Economic Activity Of Company Research Articles

Використання комп’ютерних технологій в епоху цифрової економіки

The article is devoted to the assessment of the use of computer technologies in the economy. The impact of digital technologies on the development of domestic companies is described, changes in economic indicators are evaluated, taking into account the implementation of digital economy solutions. The article discusses the use of computer technologies in the agricultural sector, the medical industry and the sphere of State regulation. Real examples of the introduction of automation and robotization at large production enterprises and their positive impact on the economic condition of the company, in compliance with environmental norms and standards of Industry 5.0 are presented. When considering the agrarian industry, progressive strategies for the use of artificial intelligence, Big Data technologies, remote process control are allocated, which increased competitiveness and contributed to the transition of companies from the local market to the international one. In the course of a heuristic study of the medical field, it was found that robotization affected the improvement of economic indicators, which was caused by an increase in the efficiency and quality of production of medicines with the international GMP standard. It is found that the computerization of document management and time management systems contributed to improving the level of trust in public medical services provided by doctors. The analysis of statistical data has shown that the number of enterprises using digital technologies in the management and sale of goods is increasing, so the introduction of automation and robotization is necessary to improve the performance of enterprises. Analysis of the volume of digital trade in monetary terms showed a significant increase over the studied period of time due to the introduction of computer technologies. The article states that digitalization and automation have a positive impact on the economic activity of companies not only at the micro level, since the digitalization strategies of companies can be transferred to the macro level and applied in all spheres of life. Prospects for further research include an analysis of the economic impact of digitalization, the search for optimal solutions for automating processes while reducing the cost of technology.

Reference and fiducial Points of Modern intra-corporate capital flow control in the organization and the functioning of an Economic Entity

The internal corporate financial control service (IFC) is an integral functional element of the management system of both the company as a whole and its individual business processes, along with accounting and economic and financial analysis. It is difficult to overestimate the importance of the activities of the specialists of this unit. In the current economic and political situation of the withdrawal of domestic companies from the orbit of the world market and the departure of foreign firms from Russia, the activities of the company’s controllers and analysts are of a real paramount importance, therefore the very methodology of organizing control should be weighed against its adequacy to the current situation in our country and abroad.This article reveals the role of internal corporate financial control in the search for measures to stabilize the financial and economic activities of companies. The authors consider the main goal and objective of their work to be the study of the adequacy of the existing control system to modern challenges. To do this, they revealed the causes and consequences of the new goal-orientation and targeting of the IFC service, characterized its reference points, and showed the results of the intensification of intra-corporate financial control measures activation observed in the modern practice. The methodological section of the study describes the process of generating signal indicators developed on the basis of our own internal analysis-control algorithms that take into consideration the industry specifics of financial and economic activity. The indicators determined by the authors make it possible to activate the measures of internal corporate financial control and obtain practical results in the form of developing an anti-crisis plan for optimizing costs and expenses, leveling the identified risks.

Topical issues of regulation of land and property relations in the implementation of production and economic activities of companies in the fuel and energy complex: review of panel discussion

The article suggests an overview of the round table organized on June 22, 2022 by Gazprom Energo LLC jointly by the Peoples' Friendship University of Russia with the support of the State University of Land with active participation of Rosreestr and the Federal Tax Service of Russia on topical issues of regulation of land and property relations in implementing production and economic activities of companies in the fuel and energy complex. In this regard, the organizers proposed to discuss the prospects for legislative support of land management and cadastral activities, topical issues of establishing restrictions and encumbrances of land within the framework of production and economic activities of enterprises of the fuel and energy complex, practical aspects of involving ownerless objects in the economic turnover power grid complex and heat supply facilities, the possibilities of optimizing land payments and real estate taxation.

ТЕОРЕТИЧЕСКАЯ СУЩНОСТЬ ЭКОНОМИЧЕСКОГО АНАЛИЗА И ЕГО РОЛЬ В РАЗВИТИИ ЭКОНОМИКИ

The article examines the theoretical essence of economic analysis with the allocation of its main principles and main sources of information. Success in any activity in the long term is directly dependent on the ability to competently analyze financial issues of enterprises in order to make the most effective management decisions and improve the financial and economic activities of companies. Some problems of economic analysis at the current stage of economic development are touched upon.

