and synthesis were also used. In the current environment, financial management is a system of optimal and rational use of funds, a mechanism for managing cash flows, which is aimed at increasing financial resources, investment and increasing capital. First of all, the management staff of the enterprise must be able to realistically assess the financial condition of the enterprise as a whole and its competitors. This will ensure the survival of the enterprise and increase its competitiveness. Financial management as financial resource management is very dynamic. It contains a system of principles, methods, forms and techniques of regulating the market mechanism in the field of finance in order to increase the competitiveness of the enterprise. To a large extent, the effectiveness of its activities depends on the speed of reaction to changes in financial market conditions, the situation in it and the financial condition of the enterprise. Financial management is a science based on knowledge of basic management techniques, the ability to quickly and correctly assess the situation, the ability to quickly find a way out of a difficult situation. There is no universal algorithm of actions, but if you correctly use the methods, techniques and methods of solving standard problems, you can significantly increase the efficiency of the system.

scholarly journals Effective budgeting as a priority of the company›s development

2021 ◽  
Vol 16 (2) ◽  
pp. 46-53
Author(s):  
S. B. Kashkimbayev ◽  
A. N. Zhakupov
Keyword(s):  
Modern World ◽  
Budget Process ◽  
Budget Management ◽  
Subsequent Formation ◽  
Financial Condition ◽  
Analysis And Synthesis ◽  
Fierce Competition ◽  
The Right ◽  
Methodological Aspects ◽  
The Impact

In the modern world, in the conditions of economic instability and fierce competition, companies need to have effective tools that can provide an opportunity to study the current financial condition, compare cash inflows and outflows, approve the right decisions that contribute to the subsequent formation and development of the enterprise, as well as optimize management costs. In a company, such an important tool for financial planning, as well as control, is budgeting.This article discusses the tasks, goals, methods, disadvantages and advantages of budgeting, illustrates the full continuous cycle of budget management and the stages of development of the concept of budgeting. In addition to the theoretical aspects, the article considers the empirical and methodological aspects. The purpose of this article is to generalize the theoretical provisions and develop the organizational and methodological aspects of the application of budgeting and the impact of effective budgeting on the development of the overall company. The article uses complex and systematic approaches to the processes and phenomena under study, which is achieved through the methods of analysis and synthesis, review and collection of information, statistical analysis, scientific abstraction and visualization.In the conclusion of the article, the conclusions are made, that a properly formed concept of budgeting, improvement of methods and elements of the budget process will make it possible to manage the capital, as well as a single commercial, and the company as a whole, establishing the sequence of business types, terms and trends of restructuring. This will allow the owners of companies to adapt their business in time to all possible changes in market conditions.

Finance and Financial analysis

2021 ◽  
Author(s):  
Rossiyskoy Minobrnauki
Keyword(s):  
Professional Education ◽  
Financial Management ◽  
Financial Analysis ◽  
Point Of View ◽  
Basic Knowledge ◽  
Federal State ◽  
Master's Students ◽  
Financial Condition ◽  
State Educational ◽  
The Impact

The textbook systematizes basic knowledge in the field of finance, financial analysis and financial management, presented in their direct relationship and significance from the point of view of evaluation, diagnosis, forecasting and monitoring of the continuity of the organization's activities. It includes seven chapters grouped into three sections. The first section is devoted to the theoretical foundations of the organization's financial management, stakeholders and sources of the organization's activities. The second section discusses the basics of financial analysis, providing knowledge of the main directions, information base and methods of financial analysis, as well as allowing them to be applied reasonably, calculate and evaluate analytical indicators, determine the impact of globalization processes, various macro-and microfactors on the financial condition of the organization. The third section contains the basics of financial management, providing an understanding of the essence of the financial mechanism of the organization and algorithms for justifying decisions in the field of financial management. It complies with the federal state educational standards of higher education of the latest generation and provides the formation of basic competencies in the field of finance, financial management and financial analysis. For bachelor's, specialist's and master's students studying in the field of Economics, the system of additional professional education, training centers for advanced training of auditors and other financial market specialists, as well as for individual preparation of applicants for qualification certification and passing qualification exams.

scholarly journals Certain aspects of methodology for accounting of intangible assets

2020 ◽  
pp. 219-233
Author(s):  
Valentyna Yasyshena
Keyword(s):  
Intangible Assets ◽  
Balance Sheet ◽  
Cash Flows ◽  
Investment Activity ◽  
Balance Sheets ◽  
Analysis And Synthesis ◽  
Statement Of Cash Flows ◽  
The Stability ◽  
Double Entry ◽  
The Impact

