Impact of information technology adoption and internal financing sources on firm performance

This book emphasizes financial problems that arise when managing multinational operations. However, the financial manager of a multinational company (MNC) must be familiar with certain mechanics of financing foreign trade and foreign investment because most MNCs are frequently engaged in foreign trade and investment activities.The first three sections cover the sources of financing foreign trade, while the last three sections discuss the sources of financing foreign investment. Section 10.1 discusses three basic documents involved in foreign trade: draft, bill of lading, and letter of credit. Section 10.2 analyzes the various payment terms of foreign trade. Section 10.3 describes the major sources of financing foreign trade. The three major sources of funds for foreign investment are internal sources of funds, external sources of funds, and sources of funds from development banks as described in Sections 10.4, 10.5 and 10.6, respectively. MNCs may use internally generated funds such as profits and depreciation charges. If internal sources of funds are insufficient, they may obtain their capital from sources within their home country and/or in foreign countries. In addition to these internal and external sources of funds, development banks provide MNCs with a variety of financing sources.

PurposeThe purpose of this paper is to examine the impact of bank financing and internal financing sources on women’s motivation for e-entrepreneurship.Design/methodology/approachFemale owners of e-businesses in India were surveyed regarding their perceptions of bank financing, internal financing sources and their motivations for e-entrepreneurship.FindingsThe findings of this study show that bank financing and internal financing sources positively impact women’s motivation for e-entrepreneurship in India. The results show that family status, education, easy access to new business information and location positively impact women’s motivation for e-entrepreneurship in India. The findings also show that bank financing has a higher impact on women’s motivation for e-entrepreneurship compared with internal financing sources.Research limitations/implicationsThis is a co-relational study that investigated the relationship between bank financing and women’s motivation for e-entrepreneurship and the relationship between internal financing sources and women’s motivation for e-entrepreneurship. There is not necessarily a causal relationship between the two. The findings of this study may only be generalized to individuals similar to those that were included in this research.Originality/valueThis study contributes to the literature on the impact of bank financing and internal financing sources on women’s motivation for e-entrepreneurship. The findings may be useful for investment advisors, the Indian Government and entrepreneurship consultants.

This paper explores the relationship between cash flow and capital investment of a firm. Using a panel of Nigerian publicly quoted firms in the services and consumer goods sectors, we found that cash flow is insignificantly related to capital investment. This observed insignificant relationship is stronger in episodes where we have a sub-sample of younger firms. The younger firms recording insignificant relationships revealed that these firms cannot easily access external funds when there is a cash flow shortfall because of their low level of experience in their socio-economic networks. On the evidence of older firms, the study shows that when there is a cash flow shortfall for older firms, these firms may face difficulties in financing their investment with internal sources of funds; though, these firms can easily access external funds because of their level of experience in socio-economic networks. The results provide support that internal and external sources of funds can be substituted perfectly for experienced firms.

We investigated the association between socially responsible investment, internal financing sources, and access to bank financing in the production industry of India. Using a survey research design, owners of small production firms were asked about their perceptions regarding socially responsible investment, internal financing sources, and access to bank financing. We found that socially responsible investment and internal financing sources help owners of small production firms improve access to bank financing. This study contributes to the literature on the relationship between socially responsible investment, internal financing sources, and access to bank financing. The findings may be useful for financial managers, production firm owners, investors, consultants, and other stakeholders.

Unravelling the financial struggles of private schools: An in-depth look at internal funding sources and trials was examined in this study. It employed a descriptive survey method within an ex-post-facto research design. The population consisted of 1533 principals from private secondary schools, with a sample of 153 principals selected through stratified random sampling. Data was collected using a self-developed questionnaire titled “Internal Funding and Trails Questionnaire (IFTQ),” which demonstrated a Cronbach alpha reliability of 0.86. Mean, standard deviation, and t-test analyses were conducted. The results revealed that internal funding sources included school fees, additional lesson payments, and income from school activities. Trials faced included late fee payments, lack of income-generating activities, and limited tuition fees. Recommendations emphasized active parental and teacher involvement in fundraising and highlighting the importance of financial support for schools.

