Financial Economic Indicators Research Articles

Comparison between the impact of the brazilian real estate crisis and the critical period of Covid 19 on the financial economic indicators of companies

Until 2013, the real estate sector experienced an excellent moment due to favorable economic conditions and the high housing deficit in the country, and it can be said that the real estate market went through a period of “euphoria”. But as of 2014, this growth in the sector was interrupted by a strong crisis due to the oversupply of real estate units, and the lack of bank credit from customers for the acquisition of real estate. This period of decline lasted, on average, until 2018, when companies in the sector resumed growth, but shortly thereafter, in early 2020, the Covid19 pandemic brought new challenges for companies, providing negative as well as positive impacts. This work aimed to study the economic and financial indicators of some important developers (Cyrela, Even, EZTEC, MRV and Direcional) in the national market, listed in the IMOB sectorial index of the Stock Exchange, to measure the evolution of these indicators during the period of 2013 to 2021, a period in which the construction sector experienced two crises of global proportions. As shown in the results, the main financial economic indicators (liquidity, indebtedness, profitability, and turnover or activity) had a behavior with only negative impacts in the 2014 real estate crisis. but in the Covid crisis these impacts were predominantly positive

System of monitoring social and economic interaction of business entities in conditions of global challenges

Methods. In the course of the study, methods of comparison, analysis and synthesis, statistical, analytical, coefficient, factor, main component were used. Results. Entrepreneurial activity takes place in interaction with various subjects of the national economy of the country, as a result of which a complete system is formed, which covers economic, environmental, and social components. Therefore, it is necessary to find a balance between the economic development of the enterprise and the minimization of negative environmental consequences that arise during economic activity. Global challenges have been identified and the interrelationship of their consequences has been established. The rating of the largest polluting enterprises and the ecological, social and economic development of PJSC “PIVNGZK” were analyzed, and a system for monitoring the interaction of business entities in the conditions of global challenges and socio-behavioral restrictions was built. It is proposed to improve the system of indicators for monitoring the interaction of business entities with the internal, external and environmental environment. The calculation of the monitoring indicators of the interaction of business entities was carried out on the example of PJSC “PIVNGZK”. In order to reduce the dimensionality, at the same time losing the least amount of information, the method of principal components was used. The monitoring of the company’s interaction with the internal environment showed employee satisfaction with working conditions, a dynamic increase in average pay, and a significant decrease in staff turnover. Regarding interaction with the external environment, there is a decrease in the coefficient of customer constancy and the growth rate of the number of consumers, which are negative factors and signal the need to implement measures to improve the efficiency of interaction with external stakeholders. Monitoring of the enterprise’s interaction with the environment showed that waste far exceeds the volume of produced products. In this regard, measures are proposed to improve the efficiency of the interaction of economic entities with internal, external and surrounding environments. Novelty. The system of indicators for monitoring the interaction of business entities with the internal, external and surrounding environments in the conditions of global challenges and sociobehavioral restrictions has been improved. Practical value. The practical significance of the research lies in the possibility of practical monitoring of the business entities interaction, which will make possible to assess the quality of the functioning of the environmental management system, the level of performance of the enterprise’s greening tasks, monitor the costs of environmental protection, analyze the relationship between ecological characteristics and financial economic indicators of the activity of the industrial enterprise and, as a result, to minimize the eco-destructive impact of the enterprise on the state of the environment and improve the socio-demographic indicators of the country.

A VAR-based factor decomposition to the term structure of treasury bonds

This paper analyses the dimensions of the term structure and explains their associations with macroeconomic parameters that foretell financial crises. Five prominent financial economic indicators were found, collectively explaining the dynamics of bond yields. Data from China's bond market from 2007 to 2019 were used to calibrate our model and hypothesis. The VAR model was adopted to explore in what direction and to what extent the early warning indicators of financial crises may effect changes in the term structure. Given its high complexity and the irregularity of its occurrence in different economies, it is usually a challenging task to quantitatively model financial crises. This challenge has been handled by an indirect approach introduced in the current study, linking the original limited sample size problem to a VAR-based model with abundant time series data. The findings provide an implementable scheme that may be used to design an early warning system of financial crises.