Introduction. In today’s competitive environment; there is an urgent need to find new approaches to managing an enterprise and its intangible assets in order to ensure the stability and development of domestic enterprises. For effective management of the enterprise; there is a need to conduct research aimed at improving the accounting methodology in accordance with the present requirements and to increase the formation of quality information and accounting support of the management system; etc. Objective. The study is aimed at studying such elements of the accounting method as double-entry; the balance sheet; reporting by disclosing their nature; determining the impact on accounting and the formation of reporting indicators in the IAs and goodwill in accordance with the requirements of the applicable law. Methods. Analysis and synthesis are used to identify the current state of the study of the elements of the accounting method. Scientific abstraction and historical methods have been used to outline the problems investigated by scientists arising in the theoretical and practical area of accounting for IAs. Groupings; tables; graphs are used to classify IAs and goodwill and to establish the interconnection of the accounting method elements; etc. Results. The problems of accounting and reporting of intangible assets through the prism of such elements of accounting method as accounts; double-entry; the balance sheet; reporting are revealed. It is emphasized that the balance sheet as an element of the method should be understood not only as a form of reporting but first and foremost as a model for ordering accounting objects and summarizing information on the facts about the economic activity. Not all intangible assets are reflected in the accounts and respectively in the balance sheets of domestic enterprises. This applies both to recognized intangible assets under PAS 8 and internally generated assets that do not meet the recognition criteria but which increase the value of the enterprise. It is stated that the internal goodwill should be reflected in the financial and management accounting of the enterprise because of its existence during all current activities of the company; and not only at the moment of its realization. Keeping current records of goodwill at the enterprise will reduce the gap between its market and book value to a minimum. The impossibility of simultaneous attribution of intangible assets transactions to two types of activities; which is disclosed in the financial statements; is proved. It is noted in the Statement of Cash Flows that the information on the sale of intangible assets should be recorded as an operating activity. The revision of the definition of «investment activity» was emphasized. Prospects. It is necessary to conduct research in the field of improving the methodology of domestic accounting in general; including intangible assets through the study of approaches to the accounting methodology.

scholarly journals The Impact of The Reinsurance Institute on The Financial Results of Insurance Companies

2021 ◽  
Vol 13 (3) ◽  
pp. 117-130
Author(s):  
Marina V. Polyakova ◽  
◽  
Konstantin L. Polyakov ◽  
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Cash Flows ◽  
Insurance Companies ◽  
Financial Indicators ◽  
Short Term ◽  
Ex Post ◽  
Insurance Business ◽  
Financial Characteristics ◽  
The Impact

Risk management is one of the biggest challenges for financial market participants, in particular for the insurance companies. To solve this problem, the regulator and the insurance market have created a number of institutions, one of which is the institution of reinsurance. Institutions contribute to the solution of problems arising due to the limited rationality and opportunism of participants of contract processes. By use of these institutions organizations have an opportunity to reduce the “ex post” and “ex ante” transaction costs associated with contracts. At the same time, institutions only determine the rules and goals. The organization’s tactics and the way of fulfilling the requirements are completely controlled by its leadership of all levels, which also defines the role of institutions in solving other important business tasks, such as ensuring its efficiency and sustainability. The sustainability and efficiency of the insurance business significantly depends on proper risk management. This study analyses how the use of reinsurance institution as a part of risk-management affects the financial results of insurance companies. The insured events specified in contracts may not occur during their validity period, and one can suppose that in the short-term perspective reinsurance generates mostly outgoing cash flows, which affect the efficiency, solvency and liquidity of the organization. So the aim of the study is to analyse the impact of reinsurance intensity estimated by the share of premium transferred to the reinsurer on the specific financial characteristics of Russian insurance business. As a result, it was revealed that in the short term the impact is significantly negative: the use of reinsurance leads to decrease in financial performance of domestic insurance organizations. This result, of course, does not diminish the significance of reinsurance for risk-management, but it should be taken into account within financial planning and actuarial activities. For completeness, the relationship of various financial indicators with efficiency, solvency and liquidity of insurance companies was also analysed. In particular, it was shown that a change in the influence strength of a number of financial management tools affect above mentioned characteristics. We also noted the need to consider the nonlinear nature of relationships between financial indicators used in study in processes of forecasting and management.

scholarly journals Dividend Policy of Russian Companies with State Participation as a Mechanism of Relations with the Owners

