Positive Financial Results Research Articles

Determinants of Financial Viability of Forest Concession in Brazilian Amazon

This study aimed to assess the financial viability of forest concessions in the state of Pará, Brazil. Two Forest Management Units (FMUs) were analyzed: FMU-2, located in Saracá-Taquera National Forest, and FMU-3, located in Caxiuanã National Forest. Financial indicators were evaluated under different timber productivity scenarios (20 m3/ha and 25.8 m3/ha). At a logging intensity of 20 m3/ha, FMU-2 was not financially viable. However, both FMUs were financially viable at 25.8 m3/ha. Sensitivity analysis demonstrated that FMU-2 requires a logging intensity of over 22 m3/ha and a sawmill yield efficiency of at least 45%. The ideal cost for sawn wood would be USD 226.53/m3, with royalties of USD 16.00/m3. FMU-3 consistently demonstrated positive financial results, despite fluctuations in production costs. The financial viability of investing in forest concessions in state of Pará depends largely on forest productivity, sawmill yield, royalties, and sawn wood costs.

Profitability of dairy goat farms in Bulgaria

Abstract. The purpose of the present study was to establish the economic performance of dairy goat farms in Bulgaria by using the indicator profitability and the related indicators – total production, total revenues, total costs and profit per doe (before and after subsidy). Data for 2022 were provided by the owners of 8 farms within the survey and processed using a mathematical-statistical model and Excel program. The adopted production system was semi-intensive with indoor winter period and grazing (supplemented with cereals and hay) during most of the year. Profit before subsidies was found positive only for farm 5, and all other holdings were unprofitable based on the results of their own production. When subsidies were added, some of them reported a positive financial result, while others remained loss-making. Based on the results found within the study, it could be summarized that in the dairy sector the level of milk production is the leading factor for farm income. Оf great importance are also the sale of value-added dairy products, own feed production and optimization of labour costs. In most farms, subsidies (incl. for pastures) are extremely important for the viability of the farms. In addition, when analyzing the economic efficiency of dairy goats, an individual approach to farms is necessary. All elements of the production system, both biological and economic, should be taken into account in order to improve production and profits.

Impacts of Technological Innovation on Product and Service Quality and Sustainable Financial, Environmental and Social Results in the Aeronautics Sector: A Brazilian Case Study

As a result of technological advances and the increase in the quantity and diversity of companies operating in the market, an increasingly competitive scenario emerges in which innovative approaches have become important for the survival and visibility of companies in the market. Furthermore, technological innovation can be considered a source of creation of positive or negative financial results and environmental and social impacts, which requires verification. Thus, in this article, results are presented on the impacts of innovation on quality; results are also given in relation to aspects related to financial, environmental and social impacts. The research is a qualitative analysis based on a case study methodology: the focus comprises different companies and areas of a large Brazilian group in the aeronautical industry, which operates in different countries around the world. Professionals involved with technological innovations in these companies were interviewed and the results obtained were utilized to validate and corroborate the research. After conducting the survey, it can be seen that innovation can help in adaptation, meeting the new demands and opportunities of the market, while impacting aspects of quality: conformity to the requirements of the market where the company operates; product, service and/or process performance; customer satisfaction and loyalty. The meaning of quality may vary according to the business objectives of a given company.