Analysis of the economic efficiency of the railway property (Russian experience)

Railway transport is an important component of the economic complex of the Russian Federation. Companies, assessing their financial and economic activities, strive to improve the efficiency of all areas of operation. In this connection, the necessity of analyzing the financial and economic activities of companies has been determined, which will allow assessing the effectiveness of the main vectors of development. Improving the information and analytical system for supporting management decision-making in terms of formalizing criteria for evaluating decisions focused on the long-term development of the company is most relevant. The share of non-current assets in the property of JSC «Russian Railways» in 2011 was 91.04%, then in 10 years in 2021 it was 95.75%. Therefore, the analysis of the efficiency of the use of non-current assets is of the greatest interest. The success of a business primarily depends on the analytical activity of the management staff, their professional knowledge and skills. As a result, the construction and analysis of a multifactor model of return on non-current assets is most relevant in today's times. In the article, the authors have developed a 5-factor model for factor analysis of the return on non-current assets. The relationship of these five factors with the resulting indicator is functional. The article reveals the influence of factors affecting the change in the return on non-current assets and gives the author's methodological approaches for its calculation (methods of factor analysis developed by Filatov E.A.).

Автоматизація процесів підготовки та податкового адміністрування звітності в розрізі країн: концептуальні підходи

Introduction. Preparation of Country-by-Country Reporting (CbCR) in accordance with the requirements of BEPS13, which is submitted by the parent company of an international group of companies to the jurisdiction by location, should be automatic and based on accounting and financial data. Companies need to prepare a consistent three-level reporting package that discloses information about the global distribution of income, economic activity of companies at the global level. In this regard, there is a need for IT tools to support the implementation of the initiative to comply with contractual obligations to exchange information. Problem Statement. The lack of a conceptual solution to automate the process of preparing the CbCR report, which will allow to prepare the report considering the characteristics of groups of companies and ensure the confidentiality of its use and tax administration, makes it impossible to obtain information quickly. Purpose. Highlighting the prospects for the introduction of the standard for automatic exchange of tax information in Ukraine and setting tasks for the development of a universal solution for automating the processes of reporting and tax administration in order to combat income tax evasion. Methods. General scientific and special methods are used: analysis, synthesis, grouping, description, comparison, system approach, modeling and generalization. Results.The basis for the preparation and analysis of the CbCR report for further automatic exchange, in accordance with the BEPS plan (step 13), is the automation of reporting, which is based on the construction of a unified accounting methodology, optimization of CbCR preparation methods, integration with the accounting systems of various members of the МGC and updating XML schemas with considering the requirements of different tax jurisdictions. It is the development of a comprehensive solution that includes analytical, methodological tools and has a reliable degree of protection to preserve the confidentiality of information, which will help to get an overall picture of the current tax situation of the MGC and the profit erosion risks. Conclusions. In order to achieve the set goal and objectives, conceptual approaches are presented for the development of a universal solution for automating the processes of reporting and tax administration with the aim of countering BEPS in the areas of implementation of OECD norms on the confidentiality of information that is the subject of international exchange.

THE IMPORTANCE, ROLE AND PLACE OF MANAGEMENT ACCOUNTING IN THE ENTERPRISE MANAGEMENT SYSTEM

The article discusses the concept and basic methodological provisions of management accounting, as well as its role and place in the cost management system and in the budgeting system. Currently, Western, domestic scientific and practical publications express various points of view on the essence, place and role of management accounting in the management system of financial and economic activities of companies. Management accounting is a value–adding process of continuous improvement of planning, design, evaluation and functioning of financial and nonfinancial information systems that guides management actions, motivates behavior, supports and creates cultural values necessary to achieve strategic, tactical and operational goals of the organization. The points of view of various scientists on management accounting are also considered. The authors propose to achieve any goals and formulate as a system of information flow in the form of management reports aimed at achieving any goal and making effective and operational decisions on this basis.

