Value Of Assets Research Articles

A critical analysis onto the conundrum of valuation of IP assets as part of liquidation process under IBC, 2016

This study critically examines the valuation of Intellectual Property (IP) assets during the liquidation process under the Insolvency and Bankruptcy Code (IBC), 2016, emphasizing its profound impact on creditor recovery and the efficiency of insolvency proceedings. The research employs a rigorous mixed-methods approach, combining qualitative analysis of high-profile case studies with quantitative assessments of valuation methodologies, such as market, income, and cost approaches. The central research issue revolves around the complexities and challenges of accurately valuing IP assets, which are often unique and lack direct market comparables. The study also scrutinizes the regulatory framework and the pivotal role of registered valuers in ensuring transparent and equitable asset valuation. The findings reveal that precise valuation is not merely a procedural requirement but a critical determinant of liquidation outcomes, influencing the overall recovery rate for creditors and the viability of IP-backed financial instruments. The paper argues that the meticulous calculation of discount rates and adherence to standardized valuation practices can significantly enhance the credibility of the insolvency process, attract more substantial investments, and ultimately lead to superior financial recoveries. This research provides vital insights and robust recommendations for policymakers, legal professionals, and financial analysts, advocating for a more refined and transparent approach to IP asset valuation under the IBC, thereby strengthening India's insolvency framework and market integrity.

Evolution of the fair value concept in accounting and its impact on the theory and practice of financial reporting

Subject. This article examines the evolution of the concept of Fair Value in accounting and its impact on the theory and practice of financial reporting. Objectives. The article aims to study the historical development of the concept of Fair Value in international and national accounting practices, and assess the impact of its application on the reliability and relevance of financial statements. Methods. For the study, I used the methods of theoretical analysis and synthesis, as well as comparative analysis. Results. The article finds that the transition from historical value to fair value is due to the need to provide more relevant, objective and significant information to users of financial statements. The evolution of this concept has led to changes in approaches to the valuation of assets and liabilities, improved transparency and comparability of reporting. The article reveals the problems of applying fair value associated with the subjectivity of assessments, the complexity of their application and the need to improve the skills of specialists. Conclusions. The article concludes that the essential role of fair value in modern accounting is recognized, and there is the need for its correct application. Improving the methodological and regulatory framework, harmonizing national standards with international standards will help improve the quality of financial reporting, meet the information needs of stakeholders, as well as improve the comparability of data at the international level.

Micro-level welfare effects of integrated soil fertility management in Northern Ghana

Integrated Soil Fertility Management (ISFM) is promoted as a sustainable approach to enhance farm productivity and ensure a reliable food supply. This study examines the association between ISFM, maize yield, income, total asset value, and food security using a quasi-experimental approach, drawing on data from 966 farm households in Ghana. The results show that ISFM adoption increases crop yield by 878 kg/ha, income by $453, and total asset value by $765. Regarding food intake, ISFM adoption boosts the consumption of calories, proteins, and fats during food-scarce periods by 2406 kcal/day, 52 kg/day, and 90 kg/day, respectively. Consistent with extensive margin findings, the intensity of ISFM adoption is positively correlated with yield, income, total asset value, and food security. However, increasing the number of ISFM practices does not necessarily lead to higher outcomes, as it may be associated with higher labour costs. These results are robust across various model specifications and combinations of ISFM practices. Sustaining the welfare gains from ISFM adoption will require improved access to agricultural production information from research institutions.

Insurrection through the balance sheet

Abstract What has actually happened to the political economy of the United States over the last half-century? For too long now, ‘neoliberalism’ has been the standard answer given, yet today, the term seems to have lost both its analytic and critical capacities. Melinda Cooper’s Counterrevolution offers readers a fresh and productive response to this fundamental question of contemporary political economy. Cooper comes neither to praise nor bury neoliberalism but to shift from the level of generalizing accounts or polemics to the level of concrete ideas and the policies they have engendered. She directs attention away from the Chicago school and toward both the Virginia School of public choice theory and a long line of supply-side thinkers. On strictly economic grounds, these two strands ought to be in tension, but Cooper illuminates their political convergence: agreeing to constrain ‘certain kinds of public spending’, they implemented a politics committed to inflating asset values for the wealthy while holding workers’ wage growth in check. This balance-sheet insurrection, which directs the flow of capitalist value upward, stopped and reversed the potential Keynesian revolution that had been underway in the 1950s and 1960s.

