Financial Planning Model Research Articles

The moderating role of financial trust in retirement financial planning

ABSTRACT Although financial trust has been modeled as a critical predictor of retirement financial planning activities, insufficient understanding has been developed concerning the relationship between financial trust and the effectiveness of the model of retirement financial planning. This current research creatively evaluated the moderating role of financial trust in the model of retirement financial planning in a sample of young working adults in Shanghai and Shenzhen, China (N = 422). Results presented evidence to support financial trust strengthened the pathways in the model of retirement financial planning. For example, social support was positively and significantly linked to retirement financial behaviors in the subsample reporting high financial trust but not among those with low trust; Risk tolerance was positively and significantly associated with retirement financial planning behaviors in the high-trust subsample but not in the low-trust subsample; Future time perspectives positively and significantly connected to retirement goal clarity in the high-trust but not low-trust respondents. Our findings improve the understanding of the model of retirement financial planning by increasing its complexity and providing new entry points to enhance retirement financial planning, namely promoting financial trust among the public. The results also propose a potential mechanism that can be used to explain how manipulation of financial trust will lead to better retirement financial planning.

Marketing Strategy Plan of Coca-Cola Company in the UK

Marketing is crucial to the success of an enterprise. This report is to develop a marketing strategy plan for Coca-Cola company, including seven parts: introduction, situation analysis, market segmentation, innovation, resource allocation, conclusion and recommendation. Situational analysis includes macro-environmental factors, such as policy, economy, society and technology; Industry elements like competitors, suppliers and substitutes; Internal factors, such as the strengths and weaknesses of Coca-Cola. Coca-Cola divided the market into different segments and target each segment with suitable products, which including provides Coca Cola range with different varieties for age segment (18-35); Multiple size of bottles target family size segment; Multiple bottles with different materials target income group; Sugar and calories-free drink target health-conscious group; “Christmas Celebration Bottle Bow” target specific occasion - Christmas. In terms of innovation, Coca-Cola launched new products, including Coca-Cola energy, Simply smoothie and Honest cold brew coffee. Moreover, it also developed new packaging material which is KeelClip™ and is going to replace all the plastic packaging from all can multi-packs. In addition, Coca-Cola innovated its service, which is the adding of loyalty scheme to vending machine. Coca-Cola uses financial planning model to determine the budget and other resources that should be allocated to each project, it invested lots of money into Diet coke and new packaging technology. The recommendation for the future development is expanding markets to health and food areas as well as target other age group (50-54) and introduce suitable products.

Economic sustainability for developing a less polluting eucalyptus-charcoal productive system in emerging markets

Charcoal plays a relevant role in developing countries, with potential to contribute to the energy needs as a cheaper and carbon-friendly alternative. In Brazil, eucalyptus-charcoal has gained attention as an input for metal-steel industries, mostly supplied by small and medium forest producers. Those commonly use rudimentary charcoal-kilns, characterized by higher greenhouse gas (GHG) emissions, reduced productivity and economically unsustainable impacted by their reduced financial management. In order to fulfill this gap, a simplified financial planning model and an economic analysis of a less polluting charcoal productive system, called kilns-furnace system, were performed, also comparing to traditional charcoal-kilns. A differentiated cost of capital pricing model was also proposed, adjusted to bioenergy projects in emerging markets. Results showed that kilns-furnace system presented the best financial indicators, with greater free cash flow capacity, shorter reimbursement period, reduced charcoal production cost, better return on invested capital and a financial resilience even under pessimistic conditions. With its risk-return ratio verified, kilns-furnace larger insertion may be an attraction for charcoal producers, with probable increased long-term economic sustainability when compared to traditional kilns. The proposed cost of capital pricing model opened a new perspective for its calculation in developing countries, and should be used by producers, companies, and government in investment decision and as a guidance for financing lines.