Resource efficiency of metallurgical production

The balanced development of the world community in the next decade implies achievement of sustainable development goals by increasing the efficiency of resources utilization in the economic, social and environmental spheres of human activity. Within the framework of globalization processes, which inevitably affect the national economic, social and environmental agenda, the last two spheres are becoming increasingly important. The main measures of the state national policy of the Russian Federation are aimed at solving social and economic problems that ensure realization of the right of every person to a favorable environment. Timely solution of the problems of social and environmental well-being, as indicators of the life quality of population, is a priority task of the state authorities of the regions together with the top management of city-forming enterprises that bear major social and environmental burden. Increase in the resources utilization efficiency is of particular importance in regions with a dominant location of metallurgical production. Atmosphere and water pollution, a high level of occupational morbidity and injuries caused by equipment wear and safety violations at production facilities, the prevalence of mortality over births, an intensive migration outflow of the population, depreciation of engineering infrastructure with simultaneously growing industrial output reflect the imbalance in situation of the metallurgical region, delay its sustainable development. The conducted scientific research made it possible to develop a system of indicators for assessing the resource efficiency of metallurgical production with their grouping by development components. It makes possible for the management to evaluate the contribution of each set of components to the resulting value, propose measures and guidelines for optimizing coefficients, identify business competitiveness growth factors, determine investment targets, and also demonstrate to the world community the transformation of production and economic activities of companies in accordance with global trends in resource conservation and sustainability.

Other Comprehensive Income (OCI) Influenced by the Covid-19 Pandemic – Illustrated with the Example of Entities Listed on the Warsaw Stock Exchange (GPW)

The Covid-19 pandemic is undoubtedly the event that has had the strongest impact on the economic activity of companies in the last two years and was reflected in their financial statements. The aim of the study was to verify whether the effects of the Covid-19 pandemic are visible in the area of other comprehensive income presented in the statement of comprehensive income. The study fits into a wider trend of research concerning financial information presented in this element of a financial statement, but in connection with the current subject of the Covid-19 pandemic. The study presents the results of the research on the OCI value in the statements of comprehensive income of the 91 largest entities listed on the Warsaw Stock Exchange. The comparative analysis covered data from the pandemic period (2020-2021) and the year before it (2019).

Conceptual framework for application of modern financial technologies in the Russian industry

This article presents the author’s position on the use of modern financial technologies (FinTech) in the practice of managing domestic industrial companies. In particular, the use of modern financial technologies is possible in the current (operational) financial and economic activities of companies, as well as in their investment and financial activities. The authors considered the key aspects of the development of financial technologies, while identifying five waves of active development of FinTech in Russia. The authors set out the results of a comprehensive analysis of the mechanisms of functioning of FinTech in the modern economic conditions of domestic industrial companies using the example of e-commerce. The features of existing e-commerce systems are considered: B2B, B2G, B2C and C2C. An overview of the possibilities of using various instruments of financial technologies in various types of activities of Russian industrial companies is given. Based on the analysis of actual data from 156 largest industrial companies in Russia (out of 17 industries) included in the Expert-400 rating of the country’s four hundred largest companies, the directions of the formation of modern financial relations, including the supply of goods and services based on the digitalization of management processes using modern tools: e-commerce, including blockchain platforms, as well as Big Data, mobile applications for employees or clients, machine learning. It is shown that practically all the largest industrial companies in Russia – the leaders of their industries – are actively introducing and using all modern financial technologies in their activities. The directions of transformation of business processes of industrial companies in Russia are investigated within the framework of the concept of sustainable development of their business in terms of using a variety of FinTech tools and digitalization. Prospects for the use of modern financial technology tools in industrial production in the first half of the XXI century are considered