The COVID-19 pandemic has hit the Indian economy very hard and negatively impacted the firm performance. This study investigated the impact of IT adoption and internal financing sources on firm performance. We employed a survey research design (a non-experimental research design). The owners of micro, small, and medium enterprises (MSMEs) were surveyed to test the impact of IT adoption and internal financing sources on firm performance. Empirical analysis shows that IT adoption and internal financing sources enhance MSMEs' performance in India. Information technology adoption and internal financing sources increase the chances of MSMEs' performance enhancement by 26.24% and 64.05%, respectively. This research study contributes to the literature on the impact of IT adoption and internal financing sources on firm performance. This study may help scholars develop further studies on the impact of IT adoption and internal financing sources on firm performance. MSME owners may also find the study's results helpful to enhance their firm performance to survive and prosper in the future.

The Republic of Serbia is characterized by an unsatisfactory macroeconomic environment. Under the conditions of an evident shortage of liquid assets, the financial capital has moved from real to the financial sector, which led companies to over-indebtedness and shutdown of their own capacities. Therefore, capital investments largely depend on internal financing sources and the ability of companies to internally generate funds for investments. In this regard, an emphasis is placed on the difference in the assessment of the company’s investment capacity based on internal financing sources, which are measured using static and dynamic indicators in order to prove the necessity of applying dynamic coefficients, which are unfortunately not present in our domestic practice. The paper examines and proves the advantages of the use of the dynamic approach for such analyses using the example of energy sector, which is one of the most important branches in Serbian economy.

This study examines the determinants of new firm creation in Africa, focusing on external and internal funding sources and their interactions. It also explores the influence of colonial history by separately analyzing former British and French colonies. The primary goal is to help fill crucial gaps in African literature on the determinants of entrepreneurship. Given Africa's widespread poverty and underdevelopment, understanding what drives entrepreneurship is essential for job creation and economic growth. The study reveals three key findings. First, at the full sample level, remittances are the only external financing source positively associated with new firm creation, while foreign aid and foreign direct investment obstacle it. Internal sources, like savings and credit, do not show significant effects. Second, the subsample analysis reveals heterogeneous results: former British colonies' funding sources align with the overall findings, while in former French colonies, only savings support entrepreneurship. Third, considering control variables, the subsample analysis indicates two distinct entrepreneurship models: opportunity-based in former British colonies and necessity-based in former French colonies. These findings are noteworthy and provide significant policy implications at both national and international levels. Crucially, the positive role of remittances in financing new business initiatives, confirms that migration serves as a mutually beneficial arrangement for both sending African countries and the host countries.

Internal funding sources such as retained earnings provide minimize information asymmetry in addition to being cheap and convenient for ailing firms such as listed non-financial firms trading at the Nairobi Securities Exchange (NSE). Research has however failed to do document precisely how the potential inherent in retained earnings can be exploited to improve financial performance of such firms in the long run. Therefore, this research conducted among 42 non-financial firms listed on the exchange explores the relationship between retained earnings and financial performance from an econometrics perspective. The study is anchored on the Pecking Order Theory, and employs the panel data research design founded in the positivist research paradigm, with data covering the time interval 2016 to 2022 inclusive. Data is sourced purposively from the annual reports of the non-financial sector, including agricultural firms, automobiles and accessories, commercial & services, construction & allied, energy & petroleum, insurance, investment, investment services, manufacturing & allied, telecommunication, and real estate investment trust. The research uses the fixed effects model under panel regression to show a positive and significant relationship between retained earnings and financial performance, and particularly the ultimate direct influence that retained earnings have on financial performance of listed nonfinancial firms. Therefore nonfinancial sector stakeholders should seek to leverage retained earnings to enhance financial performance and achieve resilience in the volatile market conditions, while scholars should seek to enhance external validity of these findings by replicating them in other study contexts. Keywords: Information asymmetry, retained earnings, financial performance, nonfinancial firms, Securities exchange, Econometrics, Panel data.

