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Fundamentals of financial management

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Abstract

The tutorial describes the basic concepts and concepts of financial management. The fundamentals of financial mathematics, methods of accounting for risk factors in financial calculations. The methods of financial analysis in the financial management of the enterprise, as well as the use of methods of financial planning, forecasting and formation of the financial strategy of the enterprise. The manual contains two sections. For each topic are control questions and tasks for self-test. Prepared on the basis of the Federal state educational standard of higher education in the specialty 38.05.01 "Economic security (level of specialization)".
... The theoretical basis of financial resources, especially financial resources, and financial resources corporations have found a place among the scientific literature. The theory of financial resources presented in works of foreign and Russian authors, for example, the implementation of the strategy of companies received a scientific theoretical analysis and widely presented in works of such foreign authors as R. Holt (1993) Hicks (1988), as well as Russian and domestic, such as Hominich I. (1998), A. Kovaleva (1998), G. Polyak (1999, D. Moliakov (1997), Safronov (1999) & Belolipetskii V. (1998. To the development problems of forming the general strategy of the organization contributed to the fundamental works of such foreign scientists as B. Karloff (1991), G. Kleiner (2001, M. Meskon (1992) & Ansoff I. (1989). ...
... The theory of financial resources presented in the works of foreign and Russian authors, for example, the implementation of the strategy of companies received a scientific theoretical analysis and is widely presented in works of such foreign authors as R. Holt (1993), F. Cheng (2000) Sheremet (2006) have dedicated their works to the basic research in the field of financial management. The problem of strategic financial management is still quite relevant. ...
... For his concept, we could consider the corporation of Kazakhstan and to characterize them from the side of theory. R. Holt (1993), F. Cheng (2000) & Hominich I. (1998) investigated just the same, the implementation of financial resources in enterprises. They are the first who have thoroughly been able to investigate this issue. ...
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The article examines the policy of corporate enterprises, focusing on the most important unit of any financial business. It examines the general characteristics and features of the Kazakh corporate enterprises. It analyzes the installation and implementation of the strategy management of financial resources corporation of Kazakhstan. The author describes the general trends in the future activities of the financial system of corporations on the example of the successful experience of foreign corporations. Basic research methods include a complex of various analyses, statistical methods, theoretical and empirical methods and explore a variety of literature. The result of the study provides: the corporation of the Kazakh Republic are competitive in the domestic market, and the strategy for managing financial resources addresses the survival and making a good profit, since profit is the ultimate performance of the enterprises. Nevertheless, profit should not be considered as the only indicator of a promising strategy for managing the finances. A comparative analysis with foreign corporations proves that Kazakhstan needs reforming the management strategies, first of all, to attract the investors in the global financial market.
... Value of the Firm as mentioned by Brigham & Houston (2019) stating that the main purpose of the go-public firms is to maximize value for the long term by maximizing the shareholders' prosperity . It includes a high assessment from the external about the firm's assets and the growth of the stock market. ...
... With the government policy support, it will attract the investors' interest for investment because the manufacturing industry development prospect is very promising in the future. This is very related to the Value of the Firm theory as stated by Brigham & Houston (2019) saying that to maximize the shareholders' prosperity is the way to maximize the value of a firm in the long term as the main purpose of the go-public firms. ...
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The purposes of this research were to understand the profitability performance and its influencing factors based on DuPont Analysis and the effect toward the value of the firm. As a causality research, the sample data involved were 20 non-banking and finance companies as listed on LQ-45 of Indonesian Stock Exchange (IDX) years of 2014-2018, which could be classified into two types of industry; manufacture and non-manufacture sectors. The research’s quantitative design as a systematic approach of the relation among the variables focusing on the hypothesis testing done by data analysis tools using GLS Regression test of panel data. Profitability determinants of net profit margin, total assets turnover and financial leverage multiplier showed the result of positive and significant effect toward ROE (return on equity), while growth sales ratio showed the negative and significant effect. In terms of the relationship toward value of firm, the ROE and industry types were proven to have significant positive contributions. This implied that the management must be more efficient and effective in managing the company operational activities and minimizing the operational costs and other costs, both in the assets and debt usage to have maximal product results, to increase sales, net income, profit rate and return of equity where they will affect the increasing of investors’ and the market’s trust toward the firms since the increasing of return on equity for the owners and the shareholders. The different characteristics, traits and features of the industry’s types resulted in the different use of strategies in managing the firms’ operational activities. These all affected the increasing value of the firm.
... As defined by the American Accounting Association, the environmental audit is a systematic process regarding the certification of economic actions, in order to evaluate the degree of compliance with these statements with predetermined criteria, as well as to communicate the results to interested parties [25]. Another definition that we consider to be representative of the financial audit is that "the financial audit consists of collecting audit evidence about an entity's financial statements and using these evidence to assess their compliance with pre-established criteria" [19]. ...
... The problem of optimizing the financial structure of the company is considered a fundamental work of leading foreign and domestic scholars, such as Sharp et al. [2] Brigham and Erhard [3], Blank [4], Lukasiewicz [5]. Based on the research in this area and the specifics of a power generating industry, an optimization model of the investment program financing power generation company. ...