FORMATION OF THE INCOME PART OF THE STATE BUDGET OF UKRAINE UNDER THE CONDITIONS OF THE MARITAL STATE

The article describes the peculiarities of the implementation of the state budget on revenues during the period of martial law. The problems caused by russia's armed aggression in relation to Ukraine’s budget policy are outlined. It has been found that in fact, the need for financial assistance is provoked by the growth of the military expenses, since the revenue part of the budget is approximately the same as the expenses for the Ministry of Defense alone. The structure of losses in the economy and trends in GDP changes are analyzed. It is noted that in the general the picture of the economy of our country, state expenditures occupy an increasingly large volume. As in the previous year, the largest item of budget expenditures in 2023 is security and defense; at the same time, expenditures directed at it compared to the pre-war period have increased almost tenfold. The structure of the economy for 2022-2023 has undergone significant changes, the share of industries with a high tax rate has decreased, which negatively affects the level of tax payments from the economy. It was revealed that in 2023, as a result of the policy of the National Bank of Ukraine (hereinafter – NBU), aimed at maintaining a relatively high discount rate, the profits of the banking system exceeded pre-war indicators several times, which allowed it to obtain a significant positive financial result. It was noted that a significant part of the state budget revenues was earned by the fuel and energy sector, which, despite the war, continues to be a successful component of Ukraine's economy. When forecasting the revenues of the state budget, one should take into account the high degree of uncertainty and unpredictability, which affects the high probability of deviation of the actual figures of the estimate from the planned ones. The main key risks can be called the continuation of the war and the uncertainty regarding the further ways of its development, non-return of refugees from abroad, insufficiently fast implementation of the reforms; lack of assistance from international organizations and governments. The latter is not a convention, but a fact, because the key source of income in 2024 will be external borrowing, since the country's own resources (tax and non-tax revenues, transfers) should be enough to finance only half of the expenses. In fact, the need for financial assistance is provoked by the growth of military expenses, and the budget is written in the form of loans.

Financial Performance of Accountable Care Organizations: A 5-Year National Empirical Analysis.

Of 513 accountable care organizations (ACOs) participating in the Medicare Shared Savings Program (MSSP) in 2020, 67% generated a positive shared savings of approximately $2.3 billion. This research aimed to examine their financial performance trends and drivers over time. The unit of analysis was the ACO in each year of the study period from 2016 to 2020. The dependent variable was the ACOs' total shared savings earned annually per beneficiary. The independent variables included ACO age, risk model, clinician staffing type, and provider type (hybrid, hospital-led, or physician-led). Covariates were the average risk score among beneficiaries, payer type, and calendar year. The Centers for Medicare & Medicaid Services (CMS) public use files (PUFs) and a commercial healthcare data aggregator were the data sources. ACOs' earned shared savings grew annually by 35%, while the proportions of ACOs with positive shared savings grew by 21%. For 1-year increase in ACO age, an additional $0.57 of shared savings per beneficiary was observed. ACOs with two-sided risk contracting were associated with an average marginal increase of $109 in shared savings per beneficiary compared to ACOs with one-sided risk contracting. Primary care physicians were associated with the greatest increase in earned shared savings per beneficiary. In contrast, nurse practitioners/physician assistants/clinical nurse specialists were associated with a reduction in earned shared savings. Under a one-sided risk model, hospital-led ACOs were associated with $18 higher average shared savings earning per beneficiary compared to hybrid ACOs, while physician-led ACOs were associated with lower average saved shared earnings per beneficiary at -$2 compared to hybrid ACOs. Provider-type results were not statistically significant at the 5% nominal level. No statistically significant differences were observed between provider types under a two-sided risk model. For all ACO provider types, building broader primary care provider networks was correlated with positive financial results. Future research should examine whether ACOs are conducting specific preventive screenings for cancer or monitoring conditions such as diabetes, hypertension, heart disease, obesity, mental disorders, and joint disorders. Such studies may answer health policy and strategy questions about the effects of incentives for improved ACO performance in serving a healthier population.

Анализ использования искусственного интеллекта в отраслях экономики и системе региональной исполнительной власти Российской Федерации

Announced as part of the Presidential Address to the Federal Assembly in February 2024, the Data Economy national project defines the demand for artificial intelligence (AI) technology in the system of public administration, economic sectors and business activities. AI technology is increasingly penetrating business activities, production processes, and the system of public administration, creating the need to improve methods for assessing its impact on economic development. The goal of the work is to supplement the methodological tools for assessing the level of use of AI in the economy of the Russian Federation. The object of the study is the use of AI in certain sectors of the economy and regions. The subject of the study is the interrelation between the balanced income of economic sectors, regions of the Russian Federation and indicators of the use of AI in entrepreneurship and public administration practice. The work considers AI not as a separate branch of the economy, but as a technology that, in turn, has an impact on the development of individual industries and regions. The author identified a direct dependence of the positive financial results of the activities of individual sectors of the economy, regions and the use of AI technology in them. The study shows that regions and industries with a relatively more favorable financial position use AI more actively. On the one hand, this creates opportunities for the development of industries and regions; on the other hand, it creates a lag in the application of AI technology. The obtained result is applicable in the system of state planning, determining priorities for economic development of both individual industries and the economy as a whole.