기업의 투자결정에 영향을 미치는 요인 분석

The purpose of this study is to empirically analyze the background of the sluggish investment activities of companies. A sluggish investment by companies can negatively affect the future economy by causing not only economic growth but also a slowdown in capital accumulation. This study used KIS-VALUE company-specific data from 1990 to 2019 to analyze the factors that influence corporate investment. And, by setting the market interest rate, exchange rate, and GDP as explanatory variables, we tried to analyze the factors that influence investment decisions. The results are summarized as follows. First, in the case of cash flow, it was found that the higher the ratio of the company’s cash flow in the basic model and the extended model, the positive effect on the company’s investment. However, when analyzing by dividing the period, the coefficient values before the financial crisis were somewhat higher, confirming that they were more sensitive to the period. In addition, there was no statistical significance after the global financial crisis, indicating that the increase in cash flow for companies is not leading to investment. Second, Tobin’s Q was found to have a positive effect on investment regardless of period in the basic model. However, in the expanded model, statistical significance disappeared after the financial crisis. This can be interpreted as a contraction in investment activities after companies underwent restructuring to overcome the foreign exchange crisis. Third. GDP, Exchange Rates, and Interest Rates can be interpreted as results consistent with economic theory. An increase in the economic growth rate(GDP) will have a positive effect on the economic activities of companies and thus increase investment. Similarly, it was confirmed that fluctuations in exchange rates and interest rates may affect corporate profits and lead to investment contraction or expansion. However, the Exchange Rate showed that there was a large statistical significance in the manufacturing sector when manufacturing and non-manufacturing sectors were separated. Summarizing the results, it is necessary to seek policy support such as deregulation to inspire companies’ lost investment motivation and the creation of an economic environment for investment expansion.

Optimization of the Structure of the Investment Portfolio of High-Tech Companies Based on the Minimax Criterion

A model has been developed for the optimization of the share structure of an investment portfolio in high-tech projects supported by the leaders of the leading industry companies in Russia. Several indicators (financial leverage, integrated rating of companies, industry rating) were applied in the decision support system for the shared distribution of investments. High-tech production is based on innovative technologies for saving resources, the resiliency of systems for transporting and transferring raw materials and finished products within Russia, so the main income will remain within the country. It is possible to export high-tech products, rather than raw materials, which will increase export revenues. Investors will invest in high-tech projects of Russian companies, taking into account the targeting of investment development. The guarantee is the stable financial position of the companies and the competitiveness rating. Methods: The authors propose a new approach that does not contradict modern rating scales, based on a hierarchical rating procedure and fuzzy logical rules that allow you to build an integral rating in the form of portfolio shares from the whole. A higher share shows an indicator of the higher investment attractiveness of companies. The industry rating is obtained based on the principle of the company’s first affiliation to the highest rating indicator. The final minimax portfolio is based on the initial ratings in a circular convolution and is then adjusted by industry. A software package has been compiled that allows the testing of the method of capital allocation between investment projects for the largest companies’ leaders of high-tech industries in Russia. This software uses the author’s method of multi-stage analysis, the evaluation of financial coefficients, the integral ranking and the correction of the solution taking into account the industry attributes. Results: The results are presented with computer-aided design (CAD) in the form of an algorithmized decision support system (DSS). The CAD system is based on a hierarchical algorithm, based on the use of a multi-level redistribution of investment shares of high-tech companies, taking into account the adaptation to the requirements of the return on investment portfolio. When compiling the portfolio, the minimax optimality criterion is applied, which allows the stabilization of the risk by purposefully redistributing funds between the companies involved in the analysis. The authors of the article have compiled an algorithm for the software implementation of the model. Features of the rating approach: the use of the author’s mathematical apparatus, which includes a hierarchical analysis of the ranked indicators of the financial and economic activity of companies, taking into account their priority, and the use of a minimax approach to obtain a rating assessment of companies, taking into account the industry attributes. Development: The proposed approach should be used for targeted financing of large industry companies engaged in the implementation of high-tech projects.