2020 ◽  
Vol 9 (28) ◽  
pp. 139-150
Author(s):  
Tatyana V. Reshetnikova ◽  
Alexey I. Reshetnikov ◽  
Vasilii A. Tatiannikov
Keyword(s):  
Financial Management ◽  
Dividend Policy ◽  
Weighted Average ◽  
Equity Capital ◽  
Public Companies ◽  
Financial Condition ◽  
State Participation ◽  
Private Investors ◽  
The Impact ◽  
Retained Earnings

The formation and implementation of the dividend policy of Russian companies with state participation differ from the policies pursued by the public and non-public joint-stock companies owned by private investors. The state, being a special shareholder, affects the dividend policy from the position of the owner and the regulator, who has the ability to set certain restrictions and rules for companies that are not in the power of other categories of shareholders. Systemic risks and the uncertainty of the development of the Russian economy objectively require an in-depth study of the regulation of dividend policy in public companies with state participation. It is generally accepted that with a decrease in the number of dividends paid to owners of ordinary shares, the weighted average cost of capital becomes lower, while at the same time the financial performance of a business and the amount of retained earnings become higher. Therefore, the company's dividend policy is an important element of financial management and relations with the owners. The question of the importance of dividend policy for public companies with state participation is the most controversial and little studied today. The price of shares, the structure of equity capital, and the need to attract borrowed capital are directly dependent on the size of dividends. However, the payment of dividends reduces the amount of profit that can be reinvested in the development of the company, so the impact of dividend policy on the financial condition of the company is ambiguous. In this regard, it seems relevant to improve the dividend policy of public companies with state participation through solving the problems existing in them.

scholarly journals Evaluation of the integration between corporate and financial performance: The social impact bond financial instrument

2018 ◽  
Vol 15 (3) ◽  
pp. 138-144
Author(s):  
Danilo Tuccillo ◽  
Caterina Ferrone ◽  
Francesco Agliata
Keyword(s):  
Interest Rate ◽  
Financial Performance ◽  
Financial Management ◽  
Social Impact ◽  
Cash Flows ◽  
Social Enterprises ◽  
Financial Return ◽  
Financial Instrument ◽  
The Social ◽  
The Impact

The social impact bond (SIB), at the present in Italy, is a financial instrument issued by a bank to support social initiatives in which the subscriber will receive a limited financial return on investment. As part of that performance, the social return for the community is considered as an integration of the financial performance that will replace a part of the interest rate. The first experience in Italy is represented by a bank that has issued 45 Social Bond for 472 million euros. The research analyses, on the basis of the character-ristics of the third sector in Italy, with particular reference to the financial weakness of the sector, the possible impact on the financial management process in the social enterprises by the use of SIB. Moreover, we would demonstrate that, with a well-conducted cost-benefit analysis, it is possible to construct a hypothesis of SIB in which the repayment is based on market rate. In particular, is proposed the development of a SIB with the objective of formulating hypotheses of response to the innovative following questions: Given certain cost drivers, what social outcomes would generate savings for the state budget able to fully repay the fixed costs of the SIB, to give a percentage of the benefit to the government and to ensure the repayment to investors? How to identify the timing of cash flows in order to structure a potential internal rate of return objective satisfactory for investors? Due to the lack of already developed case studies, with the technics of the business plan, we analyse the impact of SIB on social and financial performance, both from the point of view of the Public Administration and of the social enterprise, in a project of social housing introducing a remuneration rate at market level. The development of the project shows that, with the integration of the private and public perspective, it is possible to improve the social and financial performance offering an adequate interest rate and, moreover, without limit the hypothesis of SIB underwriting to the philanthropic institution.

scholarly journals Financial management of fish and seafood processing enterprises in Vietnam during the COVID-19 pandemic

2021 ◽  
pp. 170-173
Author(s):  
T. H. Pham
Keyword(s):  
Financial Management ◽  
Financial Resources ◽  
Important Condition ◽  
The Face ◽  
Financial Management System ◽  
Health Situation ◽  
Effective Use ◽  
Seafood Processing ◽  
The Impact ◽  
Stable Development

The article analyses the impact of the COVID-19 pandemic on the financial state of enterprises in the fish and seafood processing industry in Vietnam. The most important condition for maintaining stable development is effective financial management of the enterprise. During the pandemic, when demand decreased, this led to a reduction in supply. The state of imports and exports was difficult due to the lack of human resources due to the health situation, the closure of the country's borders. This circumstance has seriously affected production, and, consequently, the financial situation of fish and seafood processing enterprises. The paper concludes that the financial management system of these enterprises should be aimed at their effective use in the face of emerging problems. The author proposes solutions for increasing the financial resources of enterprises.