The Impact of COVID-19 Pandemic on the Performance of Food and Beverage Micro and Small Enterprises (MSEs): A Case Study of Langsa City, Aceh Province

The PSBB and PPKM policies were perceived to have caused economic downturns by restricting community activities, including productive economic endeavors. The primary issue in this study is the decline in the GDP of the accommodation food, and beverage sectors in Langsa City in 2020. The research objectives are formulated as follows: (1) to analyze the impact of the Covid-19 pandemic on the income of food and beverage MSMEs in Langsa City; (2) to analyze the impact of the Covid-19 pandemic on the production levels of food and beverage MSMEs in Langsa City; (3) to analyze the impact of the Covid-19 pandemic on the assets of food and beverage MSMEs in Langsa City; and (4) to analyze the impact of the Covid-19 pandemic on the workforce of food and beverage MSMEs in Langsa City. The study was conducted in Langsa City, Aceh Province, utilizing primary data, A purposive sample of 50 MSME owners in Langsa City was selected. Respondents were not categorized by business scale (micro or small businesses). The accidental sampling method was used to determine respondents and data was collected through structured interviews using a questionnaire. The impact of the Covid-19 pandemic on the performance of food and beverage MSMEs in Langsa City was analyzed using for indicators: (1) MSME income, (2) sales volume, (3) assets, and (4) workforce size. A descriptive analysis was performed, followed by a paired sample t-test (with a = 0.05) to compare conditions before and during the Covid-19 pandemic. The analysis concluded that: (1) there was a significant decline in the income of food and beverage MSMEs in Langsa City during the Covid-19 pandemic; (2) there was a significant decline in sales volume; (3) there was a significant reduction in the value of MSME assets; and (4) there was a significant decrease in the number of employees. Keywords: Business, Assets, Number of Employees, Income, Sales, MSMEs

A Comparison of the Vasicek and Cox, Ingersoll, and Ross Interest Rate Models in Valuation of Insurance Assets, Liabilities and Surplus

Insurance Company’s cash flows are subjected to the risk of interest rate (C-3 risk). To curb the effect of this risk, Insurance companies normally adopts an interest period model that predicts the movement of the rates of interest. The most common models adopted by the Insurance Companies are the vasicek (1977) model and The Cox, Ingersoll and Ross (1985) Model. These two models are stochastic single period short-rate models; however, they exhibit different assumptions and because of this, the future values of insurance Assets and liabilities are likely to differ when these models are applied to estimate their values. Valuing of Insurance Assets and liabilities, especially in the Kenyan market is very challenging because of the tremendous fluctuations of interest rates as a result of gradual increments of the rate of inflation. In order for insurance companies to correctly value their insurance policies, they need to have a substantive Knowledge of their cash flows. The current valuation methods of insurance assets, liabilities and Surplus based on a stochastic interest rate models do not consider the possibility of occurrence of model risk, and therefore there is a possibility of either under estimating the future values of insurance assets and liabilities or over estimating. In this research paper, Geometric simulation was used to explore the effect of model risk By creating a comparison between The vacisek and the Cox, Ingersoll and Ross interest rate model. First, we evaluated the value of an insurance company’s assets and liabilities by assuming that the interest rate process is followed by the Cox, Ingersoll and Ross model and The vasicek (1977). Model risk arose by the different Values obtained for both the vacisek and the Cox, Ingersoll and Ross model. The results of the simulation showed that the cox, Ingersoll and Ross interest rate model provided a better fit of interest as compared to The Vasicek model.

The impact of institutionalized representation: creditors' committees and the resolution of corporate liquidation bankruptcies

We utilize micro-level data on corporate liquidation bankruptcies in Slovenia to conduct the first systematic quantitative investigation of the impact of creditors' committees (CCs) on liquidation bankruptcy outcomes. Slovenian law permits, but does not mandate, the establishment of a CC in liquidation bankruptcy proceedings, ensuring variation in CC incidence across cases. To address the non-random formation of CCs, we use propensity score matching and employ a rich set of covariates. Our findings reveal that CCs boost the liquidation value of bankrupt debtors' assets, thereby facilitating recovery, particularly for priority and ordinary unsecured creditors. Additionally, CCs elevate the overall rate of creditors' recovery relative to the value of liquidated assets. However, CCs also prolong the duration of proceedings and increase the likelihood of litigation. Our analysis thus underscores the multifaceted nature of the effect of institutionalized creditor representation on the efficacy of liquidation bankruptcy proceedings.