Адаптація системи фінансового планування та бюджетування до сучасної моделі розвитку університетів

The aim of the article is to develop an adapted system of financial planning and budgeting to the modern model of university development, focused on achieving strategic development priorities in the context of expanding the financial autonomy of higher education institutions (HEIs). On the basis of the above defined aim, the following tasks were performed: a critical analysis of literary sources was carried out from the position of identifying traditional and results-based approaches to university budgeting; the traditional model of financial planning and budgeting of the university is defined; a system of financial planning and budgeting adapted to the modern model of university development was elaborated. The work uses such research methods as analysis, synthesis, systematization, coefficient and visualization methods for the development of both the traditional and the adapted system of financial planning and budgeting. The main results of the study are: definition of the traditional model of financial planning and budgeting of the university, explanation of the relationship between its components, substantiation of its ineffectiveness in the conditions of transition to a new economic model of university development, focused on expanding financial autonomy. The specified hypothesis became the basis for the development of an adapted system of financial planning and budgeting, which is based on orientedness towards results, achievement of strategic priorities for the development of higher education institutions, identification of responsibility centers responsible for the diversification and growth of budget revenues, with the simultaneous opportunity to participate in their distribution for motivation personnel potential, creation of comfortable working conditions along with an appropriate material and technical support. This approach integrates all types of financial planning in an integrated manner, while strategic financial planning as a vector of the university’s development is based on it. The results of the study are more relevant for public universities.

Policy analysis to maximize the firm value: performing firm valuation using system dynamics

PurposeThe purpose of this study is firm value management through corporate finance policy design and scenario analysis to maximize the firm value.Design/methodology/approachThe study develops a system dynamics model for an oil firm and incorporates the financial and physical processes to perform the firm valuation. The model is simulated under the current and alternative investment, capital structure and dividend policies of the case firm, assuming different oil and gas price and tax rate scenarios to identify which combination of policies maximizes the firm value.FindingsThe simulation results suggest that lowering the volume of investments, increasing the debt ratio and reducing the dividend payments from the current level increases the share price, given increased oil and gas price expectations and lower tax rates. However, the total firm value outperforms with increased investments toward the end of the simulation period. In case of decreased oil and gas price expectations, lower volume of investments, lower debt ratio and lower dividend payments increase the share prices, given lower taxes.Originality/valueThis study entails significance as it provides a comprehensive financial planning model for an oil firm, which incorporates the complex interactions of key financial and physical processes of the firm. The study contributes to debates on corporate finance policies by integrating multiple theories, accounting for accumulation processes and feedback loops and their non-linear interactions. The study proposes the consideration of combined impact of policies for firm value management.

ИНТЕГРИРОВАННАЯ МОДЕЛЬ КОРПОРАТИВНОГО ФИНАНСОВОГО ПЛАНИРОВАНИЯ НА ПРЕДПРИЯТИЯХ НЕФТЕГАЗОВОЙ ОТРАСЛИ

The article is devoted to the actual problems of corporate financial planning at the enterprises of the oil and gas industry, whose activities are largely subject to changes in external factors of the business environment. The traditional model of corporate financial planning does not take into account the principles of flexibility, adaptability, scenario and realism when building predictive financial plans. The authors of the article consider modern financial technologies in the corporate financial management system and propose an integrated financial planning model based on the combination and combination of long-term scenario planning, risk-based planning and rolling budgeting.

Modeling and Analyzing a Multi-Objective Financial Planning Model Using Goal Programming

Optimal financial planning plays a vital role in maintaining concentration and on the path as the organization extends, when new challenges materialize, and when unpredictable situations pounded. This study aims to develop and implement a goal programming model to evaluate financial planning based on the annual financial report of Saudi Basic Industries Corporation (SABIC), which assisted it in developing the financial planning model. This study is mainly designed to analyze SABIC’s budgeting structure; therefore, in order to maximize the benefits from the whole budget, goal programming is implemented for the entire budget. As a result of this study, we identified the following objectives as specific: reduced expenses, increased revenue, increased net profit, increased fixed assets, reduced debt, and increased equity share participation as a result of this project. Moreover, the analysis involved determining whether all objectives were met at the end of the study. Consequently, this study will benefit industrial institutions in achieving their financial objectives.