МЕТОДИКА ОЦЕНКИ АКТИВНЫХ ОПЕРАЦИЙ КОММЕРЧЕСКОГО БАНКА

The generation of the main financial result of commercial banks directly depends on the effectiveness of active operations. The evolution of financial relations, the achievement of the main goal of the credit institution’s activ- ities to obtain a positive financial result and the desire of commercial banks to use and diversify free cash flows in the economic environment – all this has determined the relevance of this scientific research. In their activities, all credit institutions constantly apply an effective banking management policy through methods of evaluating active transactions, as well as obtaining complete and timely information about the functioning of a credit institution is ensured by constant monitoring, timely prompt response to rapid changes in the banking services market in modern conditions, which contributes to their more efficient functioning. Generating a high financial result, maintaining an acceptable level of solvency and liquidity of banking activities is ensured by effective management of active operations of a credit institution, competent placement of available funds.

STRATEGIC CRITERIA FOR ASSESSING THE MANAGEMENT OF TELECOMMUNICATIONS ENTERPRISES IN THE DIGITAL ECONOMY

The relevance of the chosen research topic is due to the insufficient conceptual development of the paradigm of strategic management of telecommunications enterprises in the digital economy. The article reveals the essence of defining and applying strategic criteria for assessing the management of telecommunications enterprises. It is determined that the essence lies in the ability to predict the business situation, prevent the negative impact of internal and external factors, introduce measures to minimize costs, ensure the achievement of the set goals and, above all, obtain a positive financial result of the enterprise's activity - the desired profit. The article argues that the digital economy, which is spreading through active digitalization and is based on the activities of telecommunications enterprises, gives rise to a new type of strategic management and leads to profound changes in how telecommunications enterprises should be organized today and managed in the future. The article describes the current trends that already have a major impact on the organization of telecommunications enterprises and will shape changes in the strategic management of telecommunications enterprises in the near future. These circumstances require further scientific developments on the formation of new approaches to the strategic management of telecommunications enterprises and tools for their implementation based on strategic criteria for assessing the management of telecommunications enterprises in the context of the development of the digital economy. The author's approach to determining the directions of digitalization's impact on the activities of telecommunications enterprises is proposed, which allows to outline the strategic criteria for assessing the management of telecommunications enterprises in the long term. The study allows us to conclude that the strategic management of telecommunication enterprises in the digital economy requires expanded monitoring and analysis of the external environment; enhancing the safety, protection and empowerment of citizens, ensuring freedom of choice on the Internet, continuous improvement and development of telecommunication devices and channels and integration of innovations; supporting participation in the digital public space by creating a digital environment in which interaction between participants takes place through digital services.

СУЧАСНІ ПІДХОДИ ДО ОПТИМІЗАЦІЇ ПРОЦЕСУ УПРАВЛІННЯ ФІНАНСОВИМИ РЕЗУЛЬТАТАМИ ПІДПРИЄМСТВА

The article examines the model of the financial results management process of Alfatech Optima LLC. The financial results reflect a multifaceted system of economic relations at the current stage of the development of society, which affects the competitiveness of the company's products. It is accepted that today the problems of managing financial results consist in finding ways to increase revenue, optimize costs, and generate profit (loss). One of the main tasks of managing the financial activities of enterprises is to ensure the financial stability and competitiveness of the business entity in the longterm and short-term perspectives. Profit plays an important role in solving these problems. It is the positive financial result of the enterprise that acts as the main protective component against the threat of bankruptcy, is the main criterion for evaluating the efficiency of activity and, of course, the main goal of entrepreneurial activity. It is impossible to achieve this without reasoned management decision-making in the day-to-day work of managing the financial results of the enterprise. Therefore, ensuring the effectiveness of financial management at the enterprise involves the formation and implementation of a model for managing financial results. Management of financial results is a set of measures, principles and methods of formation and implementation of management decisions regarding the formation, distribution and use of the company's profit. It has been proven that the application of the structural-functional model of financial results management will allow the enterprise to more effectively use its available resources, plan its activities in advance and effectively manage profits. The tools for maximizing indicators of financial results from economic and financial activities and improving the efficiency and effectiveness of the enterprise's activities in general have been determined. As tools, factor and taxonomic analyzes of optimizing the management of financial results of the enterprise are proposed.