Impact of Financial Intermediation and Regulatory Frameworks on Financial Deepening and Economic Growth: Insights from Lesotho

Purpose: The purpose of this study is to analyse the impact of financial intermediation and regulatory frameworks on financial deepening and economic growth in Lesotho, utilizing data from 2003 to 2022. The objective is to explore the relationships between selected financial and economic indicators and assessing their influence on financial deepening. Methodology: This study utilized secondary time series data, which poses challenges regarding authenticity and reliability since it was collected by external parties. However, these concerns were addressed by using data from reputable global agencies like the IMF, World Bank, and the Central Bank of Lesotho’s annual report from 2003 to 2022. The analysis was conducted using the Ordinary Least Squares (OLS) regression method. Findings: The findings highlight the complex role of financial intermediation and regulatory frameworks in shaping financial deepening and economic growth. Higher cash reserve ratios and treasury bill rates negatively affect financial deepening by reducing liquidity and increasing credit costs. However, increased commercial bank deposits with the central bank positively contribute to financial stability and deepening. Moderate inflation also fosters financial deepening by raising the nominal value of financial assets. While ATMs per capita enhance financial access and growth, an increase in bank branches per capita shows inefficiencies, underscoring the need for effective infrastructure and service delivery. Unique Contribution to Theory, Policy and Practice: The study suggests that policymakers should adjust cash reserve requirements, monitor credit expansion to avoid over-lending, and improve banking infrastructure. It highlights the need for careful interest rate management and promoting financial innovation to enhance market depth.

HANZE v2.1: an improved database of flood impacts in Europe from 1870 to 2020

Abstract. Assessing long-term trends in flood losses and attributing them to climatic and socioeconomic changes requires comprehensive and systematic collection of historical information. Here, we present flood impact data for Europe that are part of the HANZE (Historical Analysis of Natural HaZards) database. The dataset covers riverine, pluvial, coastal, and compound floods that have occurred in 42 European countries between 1870 and 2020. The data were obtained by extensive data collection from more than 800 sources ranging from news reports through government databases to scientific papers. The dataset includes 2521 events characterized by at least one impact statistic: area inundated, fatalities, persons affected. or economic loss. Economic losses are presented both in the original currencies and price levels and with the inflation and exchange rate adjusted to the 2020 value of the euro. The spatial footprint of affected areas is consistently recorded using more than 1400 subnational units corresponding, with minor exceptions, to the European Union's Nomenclature of Territorial Units for Statistics (NUTS) level 3. Daily start and end dates, information on causes of the events, notes on data quality issues or associated non-flood impacts, and full bibliography of each record supplement the dataset. Apart from the possibility of downloading the data (https://doi.org/10.5281/zenodo.8410025; Paprotny, 2023a), the database can be viewed, filtered, and visualized online at https://naturalhazards.eu (last access: 4 November 2024). The dataset is designed to be complementary to HANZE-Exposure, a high-resolution model of historical exposure changes (such as population and asset values) and be easily usable in statistical and spatial analyses, including multi-hazard studies.

Adaptation to climate variability and household welfare outcomes in Uganda

Over the last one decade, most of the empirical studies on climate variability have largely concentrated on assessing the effect of climate variability on agriculture. Little attention has been given to the analysis of what factors determine the decision to adapt to climate variability and what impact does it has on welfare of the adapting households. This paper therefore, assesses the determinants of adaptation to climate variability and how it influences welfare of the farming households in Uganda. To achieve this, the study utilizes six waves of Uganda National Panel survey collected by Uganda Bureau of Statistics spanning over a period of 10 years from 2009 to 2019 and the switching regression model for empirical analysis. The findings indicate that adapting to climate variability is beneficial to adaptors as it safeguards welfare deterioration. On the other hand, presence of climate variability, age of the household head, the value of household assets, location, formal land ownership, having main occupation as agriculture and availability of extension services were identified as key determinants of the decision to adapt to climate variability among farming households in Uganda. These findings thus highlight the importance to have measures to improve adaptation process at the same time enhancing household welfare.