A literary analysis of the economic issues of the education system development has been carried out, in particular from the classics of the economic theory of the development of "human capital" to the modern concepts of development of the educational branch. The conceptual analysis of the system of improvement of budgetary and extra-budgetary financing of educational institutions in Ukraine, in particular the specifics and various mechanisms of raising funds, namely internal sources of financing - state funding (budget) and external sources of financing (non-state financing).\n\nThe analysis of theoretical and methodological aspects of financial and economic support of general secondary education institutions in Ukraine is conducted. The main indicators of budget financing of general secondary education in Ukraine in the recent period are analyzed, namely: the indicator of the volume of educational subvention, the indicator of the average annual salary of pedagogical workers, the indicator "money go after the teacher", the indicator of additional expenditures. The statistics on budget financing of certain regions of Ukraine, including wage costs, are presented.\n\nAlso considered is an indicator, which the amount of education expenditures depends on, namely the indicator of the cost of an educational service. The set of factors that directly influence the cost of an educational service are also presented, namely: external factors, whose influence does not depend on the activity of a particular educational institution and internal factors that directly affect the specifics of an educational institution. The cost of educational services is also considered, depending on the order of its calculation, which in practice is reflected in the "net cost of the educational service" and "the full cost of the educational service".\n\nTaking into account the growing demand and supply of educational services, the article presents the main models of financing education in different countries of the world, in particular the model is oriented towards the free market, characterized by the reduction of public spending on education and development of competition, privatization of educational institutions, development of private educational institutions; the model, oriented on the public market, is characterized by partial privatization of the system of educational institutions, reduction of state funding of education and increase of individuals' investments in quality education; The anti-market model of education financing, oriented towards the alternative integrated society, is characterized by the overwhelming role of the state in solving the issues of education financing, budget financing

This paper examines internal sources of tertiary education financing, strong significant reasons why some public tertiary education institutions are constrained to meet up with their financial needs in public tertiary education institutions in Nigeria. Michael Okpara University of Agriculture Umudike, University of Port Harcourt River State are among public tertiary education institutions in Nigeria. Therefore, the two universities are chosen for extraction of population and sample of this study. The population of this study is 16,000 which comprised 9,000 males and 7,000 female students from Michael Okpara University of Agriculture and University of Port Harcourt River state respectively. Stratified random sampling technique was used to obtain 26 male respondents in three departments from Michael Okpara University of Agriculture Umudike and 28 female students in three departments in University of Port Harcourt River State. This gave a sample size of 162. Descriptive survey research design was adopted for this study. One research question and one hypothesis guided this study. Instrument used for data collection was researcher developed questionnaire “titled, internal sources of tertiary education financing, strong significant reasons why some public tertiary education institutions are constrained to meet up with their financial needs in public tertiary education institutions in Nigeria was used,” with four rating scale of strongly agree, agree, dis agree and strongly disagree. The instrument was validated by two specialists. Cronbach alpha statistics was used to determine the reliability coefficient of this study at 0.78 and 0.97, which shows that the instrument is reliable to be used for this study. Mean and standard deviation were used to analyze the data while t test of independent was used to test the hypothesis. The findings from this study reveals that leasing of facilities, sale of agricultural produce, among others, are varied internal sources public tertiary education institutions could use to augment with meager funds provided by government in public tertiary education institutions in Nigeria. It was recommended from this study that some public tertiary education institutions should engage in internal sources of revenue generations such as: Renting and leasing of facilities, pre degree and Jupeb programs, sale of agricultural produce among others.

