Financial Management Decisions Research Articles

The Competitiveness of Financial Support Measures in the Context of the Pandemic

Abstract This article starts from the empirical study of economic and social policies at the European level and has as its main purpose the determination of some solutions to simplify and implement them in favor of the data analysis was essential to see the progress in accessing these measures during the pandemic period to provide conclusions regarding the level of contribution of these aids and how they were or were not distributed depending on the situation in the territory. The present research did not discuss overall evaluation/impact, as the period of implementation and reporting of these types of aid was concurrent. We can consider that the measures for granting financial support from non-reimbursable external funds, related to the Competitiveness Operational Program 2014–2020, in the context of the crisis caused by COVID-19, although effective from the perspective of the expenses incurred, were not effective in covering the demand, especially in the regions considered more developed. Our findings are useful for policymakers such as managers and investors and can help them make the best decision for their managing or investing activities. Moreover, governments need to know how companies respond to the pandemic to identify the sectors of activity that are more vulnerable to the crisis’ effects and the main financial management decisions that must be adopted by companies during times of crises.

Research on Optimization of Financial Performance Evaluation of Energy Enterprises under the Background of Low-Carbon Economy

The development of human society and the production and operation activities of enterprises have brought about global warming, resulting in frequent natural disasters. It has become the consensus of all countries in the world to develop a green and low-carbon economy. Under this background, enterprises, as the main body of economic activities, especially energy industry enterprises, should optimize and upgrade the traditional production and operation mode with high pollution, high consumption, and low output to a high-efficiency and low-pollution mode, and pay attention to the co-ordinated development of economic benefits, social benefits, and ecological benefits. Financial performance evaluation indicators have become the main basis for senior leaders of energy industry enterprises to make decisions and evaluate the low-carbon economic benefits of enterprises. This paper constructs a set of financial evaluation index systems of energy industry enterprises under the background of a low-carbon economy from four dimensions: profitability, asset quality, debt risk, and business growth. The analytic hierarchy process (AHP) is used to measure the comprehensive contribution of financial indicators of low-carbon production and operation. The purpose of this study is to provide scientific financial management decisions for energy enterprises to reduce costs and increase the efficiency and low-carbon operation under the background of a low-carbon economy. The research results show that the comprehensive evaluation index system after the traditional financial evaluation index of energy industry enterprises is integrated with the evaluation index of a low-carbon economy can help enterprises make more correct and effective financial decisions in the process of survival, development, and growth, and, at the same time, the financial evaluation index of a low-carbon economy should pay more attention to the indicators with a higher comprehensive contribution, so as to effectively promote the low-carbon operation efficiency of enterprise production, management, and sales. Compared with other research results, this paper innovatively constructs a financial management decision-making index system for measuring the low-carbon operation of energy enterprises in theory, which has important value in guiding energy enterprises to reduce costs and increase the efficiency and low-carbon operation in practice.

Impact of working capital management on profitability of private commercial banks in Ethiopia

Working capital management is an important financial management decision for the profitability of commercial banks. The purpose of this study is to examine the impact of working capital management on commercial banks' profitability. The study used secondary data from audited financial statements of five private commercial banks in Ethiopia covering the period from 2011 to 2020. The banks were selected on a convenience basis. The financial information from the banks was analyzed to determine the impact of the current ratio, bank size, a current asset-to-total asset ratio, loans and advances to total asset ratio, and current liabilities-to-total assets ratios on profitability. The researchers applied descriptive statistics and inferential statistics. The data were analyzed using the Stata data processing package. An econometric model is applied to examine the impact of working capital management on the profitability of commercial banks. A random effect model was employed and the result revealed that bank size and loans and advances to total assets were found to have a significant impact on banks' profitability. The current ratio, a current asset-to-total asset ratio, and current liabilities-to-total assets ratios were found insignificant to influence banks' profitability. Since the profitability of the banks depends on working capital management, rigorous attention should be given to those factors that influence the profitability of commercial banks.

Capital Structure, Dividend Policy and Firm Value of Listed Non-Financial Companies in Nigeria.