The CAPM: Exploring its Empirical Evidence on NSE Nifty-From the Period 2008 to 2023

The issue of forecasting or predicting asset returns is fundamental to financial economics and most often the Capital Asset Pricing Model (CAPM) is adopted for estimating the expected rate of return based on systematic risk. This paper focuses on the empirical testing of the CAPM in the Indian market based on the Nifty 50 index from April 2008 to March 2023, which covers the period of the COVID-19 pandemic, the Goods and Services Tax (GST) reforms and demonetisation. In the context of this study, Lintner, Miller and Scholes, Black, Jensen and Scholes tests are used with a new dataset to examine the CAPM. This study examines the empirical validity of the CAPM in the context of the Indian market, more specifically the Nifty 50 index, during a period of significant economic change. Thus, the analysis is centred around the interaction of systematic risk, residual variance and average returns. The study identifies a positive but non-significant relationship between average returns with systematic risk and a slightly higher risk-free return compared to that of Lintner. The variance of residuals also helps to explain average returns, while at the same time, actual returns are higher than market returns. The findings of the current study partially support Lintner, Miller and Scholes’ earlier work while not supporting Black, Jensen and Scholes’(BJS) conclusions. In the context of the BJS methodology, 38 per cent of the securities have significant non-zero alphas, which means CAPM does not operate perfectly in the Indian market. The findings that alphas are non-zero indicate the inefficiency of the National Stock Exchange (Nifty 50), therefore, the need for regulation by agencies such as the Securities and Exchange Board of India (SEBI) arises. Equity analysts and portfolio managers must not only use CAPM for asset valuation blindly without appreciating its empirical flaws. This paper revisits the CAPM with recent data thus enriching the limited literature on the CAPM in the Indian scenario where CAPM has however a very restricted application in explaining asset returns in the context of the Nifty 50.

Will fighting climate change affect commercial banks? A carbon tax policy simulation

Policies implemented to address climate change, especially carbon tax policies, have profound impacts on risk management and credit losses in the financial system. Existing research suggests that climate risks may lead to high‑carbon-emission companies facing asset stranding and credit downgrades; however, their specific effects on credit losses in the banking system have not been thoroughly elucidated. This study uses data from 21 listed Chinese commercial banks and 3163 firms for 2020, applying climate stress-testing to construct 16 carbon tax scenarios. These scenarios simulate the effects of a carbon tax on firms' asset values and financial stability and estimate the potential transmission of these effects to credit losses in Chinese commercial banks. Our findings reveal that introducing a carbon tax significantly increases bank credit losses, with credit losses escalating exponentially as tax rates increase. State-owned commercial banks experience the highest losses, followed by joint-stock and city banks. The primary contributors to these credit losses are high‑carbon industries such as electricity, manufacturing, and transportation. These findings underscore how carbon tax policies can decrease firms' asset values and thereby increase banks' credit risks, providing essential insights for policymakers designing climate policies.

Modelling of Dividend Payout Policy for Polish Public Companies

Purpose: The purpose of this research is to identify drivers of dividend payouts in energy companies listed on the Warsaw Stock Exchange (WSE) in the pre-COVID-19 pandemic decade, taking into account potential determinants such as general economic situation, company’s financial efficiency, value of assets, lagged dividend payout, earnings, ownership of the company – main shareholders and structure of statutory bodies including women presence. Design/methodology/approach: Correlation analysis and pooled regression models to determine the potential determinants of payouts are used. Firms' financial performance is reflected by selected individual financial ratios and a specially constructed vector synthetic measure VSMD. Findings: Findings reveal that dividend payouts of energy companies in Poland are irregular. Dividend payments significantly depend on firms’ financial efficiency, the size of their assets, lagged dividend payouts and ownership model, while the gender structure of statutory bodies has no impact on dividend payouts. The dividend payment decisions are implied by the current economic situation. Research limitations/implications: Limitations arise from the longitudinal sample design and data selection. Only Poland is considering with rather small WSE market, and the study concerns 9 companies described by 14 financial ratios (already selected) and set of variables for each year in 10 years timespan. Our VSMD measure needs pattern and anti-pattern which requires data from the entire market to be determined. Thus, the list of diagnostic variables cannot be simply copied for different “national” markets. Originality/value: This study contributes to research on the determinants of dividend policy. It introduces to the investigation the author's synthetic measure of firm financial efficiency. Explains dividend payments in Polish energy companies in the period 2010-2019 proposes a consistent baseline for research after the pandemic and after the war in Ukraine.