The purpose of this study was to determine the effect of the company's external and internal sources of funds on the Profitability of Own Capital (RMS) in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2018-2020. The variables used consist of the dependent variable, namely Rentability of Own Capital (RMS) and independent variables from external funds consisting of Debt to Total Capitalazition Ratio (DCR), Total Debt to Total Assets (DAR) and Debt to Equity (DER). Meanwhile, internal funding sources consist of Flow Back Ratio (FBR). The sampling technique used purposive sampling, namely the sampling technique with certain considerations. The number of samples in this study were 75 manufacturing companies with an observation period of 2018-2020. The results of this study indicate that 4 (four) independent variables consisting of DCR, DAR,DER as an external source of funds and Flowback Ratio as an internal source of funds simultaneously affect to RMS. The conclusion from the results of the study is that companies must be able to increase capital in order to increase the value of the company in order to compete to gain and increase investor confidence. Company management needs to adjust the composition of the use of FBR as internal capital by optimizing the management of assets owned.

This study seeks to: 1) analyze differences in social capital, human resources, and financing sources of small and medium enterprises (SMEs) based on the industry in the Sarbagita Area, Bali Province; 2) analyze performance differences among SMEs based on the industry in the Sarbagita Area, Bali Province. By using a location-stratified random sampling technique to determine the number of samples and accidental sampling to determine respondents, this study used 203 SME business units. We used both primary and secondary data sources to generate quantitative and qualitative data. Data was ge rated by non-behavior observations, structured interviews, and in-depth interviews. The study then analyzed the data using the ANOVA analysis. The results show that: 1) the manufacturing and trade industries have different social capital; there is a difference in human resources between the trade and service Industries; the manufacturing and service industries have different financing sources, especially for internal financing sources while other financing sources do not exhibit different significant difference; 2) SMEs in the manufacturing and trade industries have different performance. Based on the results, this study suggests that: 1) SMEs need to rely on not only internal financing sources because external financing is sufficiently available with affordable interest rates; 2) SME owners need to enhance their networks with their fellow entrepreneurs or with their suppliers to improve their business performance.

The author considers influences of active regulation of operating costs and negative effects (shocks) on financial policy of the Russian public companies. The Russian firms make the choice for benefit of internal financing for the purpose of increase in the corporate benefit in the conditions of external financial restrictions (sectoral sanctions). Growth of the corporate benefit leads to increment of company assets and respectively to welfare of the shareholder. The Russian public companies will review the capital structure in the conditions of growth of adjustment costs. The active policy of the Russian companies is connected with availability of sufficient size of assets which are source of mortgage providing for regulation of capital structure. Thereby, the organization solves problem of adverse selection – financing source selection taking into account its price. The companies are forced to regulate actively the capital structure in the conditions of growth of operating costs and negative shocks. Regulation of capital structure is connected with the aspiration of the company to keep part of debt for its use as financing source. Operating costs are the indicator estimating efficiency of management decisions. The Russian companies will finance the investments, first of all, by internal financing sources. Cash flows are the resource servicing the investment capital. The firms will be attracted the loan capital in the period of deficit of cash flow. The Russian companies will work in logic of precautionary motive, creating monetary stock in the conditions of shocks. The precautionary motive is the protective buffer from negative impacts from the capital markets. Low values of cash flows allow to limit the management concerning his illegal behavior – decision making in private interests.

This study seeks to investigate the differences in firm managers’ preferences in the use of internal funding to meet working capital needs. The data to be analyzed are obtained from the results of the World Bank's Productivity and the Investment Climate Survey on firm managers in 98 developing countries, with a total sample of 1,235 firm managers. The analysis techniques used are linear regression and ordinal logit analysis. This study demonstrates the gender-based differences in the proportion of the use of internal funding sources. Female top managers prefer to use internal funding sources for working capital better than top male managers. This study not only provides a better understanding of the relationship between the existence of top female managers and the preference in the use of internally financed working capital but also informs firms that aim to balance the liquidity and the capital cost efficiency in managing their working capital to provide a more significant opportunity for women to occupy top management positions.