A feasibility analysis of reverse mortgages in Brazil

In this study, we examine the feasibility of reverse mortgages in Brazil from the perspectives of both policyholders and insurers. Reverse mortgage is a financial product where the property's ownership is transferred to an insurance company in exchange for a guaranteed annuity, while the insured retains the right to use such property until their death. Using monthly real state pricing data (2008–2019) provided by FipeZAP, we employ statistical modeling to predict future prices of properties to get the future insurer's expected results, while policyholders' annuity benefits are calculated using actuarial approach. To assess attractiveness, we calculate internal rate of return for different policyholder profiles and conduct profit test for the insurer. Our results indicate that, as an investment strategy, reverse mortgage has little or no attractiveness to the policyholder despite its actuarial fairness. However, it may be a viable option for increasing retirement income in case of a consistent real estate overvaluation. For insurers, the results are unfeasible due to the extended time lag for positive financial results, which only occurs after the policyholder's death. The inclusion of safety loadings can produce more favorable outcomes. Nonetheless, we recommend incorporating reverse mortgages as an elderly policy strategy to reduce reliance on state support during retirement, even if no attractive returns are provided as a financial investment. We also discuss policy implications (e.g., right to the city) to help the elderly stay connected to social support networks and local services.

Current state and priorities of sustainable development of agricultural enterprises

It has been proven that the peculiarity of agriculture is the close connection with the environment and the mutual influence between them, which led to the increased interest of scientists and practitioners in the implementation of the principles of sustainable development. It is argued that agriculture is the most vulnerable to climate change, as well as non-observance of scientific requirements in agricultural production can cause a negative impact on the environment. It has been determined that the largest share in the production of agricultural products is held by the corporate sector of the agrarian sphere, the development of which was studied on the basis of their resource provision and economic results of activity. It was concluded that in the current conditions, complex and even contradictory processes are taking place in the environment of agricultural enterprises, which are characterized by the following: significant changes in the number of economic entities and the area of agricultural land currently under cultivation; noticeable losses due to the war in the field of crop production, the strengthening of negative processes in the reduction of the number of agricultural animals in animal husbandry, etc. were revealed. It is calculated that agricultural enterprises in the conditions of martial law obtained a positive financial result, in particular, in 2022, they ensured the profitability of the operating room at the level of 20,3 % and of the entire activity – 13,6 %. Problems of a natural and ecological nature, caused by the manifestation of a number of negative factors in the development of agricultural production, have been identified. It is substantiated that the sustainability of the system manifests itself as a form of equilibrium of the socio-economic system, as a result of which, under the influence of external and internal changes, its properties of integrity are manifested, which allow to comprehensively form and rationally use resource potential, as well as to have the opportunity for expanded reproduction and minimize the negative impact on the environment. Sustainable agriculture involves achieving a balance of ecological, social and economic factors in agriculture in order to create opportunities to meet the needs of future generations. The existing practices of sustainable agricultural activity are summarized, namely: thrifty agriculture, best agricultural practices, organic agriculture, sustainable intensive agriculture, the model of «permanent agriculture» assumes harmony with natural processes, minimizes labor costs. Factors that affect the transition to new models of agricultural production based on sustainability are systematized, among which the following groups are distinguished: personal characteristics of the owner of the agricultural enterprise and his management, individual characteristics of the agricultural enterprise, behavioral characteristics of the owner and management of the enterprise, as well as external factors. Key words: sustainable agriculture, resource provision, agricultural enterprise, managers (owners), management, influencing factors.

Financial result of an economic entity as an object of assessment and analysis

The article presents the theoretical aspect of the concept of “financial result”, reveals the process of forming a positive financial result as the basis for the financial security of an economic entity, and substantiates approaches for its assessment and analysis. It is shown that any activity pursues some result, i.e. “the outcome, a consequence that completes some actions, phenomena, or development of something”. In macro- and microeconomics, the concept of “financial result of activity” is used. Many studies have been devoted to the formation and assessment of the essence of this concept, however, there is no consensus on this issue, despite the fact that much attention is paid to its study and analysis. The article is devoted to the consideration of this issue; the materials can be used as part of preparation in the field of Economics.