A balance is required for optimal capital structure and dividend policy becomes crucial, as an imbalance could result in increased debt burdens, higher interest payments, and reduced overall profitability. Additionally, such misalignment might erode investor confidence, causing fluctuations in stock prices and, in extreme cases, leading to a decline in market capitalization. Given the foregoing, this study examined the effect of capital structure and dividend policy and firm value of listed non-financial firms in Nigeria. To achieve these objectives, ex post research design was employed and the study utilized seventy (70) selected listed non-financial firms that had consistently published their audited annual financial reports from 2011 to 2022. The study analyzed the data using panel multiple regression technique with the help of statistical tools (E-view 10). The result of the study revealed that debt-to-equity ratio has negative and insignificant effect on firm value of listed non-financial firms. On the other hand, the study found that dividend per share has a significant effect on firm value. Thus, the study recommended that financial management decisions related to capital structure of non- financial companies should take into account the trade-off between potential benefits and risks associated with debt financing. Also, financial managers are advised to integrate thoughtful dividend management seamlessly into their broader corporate finance strategy. This proactive and adaptive approach ensures that companies remain competitive, responsive to changing circumstances, and capable of optimizing their overall value in the market.

APPROACHES TO EVALUATION OF FINANCIAL RESULTS OF RA COMMERCIAL BANKS

The study evaluates the interaction of macroeconomic variables, regulatory changes and internal operations of banks in the context of financial results formation. The research applies certain approaches to the evaluation of financial results to create an appropriate framework, that reflects the dynamics of financial results of the RA banking sector. A wide range of factors including macroeconomic indicators, regulatory changes, market competition and strategies of Armenian banks are assessed to build a complete picture of financial performance that will also enable financial managers to make strategic and financial management decisions.

Rational Choice with Status Quo Bias

Status quo bias refers to the psychological tendency of people to maintain existing decisions without making changes. This paper aims to explore the influence of status quo bias on regular financial management and consumption decisions based on existing literature and data and provides relevant suggestions to reduce the impact of Status quo bias. The study focuses on the influence of status quo bias on personal regular financial behavior and consumption choices and analyzes the causes of status quo bias and countermeasures. The result shows that status quo bias affects regular financial management and consumption decisions. People are more likely to stay where they are and ignore better options or opportunities. In regular financial management, they may be reluctant to change investment plans, and in consumption decisions, they prefer to consume now and ignore long-term planning. To cope with the negative impact of status quo bias, the author proposes some coping strategies, such as setting goals and providing information, setting up automated savings plans and using visual tools.

PENGARUH EARNING PERSHARE DAN DEBT TO EQUITY RATIO TERHADAP RETURN SAHAM DENGAN KEBIJAKAN DEVIDEN SEBAGAI VARIABEL INTERVENING PADA PERUSAHAAN YANG TERDAFTAR DALAM INDEKS LQ45 DI BURSA EFEK INDONESIA (BEI) TAHUN 2017-2021

Financial management is all activities related to financial management decisions and financial assets. The main objective of financial management is to obtain maximum profit through owned financial resources. The purpose of this study is to analyze and test the effect of the Effect of Earning Per Share and Debt To Equity Ratio on Stock Returns with Dividend Policy as Intervening Variables in Companies Listed in the Index LQ45 on the Indonesia Stock Exchange (IDX) 2017-2021. The target population in this study were companies listed on the LQ45 index on the Indonesia Stock Exchange (IDX) for 2017-2021, totaling 45 companies, which were then reduced based on the criteria to become 7 companies. Data analysis and hypothesis testing in this study used the Structural Equation Model - Partial Least Square (PLS-SEM).
 The results of the direct effect hypothesis test using the Smart PLS 3.0 application, show that Earning Pershare has a positive but not significant effect on Dividend Policy, Debt To Equity Ratio has a positive but not significant effect on Dividend Policy, Earning Pershare has a significant positive effect on Stock Returns, Debt To Equity Ratio has a positive but not significant effect on stock returns, dividend policy has a positive but not significant effect on stock returns. The results of the indirect effect hypothesis show that the Earning Pershare variable has a positive but not significant effect on Stock Return through Dividend Policy, Debt To Equity Ratio on Stock Return through Dividend Policy has a positive but not significant effect.

Financial Planning Strategy of "Container Villa Rental Company in the Mountains" in Indonesia

The development of the tourism industry in Indonesia has presented new business opportunities, including in the field of container villa rental in mountainous areas. This business promises attractive potential, but is also faced with various challenges related to proper financial planning. This research aims to analyze and understand the financial planning strategies adopted by container villa rental companies in Indonesia's mountainous regions. This research uses a qualitative approach with a case study method. The data in this study was collected through in-depth interviews with relevant parties in the container villa rental company, including financial management and other decision makers. In addition, data is also collected through document studies, namely financial reports, budgets, and company business plans. The collected data will be analyzed with a qualitative approach. The results show that financial planning for container villa rental companies in the mountains in Indonesia needs to be done systematically and structured. Financial planning in villa container rental companies in the mountains includes financial goals and objectives, financial planning elements, financial projections, investment feasibility analysis, and financial performance analysis.