Green disguise or real action? The truth behind corporate greenwashing under stringent climate policy

Stringent climate policies have significantly impacted corporate operations and asset values, subjecting companies to increased pressure regarding environmental and social responsibilities, which may lead to the adoption of disingenuous greenwashing practices. Utilizing data from 1219 listed companies on China's A-share market from 2011 to 2022, this study investigates the relationship between stringent climate policies and corporate greenwashing behavior. The findings of this paper are as follows: First, there is a significant positive correlation between stringent climate policies and corporate greenwashing behavior, which has been validated through robustness tests; second, the impact of climate policy on corporate greenwashing exhibits heterogeneity. Enterprises located in the western and eastern regions, those with insufficient technological content, labor-intensive, and highly polluting companies have a greater incentive to engage in greenwashing activities; finally, this study confirms the transmission pathways of internal financial distress and external environmental subsidies as climate risks contributing to corporate greenwashing. This paper holds certain reference value for the government in establishing and improving mechanisms for identifying corporate greenwashing behavior, setting corporate conduct standards, and perfecting the corresponding regulatory system.

Research on the Application of Mathematics in Finance

Abstract. Mathematics is a fundamental science and a problem-solving method that plays an important role in revealing the essential laws of the development of certain things. It has rigorous logic, high abstractness, and wide applicability. This brings great difficulties to enterprises, especially high school mathematics because it involves a wide range of knowledge points and complex calculations. Among them, the formation of financial mathematics has greatly promoted the development of China's financial industry. Moreover, in solving financial problems, relevant knowledge and theories of mathematics can be used to analyze and explore financial laws, and the application effect is significant, for example, using deterministic mathematical method and nondeterministic mathematical method to solving question about financial investment and returns; building securities investment portfolio model or asset valuation model to calculating and expressing some economic models. Based on this, this article discusses the application of mathematical knowledge to several financial problems, analyzes the current problems, and looks forward to the future of financial mathematics.

Pengaruh Depresiasi Terhadap Nilai Wajar Aset Dan Implikasinya Terhadap Penghapusan Barang Milik Negara (BMN)

The purpose of this paper is to determine the effect of depreciation value calculations on the fair value of a State Property (BMN) asset and the impacts caused when the asset is written off either through pure write-off and transfer. Adjusting the applicable regulations regarding the mechanism for calculating the depreciation value of an asset. What is the procedure for recording the fair value of assets and writing off State Property (BMN) in accordance with applicable regulations. Disclosure and recording in the financial statements of a government institution must be based on correct calculations and refer to applicable laws and regulations. As a reference for the office to carry out the process of managing State Property (BMN) asset units so that they are appropriate and do not experience fatal damage so that the useful life of the goods can be as long as possible even though the regulations have an age limit. To gain a deeper understanding of the topic being studied, the researcher used a qualitative descriptive research method. Using data obtained from the State Asset Management Information System (SIMAN) application at the Banggai District Attorney's Office Branch in Bunta and direct observation of the asset objects to be studied.

Legal Certainty in the Division of Joint Property after Divorce

This study aims to analyze the legal certainty in the distribution of joint property after divorce, with an emphasis on the challenges faced in the implementation of the law in Indonesia. The division of joint property is a crucial issue in the context of divorce which often causes disputes between former spouses, where the principles of justice and equality should take precedence. In this study, a normative juridical approach is used to examine laws and regulations, legal doctrines, and court decisions related to the division of common property, with a focus on Law Number 1 of 1974 concerning Marriage and the Civil Code. The results show that despite the legal provisions governing the division of common property, its implementation is often hampered by various factors, including differences in interpretation among judges, the existence of cultural values that influence decisions, and technical obstacles in asset valuation. Variations in court decisions create legal uncertainty that not only harms one party, but also impacts the welfare of children involved in divorce. Uncertainty about the rights and obligations of each party has the potential to cause prolonged conflicts and harm all parties. As part of the analysis, the study also highlights the social and economic impact of legal uncertainty in the distribution of assets, especially for the financially weaker parties. To improve fairness and certainty in the division of common property, this study recommends the need for more detailed and uniform guidelines in court decision-making procedures, as well as harmonization between national and local regulations. Thus, it is hoped that the process of distributing joint property after divorce can be carried out in a fairer, more efficient, and transparent manner, so that the interests of all parties, especially children, can be well protected.