A regional model of simultaneous investment, production and financial planning of programs for innovation development

Subject. We address the planning of programs for innovative development of the region, which are based on simultaneous investment, production and financial planning. Objectives. The aim is to create a scientifically sound flexible management model that would consider the specificity of cyclical development of industrial region’s innovative system and the level of its socio-economic development, help overcome the economic determinism of territories, and boost the economic growth. Methods. The regional model of planning the innovative development programs implies global optimization of domestic current costs of research and development (R&D) of the industrial region, depending on its investment planning, and based on data on trends in fixed investments in the region; on production planning, according to data on trends in GRP; and on financial planning, based on data on trends in accounts payable of organizations. Results. We created a regional model for planning the innovative development programs. It rests on simultaneous investment, production and financial planning. The model has certain implementation features. The most elaborate for solving the problem under review is a pattern search algorithm. Adding this algorithm as a hybrid function for a genetic algorithm enables to achieve a sufficiently high-quality solution to the optimization problem. In contrast, adding the interior point method as a hybrid function does not always significantly improve the quality of global optimization. Conclusions. The presented model helps government entities make better decisions regarding the planning of innovative development of the country’s industrial regions.

A nursing perspective of the financial planning model for disaster preparedness

Indonesia tends to be at a high risk of natural disasters, non-natural disasters, and social disasters. To minimize disaster impact, planning and management of finances are crucial. Unfortunately, a nursing study discussing the financial model during a disaster is lacking in the literature. The study aims to develop a financial planning model integrating Muhammadiyah Disaster Management Center in Magelang, Indonesia. An observational approach was involved in the study design. The member of One Muhammadiyah One Response (OMOR) in several districts was engaged. A checklist and closed-ended questions were used for the data collection process. The study established a financial planning model that can be helpful for community nurses working in disaster areas. Further study is required to evaluate the collaboration with other healthcare professionals in disaster preparedness.
 Keywords: Emergency care; disaster preparedness; community nursing practice; nursing perspective; financial planning

Financial Planning for Retirement: Developing an Integrated Model

With higher life expectancy of the aging population, retirees nowadays will spend a prolonged period of time after retirement. Yet, past studies have consistently revealed a lack of retirement savings among working adults, implying an inadequacy to maintain the quality of life in late adulthood. This study therefore aims to identify the factors influencing the working adults’ intention to purchase financial products for retirement (such as deferred annuity and voluntary contribution to retirement fund) and develop an integrated model of financial planning for retirement. A total of 598 Hong Kong Chinese working adults from diverse age and income groups completed an online survey on intentions to save and purchase specific financial products for retirement. The results of MANCOVA reveal that compared to older workers, younger workers had lower intentions to save and purchase financial products for their retirement even after controlling for their monthly income [F(16,1797)=2.24, p=.003, partial n2=.015]. An integrated model of financial planning for retirement is proposed by incorporating the concepts of the interdisciplinary psycho-motivation model and Theory of Reasoned Actions (χ2 = 40.42, p<.001, CFI = .99, RMSEA = .07, SRMR = .02). In particular, the positive effects of financial literacy, subjective norms, social support, and future time perspective on intention to save and purchase financial products for retirement have been found to be mediated by retirement goal clarity but not attitudes towards retirement. Future direction on promoting younger and older workers’ retirement planning especially in the financial domain will also be discussed in the presentation.

Implementation of Islamic Family Financial Planning Amidst the Covid-19 Pandemic

Management of Muslim household finances contains several characteristics that distinguish it from non-Muslim household economic systems. In this study, the indicators are the knowledge of financial planning, experience of financial problems, knowledge of faith, and knowledge of Islamic financial instruments. The Respondents are married Muslims or Muslim individual who can manage Islamic family finances. The data were analyzed descriptively and continued with the SEM model estimation. The results showed that most respondents had not adjusted their financial budgets to the pandemic conditions. Meanwhile, from the SEM model, it is known that knowledge of financial planning, experience of financial problems, knowledge of Islamic financial instruments has an effect on Islamic financial planning with the greatest influence from knowledge of Islamic instruments of 0.48. The SEM Model of Islamic Family Financial Planning is a good enough model to describe the condition of respondents during the Covid-19 pandemic.