Макроекономічний аналіз ефективності регулювання економіки України: ретроспектива та сучасний фінансово-економічний стан

With the beginning of Russia’s large-scale war against Ukraine on February 24, 2022, Ukraine’s economy suffered shock influences, which on the part of the main public administration bodies caused an urgent need to respond promptly to the sharp changes and dynamics of events that have since unfolded. In addition, it was necessary to understand why and for what reasons the financial-economic system of Ukraine reacted in the way it behaved. Thus, the presented study is aimed at defining and assessing the effectiveness of the implementation of the previous systemic policy along with analyzing the operational actions of the National Bank of Ukraine as the main financial-economic regulator in the conditions of belligerency with regard to the country’s economy. Such an analysis provides an opportunity to further adjust the tactics of managing the financial-economic processes, taking into account the identified shortcomings in the implementation of decisions of previous periods. The research uses a comprehensive approach to macroeconomic analysis, methods of structural analysis and analysis of the dynamics of financial-economic indicators in retrospection. The research is built in two stages. At the first stage, with the help of retrospective financial-economic analysis methods, an assessment of the efficiency of the implementation of the defined Strategy for the development of financial markets in Ukraine for the period from 2016 to 2021 was carried out. At the second stage of the research, the actions of the Central bank were recorded, which led to the stabilization of the macroeconomic crisis in the country, the main directions of operational regulation during martial law in Ukraine were determined, their efficiency was assessed. A retrospective analysis of the actions of the National Bank of Ukraine in 2016-2022 showed that during this period the following important results were achieved in ensuring both financial and price stability, also the stability of the monetary unit: the monetary regime was used quite successfully in conducting inflation targeting, the standards of commercial banks were increased, a program for the accumulation of international reserves was carried out, and the exchange rate was regulated in order to ensure its growing. The assessment of the actions of the National Bank of Ukraine during the period of martial law after February 24, 2022 showed that the following measures of operational regulation were carried out: a number of external and internal incoming and outgoing financial barriers were applied, the accounting rate was regulated, special measures were constantly taken to ensure the financial-economic reserves of the financial system of Ukraine, new mechanisms of financial levers for the credit situation were developed. Further on, it would be advisable to consider the efficiency of regulating the financial-economic situation in a more distant period in order to be able to assess the correctness and fallacy of the decisions taken and adjust the regulator’s actions to maintain a stable state of the economy and further gradually exit from the crisis status. This analysis allows society to apprehend the complexity, consistency of actions of the central economic regulatory bodies, to understand the consequences and expediency of such actions. The presented research is original and comprehensive, touching on all macroeconomic aspects of the activities of the main financial regulator of Ukraine, its influence on the financial-economic situation of the country.

The effect of mandatory adoption of IFRS on the magnitude of accruals

PropósitoEste trabajo investiga si la mayor flexibilidad de las Normas Internacionales de Información Financiera (NIIF) respecto a los modelos contables que se empleaban antes de que dichas normas fueran obligatorias supuso un cambio significativo de la magnitud de los ajustes por devengo reconocidos en el resultado contable.Diseño/metodología/enfoqueSe analizan 18.126 observaciones de 1.881 empresas no financieras de 19 países europeos en 2000–2012. Se utiliza la metodología de regresión del tipo diferencia en diferencias. La muestra de tratamiento incluye empresas que adoptaron obligatoriamente las NIIF, lo que tuvo lugar en el ejercicio contable 2005, y la muestra de control está compuesta por empresas que las adoptaron voluntariamente antes de 2005.HallazgosCon respecto a las normas contables previas, la adopción obligatoria de las NIIF incrementó el valor absoluto de los ajustes por devengo. Este resultado se observa solamente en el grupo de empresas donde la magnitud de los devengos es negativa. El efecto observado es independiente del grado de similitud entre las NIIF y las normas previas.Originalidad/valorEste trabajo complementa la literatura que analiza el efecto de las NIIF sobre los estados financieros y los indicadores económico-financieros de las empresas, analizando el componente del resultado contable más sensible al uso del juicio profesional: los devengos. El hecho de centrarse en los devengos observados permite evitar el error de medición en el que se incurre cuando se trabaja con el componente discrecional de los mismos. Adicionalmente, se analiza un horizonte temporal más amplio que en trabajos previos.