Analysis of financial management practices in China's manufacturing sector before and during COVID-19: a comparison with Romania

PurposeThe objective of this study is to investigate how the coronavirus disease 2019 (COVID-19) pandemic affects firms' financial management in China's manufacturing sector. In addition, the authors analyze the changes in various financial indicators before and during the COVID-19 pandemic. Further, the authors make a cross-country comparison of the COVID-19's impact on financial management between China and Romania.Design/methodology/approachThe study uses the balanced panel data of 2,272 manufacturing listed companies from 2019 to 2020, and applies the t-test method and multiple regression method.FindingsThe results show that firms' financial performance in most manufacturing sub-sectors decreased during the observed period. In addition, the authors find that equity financing, proper liquidity management and an expanded firm scale can improve firms' financial performance. The authors further compare the results with the Romanian results, and find that the negative impact of debt-to-equity ratio on firms' financial performance in Romania is greater than that in China and the positive impact of financial autonomy ratio and working capital ratios is greater in China than that in Romania.Practical implicationsThe findings can help corporate managers make the best financial management decision in response to crisis.Originality/valueThis study is one of the pioneers that analyze how manufacturing companies carried out their financial management during the COVID-19 crisis in the Chinese context, and provides a cross-country analysis of corporate financial management practices in China and Romania.

Supply Chain Finance Redefined: A Supply Chain-Centric Viewpoint of Working Capital, Hedging, and Risk Management

Problem definition: The narrow definition of supply chain finance (SCF) as a financing scheme for accounts receivables fails to capture the knowledge creation of MSOM research scholars of the last 25 years who labored in the area under this label. A redefined definition of the research-and-application field, under the acronym integrated SCF (iSCF), better reflects the interplay of operational, financial, and risk management decisions our scholars and practitioners care about. The foundational knowledge of this field is ready to come into the classroom and elevate SCF courses from the typical “accounting and finance for supply chain managers” content to a supply-chain-centric viewpoint of important decisions in working capital management, effective cash-flow hedging, and integrated risk management of global supply chain risks. We outline the main research themes behind the iSCF research, and teaching, field; highlight concepts ready for the classroom; and pose some open research questions pointing to the future promise of the field. Methodology/results: Forum paper. MSOM Fellow opinion on topic of supply chain finance and risk management based on his published research. Managerial implications: A supply-chain-centric view on state-of-the-art practices for improved working capital, hedging, and risk management in global supply chains (integrated supply chain finance).

A Study on Risk Management of Commercial Banks’ Home Mortgage Loans Based on Risk Management Framework

Abstract In the wave of global urbanization, the rapid development of the real estate industry has greatly driven the growth of personal housing loans of commercial banks, and personal housing loans have become a very important part of the loan business of commercial banks, especially in the business operations of many smaller urban commercial banks, where personal housing loan business is an important source of profit. However, the personal housing loan business is facing increasing risk management challenges against the multiple backgrounds of the current epidemic environment, the overall tightening of mortgage policies, and the accelerated advancement of market-based interest rates. For most urban commercial banks, personal housing loan risk control should be based on the local market, combined with the actual development of the enterprise itself, comprehensive internal and external environmental conditions to establish a perfect risk control mechanism and timely improvement of the existing management problems is a top priority. This paper takes Bank H as an example to study the risk management of personal housing loans, exploring the basic performance of Bank H in terms of personal housing loan risks, analyzing the factors affecting its housing loan risks, and the current problems in the management of personal housing loan risks. A linear regression model is also constructed to analyze the causes of Bank H’s housing loan risk, the factors affecting personal housing loan risk, and the characteristics of Bank H’s housing loan risk. The experimental results of this paper show that through risk control management of the 10 indicators selected, Bank H’s annual housing non-performing loan ratio declined by 19.392% and was effectively curbed. It is inferred that effective financial risk management decisions can be an important tool for risk management in averting the risks associated with commercial bank housing loans. Therefore, a sound post-loan risk management mechanism for personal housing loans is essential and the only way to improve the resilience of commercial banks.

The COVID-19 Crisis and the Financial Impact on Family Firms

Abstract This paper analyses literature related to the impact of COVID-19 on family firms’ financial decisions. Presenting their distinctive characteristics and their responses to both past crises and the current one, the aim is to single out the key factors that ensure these firms’ economic continuity. The analysis of the key factors shown in the studies makes it possible to identify and understand behavioural aspects, such as those relating to business resilience, employed by owners of family firms, which take precedence over traditional financial management decisions. The analysis of the financial impact of the current crisis on family firms will help improve their resilience to future exogenous impacts.