Factors of the business environment and their impact on the activities of enterprises in the Arctic zone

The issues of smoothing spatial differentiation are particularly relevant when it comes to the territories of the North and the Arctic, as they are an indispensable condition for curbing the processes of their degradation. Maintaining the population, improving transport accessibility, social security, increasing the competitiveness of business and entrepreneurship are among the top-priority strategic tasks, the development of solutions to which is given the closest attention today. Since the purpose of this study is to specify the ideas about the Arctic zone as an environment for doing business, the paper presents an analysis of the financial condition of enterprises in the Arctic zone of the Republic of Sakha (Yakutia). As the main research method was chosen the economic and statistical analysis. The profit, which is a positive financial result, is an indicator of the success of a commercial organization. The financial result is important not only for the entrepreneurs, the economic activity of business structures has an impact on the level and quality of life in a particular territory. The study showed that entrepreneurial activity in the Arctic zone is carried out more out of necessity than for the commercial success, its contribution to the economy of the republic is insignificant. The main field of activity for most commercial enterprises and organizations is agriculture, enterprises are are low-profit, but in proportion the share of unprofitable organizations in most municipal districts, it is comparable to other territories of the Republic of Sakha (Yakutia). The implementation of major infrastructure projects on the territory of the republic in the coming years can improve the business environment and have a positive impact on the development of entrepreneurial activity in the Arctic zone of the Republic of Sakha (Yakutia) if the balance of interests of municipalities, on the one hand, and raw material corporations and natural monopolies, on the other, is maintained.

The Impact of Companies’ Financial Results on Investors’ Financial Decisions During The COVID-19 Pandemic in Selected Companies Listed on The Warsaw Stock Exchange (WSE)

Positive financial results achieved by enterprises should improve market indicators, while negative financial results should affect the deterioration of market indicators. It is important from the point of view of the topic to examine the following hypothesis: There is a significant statistical relation between the net profit and the share price for IT and banking companies listed on the stock exchange; There is no significant statistical relation between the RoA indicator and the price to the book value for IT and banking companies; There is no significant statistical relation between the RoE indicator and the price to the book value for IT and banking companies.

Sustainability and interactive network branding in fast‐changing business environments

Sustainability and interactive network branding in fast‐changing business environments

STATE REGULATOR’S ROLE IN THE COUNTRY’S BANKING SYSTEM DURING WARTIME

Armed aggression and its negative impact on the exogenous and endogenous environment of economic agents aggravate the problems of the sectors of the national economy, in particular, the banking sector. In this context, the state acquires a key role in managing the processes of the banking sector at both the micro and macro levels. The aim of the article is to determine the key characteristics of the state’s influence on the banking sector in Ukraine during the active phase of the war. The method of synthesis, the method of economic and statistical analysis, and the case method were applied for the analysis. The methodological framework of the research is the method of strategic analysis. The key task of balancing the operational work of the banking sector, maintaining a stable macroeconomic condition and state security is emphasized. As a result, emphasis is placed on the need to define a system of key indicators for management by the regulator and central authorities during the war. Accordingly, the analysis of these indicators showed that the banking sector of Ukraine did not experience catastrophic losses in 2022, which indicates the success of the state in this area. In particular, the number of operating banks in Ukraine slightly decreased by -5.7% in 2022 to 67 banks. Moreover, it was recorded that the banking sector of Ukraine maintained a positive financial result at the level of UAH 12 billion net profit in Q3 2022. Prospects for future research consist of an in-depth study of factors influencing the complex of state actions at the micro- and macro-levels in terms of meeting the needs of the main groups of stakeholders.