Macro-and microfinance indicators as the “markers” of borderline dangerous economic states of the territory

Leaning on the analysis of the provisions of economic science, which article assesses interrelation between the links of financial system of the country on the one hand, and the impact of the level of financial soundness of businesses and households upon financial security of public law entities on the other; as well as dependence of satisfaction of needs of the individual in public goods on the fullness of centralized monetary funds. Such dependence requires peculiar approach towards determination of financial self-sufficiency of micro-and macroeconomic agents; however, the majority of elaborations focus solely on the public finance, which become the reason for emergence of borderline state of regional economy upon the criterion of its protection from threats – conditionally secure or pseudo secure. In this regard, the goal of this article lies in development of the system of financial-economic indicators and their threshold values; its implementation is aimed at identification of negative trend – indicators of destructive processes in the national economy. The following methods were applied in the course of this research: general scientific – analysis, synthesis, induction, deduction for revealing the peculiarities of ensuring economic security of public law entities in the financial sector; specific scientific – statistical analysis for assessing financial-economic parameters of development of the territory; methods of qualitative assessment of the systems for differentiating the regions upon the criterion of security from financial threats. Considering mutual impact of public and private finance, the author develops the system of financial-economic indicators, the positive dynamics of which testifies to consolidation of financial self-sufficiency of economy of the territory; while negative dynamics in the medium and long-term period testifies to destabilization of certain vital processes of macro - and micro-subjects. Its peculiarity consists in combination of basic and additional coefficients that reflect financial situation of economic agents of various level and determination of their “thresholds”. Implementation of the author's approach in assessment of functionality of financial system of the country is aimed at identification of occurrence causes of borderline dangerous economic states of the territories.

Strategic management of the competitiveness of industrial companies in an unstable economy

This paper is devoted to developing a set of strategic areas within the system of managing an industrial company in an unstable market economy. The authors have explored the genesis of the theory of competitiveness to identify some of the key attributes of industrial companies’ competitiveness in the short and long run. It has been established that both in the short and long run of major significance are financial-economic indicators. The authors have assessed the degree of financial leverage as a summarizing indicator among a set of financial-economic indicators of competitiveness in sectors within Russia’s industry within the period 2015–2017, which, overall, has a negative value. Among the key reasons behind Russia’s current trends are high levels of financial dependence among companies, low returns on assets, and high interest rates on loans. The authors have identified and analyzed three major strategic areas in the management of industrial companies in an unstable economy, which are as follows: (1) development of a corporate strategy for fostering and boosting companies’ competitiveness on an innovation basis; (2) implementation of strategic marketing; (3) implementation of strategic controlling. The paper brings forward a set of priority strategies for competitive industrial companies (horizontal diversification, innovation, or integrated growth), proposes a set of tools of strategic marketing for stimulating technological processes within the industrial complex in an unstable economy, and identifies a set of areas for implemo32enting strategic controlling as a way to practically implement deviation management. The authors accentuate the need to implement a scenaric approach to managing an industrial company. The paper brings forward a technique for assessing the effectiveness of a corporate strategy based on gaps between an industrial company’s strategic plan and its real potential.

ДОСЛІДЖЕННЯ ОСОБЛИВОСТЕЙ СТРАТЕГІЇ ДОСЯГНЕННЯ ЕКОНОМІЧНОЇ СТІЙКОСТІ ТА ЕФЕКТИВНОСТІ НА СУЧАСНОМУ ЕТАПІ РОЗВИТКУ ПІДПРИЄМСТВА