Impact of Cultural Indicators on the Economic Performance of International Companies

Nowadays, international companies are looking for new ways to improve their performance. Most studies on this issue do not consider the social environment and established corporate culture that have a direct impact on economic indicators. Based on econometric data, this research confirms the impact of cultural indicators on the economic activities of international companies in Russia, Germany and Japan, representing national, European and Asian cultures. The quantitative Denison’s method allowed us to examine the corporate culture and assign numerical values to its characteristics. The impact of cultural indicators (engagement, consistency, adaptability, mission) was assessed by means of correlation and regression analysis. According to the data obtained, even though employee engagement is shown to be the most important indicator in general, the performance and economic indicators of various enterprises are affected differently. For Russian companies, the most significant cultural indicators determining the overall performance are adaptability and engagement, as the mission indicator has the least impact. The factors of mission and engagement are of utmost importance for German organisations, while consistency and adaptability are less relevant. The economic performance in Japanese companies is strongly influenced by their mission and consistency, and the indicators of engagement and adaptability are secondary. However, the conducted research does not cover the whole variety of interactions between international companies. Future interdisciplinary studies should examine how cultural indicators influence the economic activity of companies of countries in different world regions. In the context of globalisation and localisation processes, international companies need to adapt their activities, taking into account the local cultural values.

Cluster analysis of the economic activity of Slovak companies regarding potential indicators of earnings management

Research background:All over the world, any information about the earnings manipulation is very important for all the stakeholders of the companies. Therefore, it is necessary to detect this situation in a certain way. The global practice has shown that it is appropriate to create detection models and it would be very useful to specify individual sectors or the groups of sectors of economic activities of companies.Purpose of the article:The article aims to the financial ratios of Slovak companies that are globally used in the detection of earnings management. Based on hierarchical cluster analysis we identify groups of economic activities (according to the international NACE classification) with similar financial characteristics.Methods:For efficient earnings manipulation detection, high-quality and up-to-date financial data is required. We used financial data of real Slovak companies from the year 2018 obtained from international database Amadeus. After a precise pre-preparation of the dataset, we use the standard clustering procedures. Using the analysis of the dendrogram, the groups of the companies with their economic activities are identified.Findings & Value added:The results of the analysis show that there exist logical groups of NACE categories of economic activity of companies with similar characteristics. Regarding potential earnings manipulation, companies in these groups are as similar as possible. Therefore, financial characteristics can be analyzed together, and more accurate detection models could be created for them.

Challenges of an innovative economy in the context of the growing competitiveness of the information services sector

In the century of the global information society and innovation economy, the introduction of modern computer and telecommunication technologies in almost all spheres of human life and activities, has led to the formation of a single space using information services. In the context of information development in an innovative economy, information is becoming an increasingly important and integral part of every competitive company. In innovation economics, this component is becoming the subject of the rapid development of communications, telecommunications, computer and information technologies. By increasing information and intellectual abilities in various market spheres of economic activity of companies, an innovative economy increases its competitive advantages and, consequently, its competitive potential, since its elementary composition receives multilateral economic, personnel, organizational and information support. Information services are considered one of the most promising areas of an innovative economy and their further development is based not only on the timely creation, but also on the implementation of innovations.

Assessment of the role and significance of the cost formation process in the activities of organizations

The article presents a comparative analysis of various approaches to the formation of production costs. The study estimates the role of costs in the production and economic activities of companies in a market environment. At the same time, the assessment considered the impact of the problem of limited resources on the activities of production systems, which is possible to solve only with the active use of alternative ways in organizing the functioning of the cost-effective mechanism of enterprises.

ЦИФРОВІ ТЕХНОЛОГІЇ В УМОВАХ ФОРМУВАННЯ ЦИФРОВОЇ ЕКОНОМІКИ

The article substantiates that the successful development of the digital economy is closely linked to progress in several “frontier technologies”, among which the most important are such software-oriented technologies as Blockchain, the Internet of Things (IoT), Big Data Analytics, Artificial Intelligence (AI), Cloud Computing, Artificial Intelligence (AI). It is determined that together these technologies provide new opportunities for better analysis, processing and use of digital information, which gives new opportunities for companies to improve their efficiency by offering new, more personalized products and services. In general, the article analyzes the leading technologies used in the formation of the digital economy, identifies their essence, types, and methods of practical application. The properties, potential advantages, and risks of blockchain technology are studied. The article gives examples of companies that use blockchain. They represent such areas as finance, data management, energy, government, transport, health. The main components of the Internet of Things are identified. These include means of identification, means of measurement, means of data transmission, means of data processing, performing devices. The hierarchy of the Internet of Things is also given. It consists of personal wearable devices, smart homes, and smart industry (industrial internet). The phases of the “industrial Internet” development are presented. The essence and constituent characteristics of Big Data are determined. Among them: volume, velocity, variety, value, veracity, variability, visualization. It is determined that the key sources of Big Data are information from the Internet; readings of various devices; corporate information. The competitive advantages of companies that use Big Data are given. Also, the advantages and models of using cloud technologies are described. The essence and components of artificial intelligence are determined. An example of its application in the economic activity of companies is presented.