DESIGN OF “AKUSAHA” ANDROID-BASED APPLICATION IN THE FINANCIAL MANAGEMENT OF BATIK JETIS SIDOARJO SMEs COMMUNITY

As one of the commercial and industrial cities in East Java, Sidoarjo has great potential in developing the SMEs sector. Uncertain capital constraints are difficult for SMEs. The ability to manage the finances of SMEs entrepreneurs is very important for business performance and business continuity. Without an understanding of SMEs about basic economic concepts, SMEs are unable to make financial management decisions. Most SMEs entrepreneurs, including SMEs entrepreneurs in Sidoarjo, experience this problem in general. Of course the problems faced will have serious consequences in the future, such as capital problems and tax consequences which will certainly affect the sustainability of the SMEs business. This activity is carried out in the form of training and mentoring. This program introduces resource persons who are professionals in their respective fields, through lecture techniques, discussions and mentoring practices, to the application of knowledge sharing methods to create an operational management system for company accounting and financial management. These trainees are members of the Batik Jetis Sidoarjo association who need special treatment in order to quickly rise from adversity and increase their profits by studying operational management of corporate accounting, corporate financial management and corporate governance. The AKUsaha application is an Android-based application developed according to the needs of SMEs. After attending the training, the student team assists the SMEs financial management process using the AKUsaha application face-to-face with SME players every month on Saturdays and Sundays. As a result, SME actors can understand the flow of cash coming in and out of their business, so that they can provide consideration for making business economic decisions. In addition, it is also useful for SMEs for reporting annual tax returns to applying for business capital loans.

The Effect Of Audit Quality, Human Resource Management, Competitive Advantage, On Financial Decisions And Financial Performance On Expedition Services

The importance of financial management is to ensure a regular and adequate supply of funds. Optimum utilization of the company's organizational finances is of course through financial management. Financial management is an important part of the management financial governance process which includes resource mobilization, program priorities, the budgeting process, all of these activities reflect economic activity and are certainly in accordance with an economic perspective and information systems. For the continuity of good financial governance, it is hoped that appropriate analysis and evidence will be used in making financial decisions or management decisions with economic variables from the economic system through financial performance, competitive advantage, human resource management and audit quality. In a company there are elements that need to be understood such as actions, behaviors that describe everything related to financial management in making decisions in companies with logical considerations. In this study is an overview of the shipping service companies listed on the Indonesian stock exchange with financial governance and boundaries so that problems that arise in financial governance can be observed and narrowed down for a management decision. When patterns are carried out in financial governance through studies of audit quality, human resources, competitive advantage of financial performance, it is hoped that there will be influences that are closely related to each other to support each other in order to achieve a more advanced corporate financial decision, as well as an overview for making a decision that is good and right

Research on the Influence of Green Financial Investment Decision Factors Under the Background of Environment, Society, And Governance

At this stage, with the continuous development of China's socialist market economy, green financial investment has come into being. Investment and financing operation behavior has become an important economic behavior of enterprises in addition to production and operation activities and is also a key factor in enhancing market competitiveness. The investment decision is the core content of enterprise financial management, and scientific and reasonable green financial investment decisions can provide financing opportunities for more enterprises. This paper analyzes the factors affecting green financial investment decisions in the context of environment, society, and governance. Companies wanting to maximize profits from green financial investments need to choose a promising portfolio approach. This paper makes several recommendations to address the green financial investment decision, aiming to promote the sustainable and healthy development of the investment industry.

Financial Knowledge of Women And its Impact on Investment Decision Making

This paper examines the financial literacy of women and their attitude on investment. The contribution of women all over the world is overwhelmingly increasing in their family, businesses and our society which is also being recognised. This content discussed below also attempts to highlight the role and identify investment decisions of both working and non-working women’s as regarded by different types of researches conducted worldwide. We will also come to know through this study, that women tend to have a very conservative attitude, lack of confidence, risk averse as well as lower levels of financial knowledge and they are also dependent on guidance from others because they are being one of the essential parts of our routine. Nowadays, financial literacy amongst women has tried to gain their attention for improving their personal investment and financial management decisions in our nation. Such knowledge helped their investment decisions and it positively and significantly influenced their behaviour to consider rational investment decisions. Through, this research we came to know how it continues to be an important factor and predictor of financial behaviour. Researcher had surveyed 196 women from different occupational sector to know the impact of financial knowledge of women on their investment decision making and concludes that there is a significant impact of “financial knowledge” of women on their investment decision making.