In the article discovered strategy of economic stability and efficiency of enterprises activity based on achievement financial-economic indicators taking into account economic condition of the state and World on the today. Because by achievement financial-economic indicators is the implementation of both strategy on enterprises in general to as and economic stability and effectiveness in particular. It is clear that the strategy of the enterprise in general is appointed to plan its future activities, while the strategy of economic stability must take into account the conditions of economic development today. Because exactly process of creation strategy on the each enterprises to needs improvement with aim climb effectiveness him realization. The indicator of economic efficiency is a complex concept, what means commons indicator for evaluation of exploitation characteristics of technological equipment in general and determine level progressive her in particular. Calculations to determine economic effectiveness of new technological equipment is an integral part of implementation of a set of measures to update and improve the production process on the enterprise – along with the actual operation of existing technical support. Achieving of economic efficiency of new technological equipment is a key task of creation and improvement strategy of economic stability on the enterprise. The main indicator a determine economic efficiency of new technological equipment is a indicator of decrease cost price goods during input production process along with technical priority and economy resources which has a generalizing meaning. Because new technological equipment is usually characterized by a high level productivity during its exploitation, and also the degree of load – compared to low costs of material resources, energy and size in terms of location. And for this each strategy on the enterprise will exist all spheres operation cycle of enterprise taking into account condition of external environment. Thus, the strategy of economic stability and efficiency is focused on the latest business conditions.

The impact of the Brazilian financial crisis on the food industry

This paper attempts to identify the impact of the 2015 economic crisis on the economic and financial scenario of the Brazilian food industry between 2012-2016. For this, a descriptive study with a quantitative approach was carried out in 15 food industry companies listed on BM&FBovespa. The analysis was based on the financial economic indicators of liquidity, profitability, indebtedness and economic activity. The data for the study were collected from the database of the BMF&Bovespa website considering the years from 2012 to 2016, also data tabulation and charting were done in Microsoft Office Excel 2010, using the average of the indicators for each year. Interestingly, the results showed a crisis in the sector and it can be measured its effects on the billing, total assets, net profits of the companies beyond their ability to honor their debts, among others. It was verified that the worst moment of the crisis of the sector was in 2015 and that the Brazilian food industry is already recovering from 2016. Thus, it can be inferred that the economic-financial indicators of the Brazilian food industry presented significant variations in the period of the Brazilian economic crisis of 2015.

Acidente ambiental em Mariana-MG

Em novembro de 2015, ocorreu o maior acidente ambiental da história do Brasil. A empresa Samarco S.A é a principal responsável pelo desastre, sendo controlada pelas empresas Vale S.A e BHP Billinton LTDA. Após o desastre, as empresas responsáveis foram obrigadas a arcar com os danos causados a cidade de Mariana – MG e as vítimas. Nesse contexto, esta pesquisa objetivou analisar os impactos econômicos e financeiros nas empresas responsáveis pelo desastre ambiental. Para atingir o objetivo, analisou-se os indicadores econômicos financeiros utilizando-se regressão linear simples. A pesquisa teve como amostra os demonstrativos contábeis das empresas Samarco S.A, BHP Billinton LTDA e Vale S.A. Os resultados indicam que os principais impactos foram o endividamento de curto prazo que ficou em média 30,71%, e em 2016 foi de 46,1%. Os indicadores de estrutura de capital ficavam abaixo de 70% nos anos anteriores ao acidente e após alavancaram-se para 82,5% (2016). Os índices de liquidez se mantiveram em queda constante durante o período analisado iniciando em 0,59 (2010) e terminando em 0,32 (2016) sendo também impactados pelo acidente ambiental. Em relação à análise econométrica, os indicadores mais consideráveis foram os de estrutura de capital. O maior impacto financeiro foi ocasionado pelas provisões no valor de R$ 9.833.189 (Bilhões), para cobrir indenizações das vítimas do acidente. Além disso, o valor das ações tende a reduzir conforme o aumento do Nível de Endividamento e da Imobilização do Patrimônio Líquido.
 Palavras-chave: Sustentabilidade Financeira. Indicadores Econômico-financeiros. Acidente Ambiental. Contabilidade.

Monetarizing the social value: theory and evidence

Over the last decade important efforts were made to integrate economic and social value in organizations within a unic report. This is significant because it reflects greater interest and demands in society concerning not just economic but social responsibilities of organizations.However, social organizations are finding problems to give value to their social contribution, mainly due to the prominence of financial economic indicators; which curiously only have instrumental value in this type of entities.The aim of this paper is to develop a social accounting model that allows incorporating the social value, in its monetized form, employing accounting standards; with the economic one. It is not possible to monetize full social value with this model, although it does show economic value with social impact, socio-economic return and specific social value.Application of this model makes possible the quantitative and monetized comparison of integrated value between companies, which would involve more efficient decision-making based on symmetry and more complete information (private organizations), more efficiency in consumption or investment decisions (private individuals) and efficient indicators for establishing public policies (public administration). Overall, it could prove to be a basic and valuable component of business reputation.

