Company's Financial Management Research Articles

Ensuring Financial Stability of Companies on the Basis of International Experience in Construction of Risks Maps, Internal Control and Audit

JEL Classification Codes: G10, G32, M1, M4. 1. Introduction Currently in terms of economic recession short-term priorities in financial activity of companies prevail over long-term. The research of Southern Federal District companies showed that in discussing strategy about 70% of managers focus on period from one to three years. Only 9% of companies have enough confidence in perspectives for business development to predict a strategy for 5-10 years or more. In course of survey 35% of managers of Southern Federal District companies noted that in 2015-2016 their companies faced serious risks and financial difficulties (Aksyonov, Sichev and Holina, 2016). In 2016 35% of responded executives out of 50 companies analyzed in course of research expect deterioration of financial and economic indicators. 16% expect their improvement. Majority of directors (64%) believe that continuation of Russian economy growth can be expected not earlier than 2017 (Aksyonov, Sichev and Holina, 2016). The list of main risks for Russian companies includes following: geopolitical instability, change in consumers' behavior, expensive loans as well as lack of qualified managerial human resources. Currently financial management implements tactical measures to prejudice of strategic interests of companies' development. In conditions of crisis most companies revised their strategies under influence of such factors as ruble devaluation, difficult access to capital (first of all credit resources due to lack of liquid pledge), reduction in oil prices and consequences of sectoral sanctions introduction from US and European Union with regard to Russian companies. Management of a company is connected with delegation of goals and tasks with which a manager faces (Thalassinos et al., 2013; Carstina et al., 2015). Concentration of financial levers (rewards and limitations) in manager's hands strengthens importance of these communications for company's sustainable development. Control action from top is understood at bottom as a signal related with surrounding circumstances and processes. In western culture of production high chances for a victory of strongest are provided thanks to functioning of uniform competitive field (level playing field), action of general for all rules (Shpengler, 1995; Hamid and Won Kie, 2016). According to A. V. Kuznetsov, the operating influence from above is perceived below as signal coordinated to surrounding circumstances and (Kuznetsov, 2015). To ensure financial stability companies must critically assess business processes and revise business models of development (Allegret et al., 2016; Grima et al., 2016). Main direction of activities in modern management system is cost optimization, restructuring of core business processes of financial management on basis of risk management programs, diversification of products and services. Management of company financial stability is connected with more flexibility of financial strategy of development and adaptability when it is important to provide business development with financial resources in related industries, e.g. construction and processing companies (Averina et al., 2016; Havlicek et al., 2013). Currently some Russian companies have stopped large investment projects. In order to ensure financial stability in conditions of increasing limiting factors Russian companies have started reformatting business processes, because they have not formed anti-crisis strategies of development as well as efficient business processes. Digital business transformation can be assigned to modern problems of modern system of company financial management. To ensure financial stability modern companies need to introduce new information technologies not only in production but also in risk assessment system. …

Keputusan investasi, Keputusan Pendanaan dan Kebijakan Dividen Sebagai Determinan Nilai Perusahaan

Optimization of the company's value can be achieved through the implementation of the financial management function, where the financial decisions taken will affect other financial decisions and have an impact on the value of the company's financial management regarding the settlement of the important decisions taken by the company. This study aimed to analyze the influence investment decisions, financing decisions and dividend policy on the value of companies listed on the Indonesia Stock Exchange.Population in this research are manufacturing companies listed on the Stock Exchange from 2010-2013. After the selection of samples by purposive sampling method obtained a sample of 44 observations for four years. The research data was obtained from the published annual reports and stock price data downloaded from www.finance.yahoo.com. The analysis tool used is multiple linear regression and hypothesis testing is done by using the coefficient of determination, F test and t test. The data were processed using SPSS.From the test results can be seen that the variable dividend policy does not affect the value of the company, while variable investment decisions and funding decisions, significantly influence the value of the company. Adjusted R² values obtained of 0.250 or 25%. This shows a 25% coefficient value of the company was affected by investment decisions, financing decisions and dividend policy, while the other 75%, explained by other variables outside the model performed in this study Keywords: Investment Decisions, Decisions Financing, Dividend Policy and Corporate Values.