Податкове регулювання будівельного сектору житлової нерухомості

The purpose of the article is to study the theoretical aspects of tax regulation and its role in the system of state regulation of the construction sector of residential real estate. The article examines the theoretical foundations of tax regulation, defines its levers, and tools, and considers the general characteristics of the mechanism of their influence on economic processes. State regulation with the help of tax measures is a complex mechanism that combines various tax levers that affect obtaining positive financial and economic results of business entities, meeting the needs of society, and increasing investment motivation. The use of taxation in the system of state regulation takes place based on relationships between subjects that operate in the market and as a result push for changes. Quite a variety of factors that create conditions for the application of tax regulators.
 The thesis is proved that the tax regulation of the development of the construction sector of residential real estate in Ukraine should be implemented through the provision of tax payment preferences. Tax benefits are the main form of tax incentives. The main types of tax benefits are considered and summarized, namely full or partial exemption from paying taxes; tax discounts by destinations, objects, and payers; differentiation of tax rates; postponement of payment or cancellation of debt; tax investment credit.
 It is noted that the promotion of the development of economic processes should be correlated with tax regulators, who will be able to act as a driving force for the activation of the construction industry while emphasizing the role of taxation in the reproductive process and in the creation of a public product. The importance of state tax regulation for the effective development of the construction sector of residential real estate in Ukraine is determined by the fact that the management of tax processes is carried out at different levels, because of which there is a need to regulate the system of connections and relations in all links and at all levels. Based on the results of the study, it is proposed to use tax incentives of an innovative and investment nature as a tax instrument of state support.

Generation of profit and loss statements by Syrian companies in the context of hyperinflation

Subject. This article deals with the issues related to the preparation of the Profit and Loss Statement by companies of the Syrian Arab Republic, taking into account consumer price indices in the context of hyperinflation, based on the provisions of IAS 29 – Financial Reporting in Hyperinflationary Economies. Objectives. The article aims to identify and find a solution to the problems of generating the Profit and Loss Statement, as well as develop appropriate methodological recommendations. Methods. For the study, we used observation, comparison, grouping, classification, generalization, and interpretation. Scientific works and publications of scientists on the theory of inflation and hyperinflation, the Central Bureau of Statistics (Syria) (CBS) data on consumer price indices, provisions of IAS 29 on the formation of reporting by organizations whose functional currency is the currency of the hyperinflationary economy, are the methodological basis of the study. Results. The article presents a test of the methodology for compiling the Profit and Loss Statement taking into account the recommendations of IAS 29 and shows the process of reporting using the materials of the Syrian Al-Ahlia Vegetable Oil Company. It also reads about the impact of hyperinflation on the items of the company's Profit and Loss Statement and its financial results, and compares the reporting data with indicators calculated on the basis of historical information. The article confirms the hypothesis that it is necessary to form a Profit and Loss Statement on the basis of the provisions of IAS 29 in the event of high inflation. Conclusions. In the context of hyperinflation, financial statements based on historical cost are unreliable, mislead users, and cause difficulties in making management decisions. A positive financial result determined through the historical cost principle, is a fictitious profit.

Formation of environmental marketing strategies for the development of enterprises on the market of goods and services

The formation of ecological marketing strategies for the development of enterprises in the market of goods and services is an urgent task considering growing social and environmental burdens. A modern enterprise must consider not only the positive financial result of its activities but also its responsibility to nature and society. Therefore, the study is devoted to the analysis, justification, and implementation of ecological marketing strategies as a tool for ensuring the sustainable development of enterprises in the modern market. The context of environmental challenges and opportunities in business has been studied. Consumer expectations regarding environmental responsibility and sustainability of enterprises are growing, which requires companies to pay attention to the implementation of environmental aspects in their strategy. The fundamental principles of the formation of ecological marketing strategies have been identified. These include the implementation of sustainable resource efficiency, reducing the impact on the environment, as well as actively informing consumers about the sustainable nature of products and services. The methods and tools that help enterprises implement their environmental strategies are defined. Among them are environmental audits, product certification, development of new ecological products, use of green technologies, etc. The advantages and challenges of the formation of ecological marketing strategies are analyzed on the example of enterprises that have already successfully implemented such approaches. It was found that environmental strategies contribute to increasing consumer loyalty, increasing competitiveness, and creating the image of a socially responsible brand. However, there are challenges on the road to success, such as the high costs of green technology and staff training, which require management solutions. It is essential to ensure the adaptation of the strategy to a specific industry and consumer audience, to interact with environmental organizations and state institutions actively, as well as to regularly monitor and evaluate the results of the implementation of environmental strategies. In general, the formation of ecological marketing strategies for the development of enterprises in the market of goods and services plays a crucial role in ensuring sustainable development and preservation of the environment. The study reveals a comprehensive approach to this problem and provides recommendations for effectively implementing environmental marketing strategies in practice. Keywords: ecological strategy, ecological marketing, the market of ecological goods and services, sustainable development

Generating positive financial result from IP exploitation

Generating positive financial result from IP exploitation