Analysis of Profitability of Business Segments

Profitability analysis of business segments in Russian and foreign practice is an instrument of operational activity and strategic development for any company. Such analysis allows making effective managerial decisions based on its results. The subject of our scientific research was the segmentation of business and its processes to develop the main methodological aspects in the field of financial and economic activities of companies in various areas of activity. The purpose of the analysis of the profitability of business segments of economic entities in current severe operating conditions is predetermined by the timely and operational identification of ‘sick’ places of financial and economic activity. The objectives of this study are due to the importance of developing a methodological and methodological approach to identify positive and negative results of financial and economic activities through operational and geographical segmentation of the company’s business processes.

ОЦІНКА РЕНТАБЕЛЬНОСТІ ДІЯЛЬНОСТІ СТРАХОВИХ КОМПАНІЙ

In the context of an active process of European integration, it is important for the country to improve the financial capabilities of the insurer. Accordingly, the substantiation of profitability indicators of insurance companies was identified as the main method of assessing the effectiveness of activities. Therefore, the aim of the article is to generalize the importance of profitability as a determining indicator of assessing the financial results of management of insurance companies. The study was conducted using the following general and special methods: systematic, comprehensive approach – generalization of the need to assess the profitability of the insurance company; coefficient method – for comparison and interpretation of actual data on the assessment of the profitability of the insurance company; tabular-graphic method – for visual display of dynamics and structure of separate indicators. The object of the study was selected TOP-5 insurance companies in the domestic market. Approbation of the assessment of profitability indicators on the basis of empirical data revealed the degree of influence of the most important factors on the financial and economic activities of companies. It is proved that the profitability indicators of insurance companies make it possible to comprehensively assess not only the financial results of the insurance company, but also to characterize one of the aspects of the financial condition of the insurer. The rating of insurance companies on profitability indicators was developed in order to make objective decisions about the efficiency of companies in the insurance market. The study revealed the reasons for the negative results of some insurance companies, which indicates the need to improve certain aspects of their activities. Therefore, it was expedient to develop and propose a list of measures to improve the efficiency of insurers, namely the improvement of the management system. Based on the study, it was determined that profitability is one of the main indicators for assessing and monitoring the functioning of the insurance company. Relevant results will allow in the future to assess the cost and identify possible options for the development of the insurer.

Climate change and knowledge spillovers for cleaner production: New insights

This paper explored the extent to which the climate change could affect economic performance for large enterprises in the world through the process of knowledge diffusion in the energy sector. There is a theoretical dichotomy between studies to understand if and how economies react to climate change both at macro and micro level. The economic analysis of climate change effects is important to demonstrate that production is associated to world climate and to implement an opportune framework for modelling the economic damages. In this way, new sustainable strategies for increasing efficiency in the use of energy can be suggested by policy makers. Because of environmental externalities produced by the economic activities of companies, the analysis of technological diffusion processes play a crucial role in analysing the economic impact of the climate change. In this perspective, this paper intends to fill two gaps in the literature: firstly, it sheds more light on the sensitivity of the economic performance of companies to climate change; secondly, it analyses the role of knowledge spillovers in a relevant field of cleaner production, which is that of energy. Indeed, the empirical evidence concerning the climate change effects in energy technology through knowledge spillovers is yet poor. The econometric analysis considered a sector-based panel dataset for the USA, Japan and the following European countries: France, Belgium, Germany, Sweden, Italy, the Netherlands, the United Kingdom, Finland and Denmark, over the time span 2002–2014. The results showed a significant impact of climate change on firms’ productivity and the spillovers play an important role in this process. The findings should have relevant policy implications for each country government in case of development of industrial strategy instruments in cleaner production technology.