Surviving and growing in the post-Covid world: the case of Indian hotels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raju Majumdar
Keyword(s):  
Financial Management ◽  
Wide Spectrum ◽  
Cash Flows ◽  
Primary Data ◽  
New Normal ◽  
Content Type ◽  
Select Group ◽  
Human Cost ◽  
The Impact

PurposeAs the world tries to come to terms with the exact economic and human cost of the Covid-19 pandemic, businesses are trying to discern and act on the implications of the “new normal” in order to survive and grow. Amongst all the industries impacted by the Covid-19 pandemic, travel and tourism has been the hardest hit. Operators across the value chain are trying to innovate and improvise in order to mitigate the impact of the pandemic on cash flows and working capital. The primary purpose of this paper then is to take a closer look at the measures adopted by the Indian hotel industry to restore revenues, conserve resources and attain greater operational and cost efficiencies in the midst of the Covid-19 crisis. The article also brings to the fore the growth-enhancing measures adopted by the industry in anticipation of a “new normal” in the post-Covid world.Design/methodology/approachThis study is based on primary data collected via a survey, followed by a series of interviews with a select group of senior finance managers from a wide spectrum of hotels based in India.FindingsOur findings suggest that Indian hotels have adopted several measures to enhance cash flows/revenues, reduce operating costs and cash outflows and conserve resources in order to tide themselves over during the crisis. Prominent cash flow–enhancing measures include price drops on special offers and reductions on list prices. Cost-cutting measures include economizing on energy consumption, reductions in labour costs and the postponement of maintenance expenses and discretionary spending. Resource conservation measures that have been adopted focus on postponement of capital expenditure and an increasing shift to localizing supply chains. Growth-enhancing measures adopted by the industry in anticipation of the long-term “new normal” include restructuring of the workforce and measures aimed at attracting domestic tourists and increasing product diversity.Originality/valueThis study attempts to understand the short-term and long-term financial management strategies adopted by Indian hotels in the face of unprecedented disruption caused by the Covid-19 pandemic. To the best of our knowledge, this paper is the first of its kind in the Indian context.

EFFICIENT USE OF FINANCIAL RESOURCES OF THE ENTERPRISE

2020 ◽  
Vol 4 (10) ◽  
pp. 37-42
Author(s):  
O. S. LOSEVА ◽  
◽  
S. M. MOLCHANOVA ◽  
Keyword(s):  
Capital Structure ◽  
Cash Flows ◽  
Economic Benefits ◽  
Sustainable Growth ◽  
Financial Resources ◽  
Financial Flows ◽  
Financial Condition ◽  
Composition Structure ◽  
Effective Use ◽  
Market Relations

The article discloses the issues of analyzing the financial resources of an enterprise, the use of which is aimed at increasing future economic benefits and meeting the needs of an enterprise of a financial nature, ensuring the projected rates of sustainable growth and competitiveness of companies. It is noted that the above definitions of the essence of "financial resources" in the educational literature do not fully characterize their economic content, and the process of formation of financial resources, composition, structure, volume is determined by the size of production and the financial condition of the enterprise. The methods of formation of financial resources, elements of the liquidity and solvency management system, including, in addition to the formation of the flexibility of the capital structure, the procedure for planning cash flows, managing ac-counts receivable and the efficiency of using funds, are considered. The authors show the optimal capital structure that provides the necessary balance between the amount of equity and borrowed capital. It has been substantiated that the effective use of sources of financing for modern enterprises is necessary for the effec-tiveness of the management of financial flows of modern companies and the sustainable financial position of an enterprise in the conditions of market relations.

scholarly journals The impact of performance analysis on the financial management and control at public universities in Bosnia and Herzegovina Federation

2019 ◽  
Vol 24 (2) ◽  
pp. 145-153
Author(s):  
Fuad Čergić ◽  
Emira Kozarević
Keyword(s):  
Public Sector ◽  
Balanced Scorecard ◽  
Financial Management ◽  
Financial Resources ◽  
Performance Models ◽  
The Balanced Scorecard ◽  
The Public ◽  
For Profit ◽  
And Control ◽  
The Impact

Organizations in today’s extremely competitive environment need to devote significant time, energy as well as human and financial resources to the measurement of their efficiency, in order to increase their profit, reduce costs, better plan their assets and manage their budgets, as well as to improve budget controls and risk assessment. Therefore, they need performance models, including the Balanced Scorecard. Primarily intended for profit organizations, the Balanced Scorecard is today used in the public sector, as well. This paper presents the research into the utilization of the Balanced Scorecard in the public sector, examining whether the performance of higher education institutions may be improved by the design and utilization of the Balanced Scorecard model.

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