SUSTAINABLE DEVELOPMENT OF THE AGRO-INDUSTRIAL COMPLEX AND RURAL TERRITORIES OF THE REGIONS

The aim of the study is to monitor the social, performance and financial-economic indicators of each rural area of the region on the basis of an analysis of the "problem map" and the "development reserve diagram", as well as to develop long-term programs for social and economic development. Methods. A package of methodological materials was developed to ensure systematic and comprehensive monitoring of the current state of the rural areas in the region and their reserves of socio-economic development. Results. The authors propose a new methodology for monitoring the sustainable development of the agro-industrial complex and rural areas on the basis of an integrated approach aimed to assess the socio-demographic situation, indicators of agricultural performance, financial and economic parameters and municipal management, which distinguishes it from the well-known methods of analyzing statistical data, municipal reports and economic subjects, expert evaluation of indicators and qualimetric method. The complex nature of monitoring, the objectivity of assessments of social as well as the performance and financial-economic indicators allow us to figure out the rating of each rural area of the region, which should be taken into account when providing government support and subsidizing agriculture and supporting the rural areas. Conclusion. We suggest, developed by us, a scheme of the guaranteed strategic development of rural areas which can be implemented in any region of Russia subject to the creation of maps of land zoning, development of regional and municipal schemes for the rational allocations, production and processing of agricultural products, development of a package of regulatory and legal documents, practical tools and recommendations, regulatory and legal framework for improving leases, development of a methodology to monitor the current state of the rural areas and their reserves of socio-economic the development.

Building unconditional forecast model of Stock Market Indexes using combined leading indicators and principal components: application to Vietnamese Stock Market

Objectives: The goal of this paper is to propose a new approach to build unconditional forecast models of stock market indexes in the context of high dimensional input data set. Methods: The methodology of building these models is to combine the method of leading indicators and the Principal Component Analysis techinique (PCA) for dimensionality reduction and to use the multiple regression method on the new data set of reduced dimension. The real data set collected by month of 293 economic-financial variables were used to build a forecast model of Vietnamese stock market index VNINDEX. Findings: The absolute error percentage of the out-of-sample forecasts for the next 4 periods of the model built under the proposed methodology is no more than 1.6%. Applications: The methodology proposed can also be applied to build the unconditional forecast models for the stock prices as well as many other financial-economic indicators. Keywords: Dimensionality Reduction, High Dimension Data, Leading Indicator, PCA, Unconditional Forecast Model, Stock Market

Decomposition of financial-economic indicators during probability evaluation of bankruptcy risk (for sea trade ports of Ukraine)

The assessment of integrated sea trade ports bankruptcy risk was done with the software «Analysis of financial risks and overall risk of bankruptcy». The program calculates financial ratios and visualizes the results using range-score method in the consolidated analysis of financial condition and consolidated analysis of indicators of bankruptcy, namely: financial stability, solvency, business activity, performance evaluation of the balance sheet structure, profitability and bankruptcy probability results for the years 2012-2014.The trends of sea trade ports of Ukraine development in 2012-2014 were analyzed, particularly the calculations for indicators: assets, liabilities, sales revenue, profit from operating and financing activities, the net profit were presented. The calculations showed that for the period analyzed, there was deterioration and development of ports in 2013 while to get the positive development it became possible in 2014.The worst results in terms of probability of bankruptcy were received according to the Conan and Holder models. Only three of the ten ports showed low bankruptcy for bankruptcy probability in 2014. The differentiation in the probability evaluation results was found. In terms of Lis and Springate models significant evaluation part is the increase of capitalization, whereas according to the model of Conan Holder the importance of creating added value in the company is vital.