Comparative Analysis of Financial Reporting of Selected Small and Medium Enterprises (Smes) in Baguio City: Basis for a Financial Planning Model

Comparative Analysis of Financial Reporting of Selected Small and Medium Enterprises (Smes) in Baguio City: Basis for a Financial Planning Model

Gender Difference in British Young Adults’ Retirement Saving Decision-Making Process: A Multi-Group Analysis Using Structural Equation Modelling (SEM)

Several changes have been made to the state and workplace pension schemes in recent decades in Britain. One of the implications of these changes is that individuals now carry greater risks in accumulating and generating retirement income. Many studies have discussed the role of attitudinal and behavioral tendencies in the retirement saving decision-making process. However, the way these tendencies manifest themselves is assumed to be identical for men and women, as most studies examined the partial gender effect. These differences are particularly meaningful for those in early stages of adulthood, as their experience of key life events is shaped by socially constructed gender norms. While an increasing gender disparity in pension wealth over the life course is widely recognized in Britain, not many studies have provided empirical evidence on potential gender differences in young adults’ additional retirement saving. This study examines whether men and women differ in their retirement saving decision-making process, and if so to what extent. To do so, it uses an adapted version of Hershey and colleagues’ model of financial planning with the fourth wave of the Wealth and Assets Survey (WAS). Findings show that financial resilience, which represents individuals’ everyday financial behavior, is the most influential predictor for identifying retirement savers for both males and females. However, the manner in which their current socio-economic environment – income, homeownership, marital status, offspring – is interlinked with financial resilience varies considerably by gender. The partial effect of education on myopia also differs by gender. These findings suggest that there are indeed gender differences in the retirement saving decision-making process and that failing to consider such difference in policies may widen the gender gap in retirement saving.

Scenario-based financial planning: the case of Ukrainian railways

The crisis in the global and national economies negatively affects the predictability of companies. In such conditions, it becomes impossible to correctly forecast and plan based on the traditional methods and models. Therefore, the aim of this study is to develop an approach to forecasting and planning in conditions of high uncertainty in the functioning of companies. The methodological basis of the study is evolutionary-institutional management, which allows to consider the development of the company as a complex evolutionary process. A scenario approach is used as the basis for forecasting, which allows to study the dynamics of any company in an unstable environment. The study includes three blocks: developing scenarios, scenario forecasting, financial planning. The study is conducted based on data on the functioning of Ukrainian Railways, JSC, which is the operator of the rail infrastructure and the national carrier of goods and passengers in Ukraine. Scenarios are developed considering the specifics of the products of rail companies and based on factors (key uncertainties) that determine the effectiveness of their functioning. Scenario forecasting is based on considering the peculiarities of the company's production process, its cash cycle, and the formation of financial resources. As a result, forecast estimates are obtained for three scenarios (optimistic, pessimistic, and negative). The financial planning model is developed as a system of interrelated models of cash flow planning (operational, investment and financial). This approach allows to plan the sources of funds of the company and their use, taking into account possible changes in the external and internal environment of the company and, as a result, ensure its stable functioning in the implementation of any scenario.

System dynamics modeling with fuzzy logic application to mitigate the bullwhip effect in supply chains

Purpose A plethora of studies focused on the cause and solutions for the bullwhip effect, and consequently many have successfully experimented to dampen the effect. However, the feasibility of such studies and the actual contribution for supply chain performance are yet up for debate. This paper aims to fill this gap by providing a holistic system-based perspective and proposes a fuzzy logic decision-making implementation for a single-product, three-echelon and multi-period supply chain system to mitigate such effect. Design/methodology/approach This study uses system dynamics (SD) as the central modeling method for which Vensim® is used as a tool for hybrid simulation. Further, the authors used MATLAB for undertaking fuzzy logic modeling and constructing a fuzzy inference system that is later on incorporated into SD model for interaction with the main supply chain structure. Findings This research illustrated the usefulness of fuzzy estimations based on experts’ linguistically and logically defined parameters instead of relying merely on the traditional demand forecasting based on time series. Despite the increased complexity of the calculations and structure of the fuzzy model, the bullwhip effect has been considerably decreased resulting in an improved supply chain performance. Practical implications This dynamic modeling approach is not only useful in supply chain management but also the model developed for this study can be integrated into a corporate financial planning model. Further, this model enables optimization for an automated system in a company, where decision-makers can adjust the fuzzy variables according to various situations and inventory policies. Originality/value This study presents a systemic approach to deal with uncertainty and vagueness in dynamic models, which might be a major cause in generating the bullwhip effect. For this purpose, the combination between fuzzy set theory and system dynamics is a significant step forward.