Analisis Financial Distress Menggunakan Metode Altman Z-Score Pada PT Sepatu Bata Tbk Periode 2021-2023

PT Sepatu Bata Tbk is one of the companies listed on the IDX which is engaged in the footwear industry and produces various types of leather shoes and sandals. The company's finances began to deteriorate in 2020, and continues to this day. In its latest financial report, Bata posted losses for four consecutive years. The research objectives to be achieved in this study are to determine the analysis of the level of bankruptcy using the Altman Z-Score method at PT Sepatu Bata Tbk for the 2021-2023 period. The analysis technique used in this study is to use the Altman Z-Score model. in 2021 a Z-Score value of 2.55 was obtained. With an assessment criterion of 1.81 < 2.55 < 2.99, which means that PT Sepatu Bata Tbk is in the gray area category. From this study, it was found that in 2022, a Z-score value of 1.64 was obtained with an assessment criterion of 1.64 < 1.81, which means that PT Sepatu Bata Tbk is in the bankrupt category. While in 2023, a Z-score value of 0.48 was obtained with an assessment criterion of 0.48 < 1.81, which means that PT Sepatu Bata Tbk is in the bankrupt category. PT Sepatu Bata Tbk in 2021 has an X1 ratio of 0.1815. In 2022 the value of the X1 ratio of PT Sepatu Bata Tbk decreased, namely 0.0121. Then in 2023 the X1 ratio value decreased again, namely -0.0847. The decrease in the X1 ratio value of PT Sepatu Bata Tbk every year is caused by the unstable value of current assets, current debt, and total assets of PT Sepatu Bata Tbk. Ratio X3 of PT Sepatu Bata Tbk in 2021 has a value of -0.297. In 2022 the X3 ratio also has a value of -0.09. In 2023 the value of the X3 ratio of PT Sepatu Bata Tbk decreased, namely -0.27. The minus value in the X3 ratio of PT Sepatu Bata is because the company suffered losses in those 3 years. From the research it can be concluded that PT Sepatu Bata Tbk for the period 2021-2023 using the Altman Z-score model, the results obtained in 2021 PT Sepatu Bata Tbk is in a gray area, which means that the company is in an unhealthy financial condition and is not bankrupt either. Meanwhile, in 2022 and 2023 PT. Sepatu Bata Tbk is in bankrupt condition, which means that the company's financial condition is not healthy

Examining the Impact of Digital Economy on Consumer Preferences in the Metaverse Era: An Empirical Study on the Role of NFTs and Tokenization in Changing Purchase Intentions

This study aims to investigate the impact of the digital economy on consumer preferences in the Metaverse era, focusing on the role of Non-Fungible Tokens (NFTs) and tokenization in changing purchase intentions. Using a mixed-methods approach, this study combines quantitative and qualitative analysis to gain a comprehensive understanding of the key determinants of consumer purchase intentions in a rapidly evolving digital context. The results of the quantitative analysis show that perceived value, trust in blockchain technology, and user experience significantly influence consumer purchase intentions towards NFTs. Qualitative analysis through in-depth interviews reveals that scarcity, digital ownership, and community involvement are the main factors driving NFT adoption, while lack of technological understanding and regulatory uncertainty are the main barriers. This study also introduces novelty through the use of machine learning-based sentiment analysis and social network analysis to explore the role of social interactions in the formation of purchase intentions. These findings make important contributions to the literature on the digital economy by offering new insights into consumer dynamics in the Metaverse and highlighting the need for marketing strategies that focus on creating community value and immersive user experiences. Practical implications of this study include the need for consumer education and clear regulations to increase NFT adoption, as well as marketing strategies that leverage the emotional value and scarcity of digital assets. This research contributes to a better understanding of consumer behavior in the digital age and offers recommendations for further research in this area.

Assessment of solvency-liquidity relationship in food and meat producing organizations

Cash flow management in commercial organizations of the production sector is one of the key problems of financial management in the post-crisis stages of the pandemic and its overcoming, which requires new solutions. This article presents practical solutions for improving financial management in the context of liquidity-solvency relationship, cash flow, and current asset valuation in six leading companies that produce food and meat products by capitalization listed on the world stock exchange and studied. Since the role of artificial intelligence is highly valued in the current period, financial management professionals have also started to use various learning forecasting models in order to increase the efficiency of their decision-making. Forecasting the capital structure in commercial organizations with an artificial intelligence model is a completely new approach in the financial management system, the main task of which is to define the preferred ratio of the components of liabilities in connection with the minimum cost of capital.