Financial-Economic Indicators – Vectors of Budgetary Performance. Case Study Romania

Abstract The actions taken in order to make public administration more efficient within the last few years have been concentrated on optimizing the internal processes within public institutions. In doing so, an emphasis was placed upon the method in which public financial resources are utilized. The accumulated experience in theory as well as in practice has shown however, that optimizing the processes of planning financial resources is just as important. As a result, the emphasis can be placed on the efficiency of budgetary processes. To evaluate the budgetary performance a series of financial-economic indicators can be used in order to quantify the method in which financial resources are used, as well as producing a plan for their application. The use of statistical analysis and the evaluation of official data which is offered by public institutions, on the basis of which financial-economic indicators are calculated manages to distinguish this paper from others. The conclusions of this study focuses on the expressivity and usefulness of these indicators.

Media rhetoric plays the market

This article examines the logic and power of financial news metaphors in the current economic climate. The sequence of global financial crises starting in late 2007 led to a particular discursive phenomenon in financial news. Newspapers constructed, with vivid imagery (e.g.,toxic loans,nervous markets to be calmed down), a globalized register for talking and writing about the crises. The empirical study of 3,730 Dutch and Flemish-Belgian financial news articles (2,042,596 words) investigates how during 2006–2013 metaphor power (De Landtsheer, 2009) interacts with financial-economic indicators. It is suggested, on the basis of the case study, that financial news articles generally may be more metaphorical during crises; metaphor power significantly correlates with Eurostat financial-economic indicators in either a positive direction (unemployment rates, public debt) or a negative one (gross national product, consumer confidence).

Relação entre o ranking econômico financeiro e de mercado de empresas da BM&F Bovespa

Com o intuito de verificar a relação entre o ranking econômico financeiro de Mercado de Capitais das empresas de Tecnologia da Informação e Telecomunicações, foi realizada uma pesquisa descritiva, documental e quantitativa, analisando uma amostra de 13 companhias dos setores de Tecnologia da Informação e Telecomunicações nos anos de 2008 a 2012, observando quatro indicadores econômicos financeiros e quatro indicadores do mercado de capitais. Pode-se verificar que todos os anos analisados apresentaram coeficiente de correlação positivo, ou seja, quanto melhor o posicionamento da empesa em um ranking, melhor posicionada a mesma tende a estar no outro ranking analisado, assim pode-se concluir que há relação significante positiva entre o desempenho econômico financeiro e desempenho de mercado de capitais.

Economic Performance: Variability of Businesses within Each Industry and Among Industries

This article deals with the structure of economy as a factor affecting an intensity of economic growth. Shifts in sectoral contributions to gross value added cause two distinctive trends in the development of labour productivity: firstly, by increasing the contribution of the secondary sector to gross value added, which causes the increase of the labour productivity of the whole national economy, and by increasing the contribution of the tertiary sector to gross value added, which causes decline in labour productivity across the whole national economy. Generally, it is considered that economic characteristics of each determine through their consistency economic characteristics of “their” enterprises. The research question is whether for the determination of economic performance and financial health of a company its individual result is more important, or whether these issues are predetermined by its classification. The aim is to show the example of the Czech economy, both the development of selected economic characteristics of each in the context of the changing sectoral structure of the national economy, and the differences in results of the assessment of financial-economic indicators among six selected industries and selected sample of 72 companies within these industries. On the basis of available statistical data, there are assessed trends in labour productivity, capital endowment of labour and selected indicators of financial analysis of group the industry and the market services in the Czech Republic, which show the main differences between both segments of the economy. But the focus of the article is on the research aimed at the degree of result differences in assessment of economic performance and financial health within each and among industries. Using the data of financial statements of assessed companies, there were calculated both ratio indicators and synthetic indicators of financial analysis and their results were compared for each company within each industry, within companies of the whole sample and of the average. There was assessed variability of indicators within each and among industries. Attention was concentrated on 5 ratio indicators of financial analysis (current liquidity, return on costs, costs to revenues ratio, capital turnover and financial leverage) and 2 synthetic indicators – the Altman's model of 2002 and the Czech Grundwald's model of 2001. The analysis certified that ratio indicators of financial analysis of companies within industries show slightly higher variability than ratio indicators among industries, but the assessment of indicators of variability shows their slightly higher values. For the synthetic indicators of financial analysis this issue cannot be concluded clearly because there is the crucial way of construction of these models. Based on the performed research, there were formulated two other conclusions, both for financial analysis of enterprises, and for guiding regional growth area. http://dx.doi.org/10.5755/j01.ee.22.5.964