To Care and to Be Socially Responsible and Profitable: Developing A Financial Planning Model for CSR Activities

This study is aimed at developing a financial planning model based on the stakeholder perspective of corporate governance for the Corporate Social Responsibility (CSR) activities. The expected output of the model is the financial condition projection accommodating CSR activities for a certain period.

Building a model of strategic financial planning for an organization

The article considers approaches to the definition of strategic financial planning, reveals their shortcomings and advantages. Objective: To create a methodological basis for the development of the organization's financial strategy. Methodology: The article is based on the results of research of modern domestic and foreign theories of strategic planning. Application of the results: Increase the validity of the management decisions made based on the results of strategic financial planning. Conclusions: Strategic financial planning is proposed to be considered from the point of view of the system and process approach, which will allow to create an effective functional apparatus, including a system of goals and objectives, principles and tools for the formation and use of financial resources to carry out the activities on developing the directions of organization growth. The formed algorithm of developing a strategic financial planning model allows to take into account the organization’s life cycle stage and its market position in the industry when determining the target parameters of financial development in the long term perspective. An indicator of maximizing the return to capital represented by own and borrowed funds is proposed as a key indicator of the model under consideration. Complying with the set of limitations developed, this indicator provides a more reliable and comprehensive assessment of organization’s development planned directions.

FINANCIAL PLANNING MODEL FOR ESTABLISHING A NEW BUSINESS A CASE STUDY ON “BLUE OCEAN” RESTAURANT

This article aims to (1) design an appropriate financial planning model for a restaurant, (2) give an example of a financial planning model that may be can be applied to the same kind of business, (3) give a guidance to the owner and employee in daily financial operational activity. This article is based on (1) the analysis of theory and its application in a real business, especially at Blue Oceanrestaurant, as a new business, (2) survey on the surrounded area, and (3) interview with the business’ owners in the surrounding area .We have analyzed all the data and information, and then try to describe it in a financial planning model, consisting of needs and uses of investment funds (Start-up cost), start-up balance sheet, pro forma income statement, cash budget, pro forma endingbalance sheet.It can be concluded that a financial planning model will give a clear guidance to the owner and the employeehow to manage daily operation and financial control, and it is clear what financial goals and objectives have to be achieved by the owner (in the next five years).

Financial Planning for Retirement: Age-Related Differences Among Spanish Workers

This article tests an integrated model of financial planning for retirement (FPR), with 948 Spanish workers aged between 30 and 63. Overall, the three model dimensions—capacity, willingness, and opportunities to plan and save—show a significant association with financial planning for retirement. The moderator role of age in the relationships between antecedents and financial planning was tested. Consistent with our hypothesis, younger participants showed a greater level of FPR if they were characterized by a high level of education. The interaction between both age and psychological preparation for retirement and retirement goals clarity failed to reach statistical significance. We discuss how financial planning effectiveness could be increased based on the results of importance-performance map analyses.

Can’t Save or Won’t Save – The Role of Financial Resilience in Retirement Saving Among Young British Adults.

This study examines the role of human agency in additional retirement saving activity for British adults in their 30s and 40s on the premise that individuals are increasingly encouraged to save more and from earlier on. Young adults’ inadequate retirement saving has largely been explained by undesirable attitudinal or behavioural tendencies, such as myopia, the disinclination to save (‘won’t save’) or a simple lack of financial resources (‘can’t save’). The study examines to what extent these two aspects may help to explain young adults’ retirement saving decision-making processes. Using a modified version of Hershey and colleagues’ Model of Financial Planning, the study analyses how attitudinal and behavioural tendencies and their socio-economic characteristics interact, and to what extent such interaction is meaningful. Results show that financial resilience, which refers to individuals’ everyday financial behaviours, is the strongest predictor of additional retirement saving activity beyond formal pensions. This quality, however, is very closely connected to an individual’s socio-economic situation, such as household income and homeownership. These findings suggest that individuals’ attitudes and behaviours are highly relevant to understanding retirement saving decisions but are also intertwined with their social and economic arrangements.