THE ECONOMIC EFFICIENCY OF AUTOMATED BUDGETING SYSTEM IBM COGNOS TM1 IMPLEMENTATION AT FSUE «RUSSIAN POST»

Currently, the role of budgeting at enterprises is increased considering that a budgeting system improves the efficiency of company financial management, warning both at the planning stage and at the stage of application . of financial resources misallocation. The article discusses issues related to the evaluation of the effectiveness of the automated budgeting system IBM Cognos TM1 implementation at FSUE «Russian Post». Specified are the main goals and objectives of the system implementation, the choice of the budgeting system IBM Cognos TM1is substantiated the key stages of the automated system implementation are identified, the results of assessing the implementation effectiveness of the automated system of budgeting IBM Cognos TM1 under FSUE «Russian Post». are presented. The project effectiveness analysis enables to conclude that the budgeting automation under FSUE «Russian Post» conditions turned out to be economically efficient.

Cost Variability and Cost Behaviour in Manufacturing Enterprises

ABSTRACT. The paper is focused to the variability of costs, cost behaviour and discusses the issues of sticky costs. The main goal of this paper is to analyze the issue of the author's project targeted at the topic of cost behaviour and its projection to the costing systems and confront it with the current state of knowledge in the field. Special attention is paid to the phenomenon of the sticky cost It highlights the importance of this topic at this time of adverse economic developments.The first part of the paper analyzes the general historical changes in the enterprise's cost structures. There is also analyzed the cost behaviour and variability of costs due to the standard view of company performance. Attention is also paid to current view on the issue of costing systems and costing methods.In the second part there are presented findings of completed surveys as proof of the relevance of this issue. From the researches it was found that in recent years there has been a rise in the share of indirect costs up to 40% (till 2009), while almost half of the companies shows steady growth in the portion of these costs. Discussion then follows of this section, in which special attention is paid to area of sticky costs. The author further provides additional research hypotheses and research questions which underlines the need for further exploration of this issue.JEL Classification : D23, D24Keywords: cost behaviour, cost variability, sticky costs, cost remanence, variable costs, fixed costs, cost management.IntroductionCost management is one of the most important issue of company performance and company financial management. Also the issue of the costing systems, methods and techniques is one of the important features of cost management and management accounting. We can observe a continuously growing importance of cost management systems quality that is caused by dramatic changes in business environment. Ecological, economical, social and environmental problems, as well as challenges connected with developing of the consumers, make the companies concerned with existing level and quality of relationship between them and the society, their employees and their consumers. On the one hand new challenges and expectations of the consumers force the companies to develop and introduce policies which foresee their strategy as for dealing with social, ecological and other problems. On the other hand such actions of the companies positively influence their image, increase competitiveness and lead to higher market value (Bilan, 2013).Due to growing competition on globalized markets, companies need the more accurate information about the profitability of their products, customers or markets. All these problems carry higher need for understanding of the consumed costs by different activities and other different areas where the costs play the important role. This change in the business environment is associated also with the suitable change of structure and organization of company activities and structure of products. The importance of these problems has significantly increased during the economic crisis, because many enterprises in the world reduced their performance. According to Belas et al. (2014) average performance of small and medium enterprises decreased by 15.80% in the Czech Republic and 18.78% in Slovakia at this time.The main goal of this paper is to discuss the problems related to the cost behaviour, variability of cost groups and the stickiness of costs in relation to researches carried out by this article's author. The special focus of this paper is to analyze the previously performed research surveys in this field and introduce the importance of the cost variability issues in context of manufacturing companies in Czech Republic. Effort of this paper is also to demonstrate the inadequacy of traditional assessment of cost behaviour based only on the relationship to the volume of production. …

The new role of the going concern concept in corporate finance management

This paper tackles different issues related to the development of the system of the objectives of a company's financial management that also includes its sustainability. Prior to the recent financial crisis the formulation of the corporate finance management objective focused only on the company’s finances that were reported and measured using the company's profit and its worth growth ratios. The financial crisis has highlighted an additional aspect in corporate management, i.e., a need for the company, as an object of the owners' investment, to generate the economic benefit for a prolonged period of time. For the purpose of formulation of the corporate financial management objective it is appropriate to refer not to a single objective or a set of same-level objectives; a much more expedient approach is a creation of the so-called objective tree integrating the requirements of the entity's going concern. The present article analyses certain factors affecting the financial performance of a company, discusses different ratios facilitating the quantitative effect of the factors upon the final results, and practically applies the management by interference model with a view to ensuring the operations of the company for a sufficiently long time