Approaches to the Assessment Liabilities’Analysis

The paper substantiates the approach to the assessment liabilities as an independent object of analysis. The research theme is relevant from several positions: the formation trend of estimated liabilities is gaining wide popularity; their creation is dictated by new trends in the macro-environment; stakeholders’ requirements; transforming legislation in accounting and reporting; the competitive environment for the functioning of an economic entity. The purpose of the study is to develop recommendations for expanding the classification of assessment liabilities and determining the sequence of their analysis as a special object. This affects the assessment of financial indicators and management decisions, as well as adjusting comprehensive analytical coefficients, considering the specifics of the formation of estimated liabilities. The work is based on the researching and generalization of theoretical materials on the development and formation of financial statements, methods for a comprehensive analysis of organizations’ activities. In substantiating the principles for calculating indicators and approbating the results, the authors used the actual reporting data of several largest Russian enterprises. They applied such research methods as monographic, data systematization and its analysis. Author’s working-out and proposals can be useful both for scientists and methodologists as a basis for continuing scientific research and analysis of the organization’s activities, and for specialists in preparing financial statements, for making managerial decisions and changing accounting policies (to justify a change in the procedure for assessing estimated liabilities).

Value-Creation Efficiency as a Decision-Making Basis and Its Assessment in the Financial Management of Energy Companies: Evidence from the Polish Capital Market

A study of the efficiency of the energy companies that are listed on the Polish capital market, which will be the object of the analysis in this paper, is focused on assessing the degree of accomplishment of their basic financial objectives, namely, the maximization of their market values. The main research methods that are used in the article are methods for analyzing and evaluating the literature (in order to present the current scientific achievements in the field under study) and descriptive statistics and mathematical statistical methods for analyzing the interdependence of the phenomena (used to characterize and compare the analyzed energy-sector companies, as well as to quantify the determinants of the value-creation efficiency of these companies). This article is focused on the conditions and problems that are related to the decision-making processes that are aimed at increasing efficiency in the area of building enterprise-value. These require the use of tools for efficiency measurement that enable management to quantify and assess changes in an enterprise’s market value and the efficiency of its creation. Within the conducted research, it has also been proven that this is the market perspective that is of key significance from the point of view of the criteria of making financial management decisions. The market perspective reflects the expectations of the majority of company stakeholders, to the fullest. The study showed that the allocation of capital in the listed energy companies during the period of 2014–2020 was subject to a relatively high risk of losing the economic value of the invested capital. In terms of asset value, dividing the studied group of companies into portfolios of two groups of companies additionally showed that the volatility of the market and equity returns for the smaller companies was higher than it was for the larger companies.

PERANAN SISTEM INFORMASI AKUNTANSI SEBAGAI ALAT DALAM PENGAMBILAN KEPUTUSAN MANAJEMEN PADA PT. BPR BUDISETIA

The accounting information system is needed by all parties, for internal and external to the company. The accounting information system will be one of the bases for making financial management decisions. Accounting information is obtained from the process of processing economic events which include collection, measurement, and processing. Accounting information can serve as a stimulus to achieve there is a problem with how actual performance records are presented Goals are set in budgets or notified to managers They fail to meet their production or profit targets Predetermined field studies are carried out by conducting on-site research at PT. BPR Budisetya. Literature research by collecting theoretical data Sourced from books, magazines and literature related to the issue discussed. Analysis of Accounting Information Systems management decisions are made through comparisons between theories to review the differences from the existing reality.

The Impact of E-Business on Entrepreneurship Development in the Context of COVID-19

The COVID-19 pandemic impacted every aspect of life on a global scale. E-business has become a key factor influencing the profitability of businesses in various fields, regardless of their size. The aim of this study was to assess the effectiveness of e-business in entrepreneurship development in various fields during the COVID-19 pandemic. For this purpose, a panel analysis of data from 212 micro, small, medium-sized and large companies, and nine business sectors (trade, chemical, light, pharmaceutical, food, agricultural, HoReCo (hotel and restaurant industry), electronics and IT, transport) was used with data comparison for 2019 and 2020 in Ukraine, Bulgaria, Poland, Moldova and Georgia. The e-business platform was found to be the key indicator of maintaining performance during a pandemic. The analyzed questionnaire data show that 58% of respondents saw an increase in online income in 2020 compared to 2019 that in such sectors as trade, IT and pharmacy. There were 59% of respondents who saw the need to expand communication networks with existing and potential customers, because it was positively correlated with the efficiency of e-business. Besides, the results show that equity financing and proper liquidity management consolidate the economic performance of businesses in terms of return on equity and return on assets. Our findings are useful to managers and investors, and can help them make the best decisions about their management or investment activities. Moreover, the study demonstrates how companies were responding to the pandemic in order to identify sectors that are more vulnerable to the effects of the crisis and the key financial management decisions that companies need to make during the crisis.