Conference Paper
Attracting investment in the Russian energy industry is a necessary condition for improving the competitiveness of energy companies. It is important to create an investment budget financing structure, in which the weighted average cost of funds will be minimal, and the amount of resources drawn from each source to fit the current market trends and financial sustainability criteria power generation company. This paper discusses problems of investment financing optimization of a power generation company, a proposed optimization model of investment financing and calculated parameters for the optimization of the investment program in the example of a Russian power generating company. Keywords: power generation company, investment, optimization model, financial sustainability, common stocks, preferred stocks, loans, bonds, project financing funds, leasing.
... Some aspects of corporate governance and valuation are considered by domestic scientists in the study of the issue: improving the mechanism of corporate relations A. Voronkova [17], V. Yevtushevsky [18], G. Kozachenko [19]; building the organizational structure of corporate governance and management systems O. Kuzmin [20], H. Nazarova [21][22], Ye. Palyha [23]; evaluation of the effectiveness of corporate sector enterprises A. Achkasov [24], I. Blank [25], O. Vakulchik [26], G. Volynsky [27][28][29], O. Ivanilov [30], V. Lushkin [31], M. Chumachenko [32]; cost management of enterprises in terms of their adaptation to the transformation processes of the transition period O. Mendrulom [33,34], R. Tianom [35]; system development of organizational and economic mechanism of corporate governance, creation of systems to support management decisions, investment analysis and mathematical research methods -V. Anin [36], A. Krushevsky [37][38][39], V. Onishchenko [40], O. Respected [41,42], V. Torkatyuk [43][44][45][46], V. Fedorenko [47]; of corporate management of financial and construction groups in the investment process -S. ...
Chapter
Corporate governance is the most attractive research topic due to its multi-vector and constant relevance. Representing a certain contradiction of understanding and causing disputes about belonging to certain knowledge (economic, social, psychological or legal sciences), corporate governance is to some extent investigated by each of them. Despite extensive research previously conducted by scientists and experts, problems related to corporate governance are constantly generated by modernity and again and again arouse lively interest. The authors of the monograph try to solve many problems in the field of corporate governance by studying the managerial, financial and psychological aspects. Management aspects include a comparative analysis of existing models and categorical apparatus of corporate governance; establishing the peculiarities of the development of corporate governance in corporations and in general; formation of global infrastructure in the context of social, economic and environmental intentions. Due to the study of financial aspects of corporate governance, the authors of the monograph proposed the institutional infrastructure for the formation of financial support for corporations; the factors of development of digital transformation of banking and transport infrastructure of Ukraine are singled out; proposed to use "green" finance as a marker of modern corporate governance. An integral part of corporate governance is the psychological climate, which directly affects the well-being of corporations and their employees through a variety of activities, including training. We hope that our monograph will help to look at corporate governance comprehensively, covering its various aspects. The materials of the monograph can be useful for economists, managers, financiers, practitioners, scientists, doctoral students, graduate students, students and all others interested in corporate governance.
... The subject of interest in finance as a science is mainly the financial motion, and above all, in the banking system, money circulation between various economic entities and their groups in the form of settlements, savings and reserves. 9 The task of finance is to adjust the financial resources available to certain categories of business entities. 10 In the Russian scientific doctrine, financial science was also formed in the second half of the 19th century, in 1841 the first textbook on financial science -"Theory of Finance" was prepared and published in the Russian language. ...
... Stock Dividend (SD) has an influence on stock price and may show a positive or negative reflection. Horne, Wachowicz [29] and Kuhlemeyer [30] described the impact of SD by getting a negative relationship between the number of shares and share prices and EPS without affecting the firm"s value. ...
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Commercial organizations in Bangladesh are experiencing rivalry among them because of economic struggle globally and attempting to remain competitive in these changeable economic surroundings. This paper intends to analyze the impact of dividend policy on the market price of stock in Bangladesh. The numbers of statistic community are 330 companies in Dhaka Stock Exchange. All 10 companies belong to the Food & Allied, Ceramics and Cement industry listed at DSE index are included as the sample for a phase from 2008 to 2017. In this paper, Fixed Effect Model along with Random Effect Model has been used to estimate outcomes. Both Models are exercised on panel data for explaining the association between dividend payments and share prices after adjusting several variables including Earnings per Share, logarithm value of Profit after Tax, Growth of Asset and Dividend Payout Ratio. The study also checked both the Models and found Random Effect Model is more significant than Fixed Effect Model. Afterward, this paper applied the multicollinearity test to determine is there any correlation among the variables and found no multicollinearity. This paper found a weak form market exists in Bangladesh and investors choose stock dividend more than the cash dividend.
... Investment opportunity set is the extent or magnitude of the company's opportunities in terms of investment. Keown (2010) reports that when the investment opportunities of companies increase, the dividend payout ratio must decrease. This indicates that there is an inverse relationship between dividend policy and investment opportunities. ...
... As defined by the American Accounting Association, the environmental audit is a systematic process regarding the certification of economic actions, in order to evaluate the degree of compliance with these statements with predetermined criteria, as well as to communicate the results to interested parties [25]. Another definition that we consider to be representative of the financial audit is that "the financial audit consists of collecting audit evidence about an entity's financial statements and using these evidence to assess their compliance with pre-established criteria" [19]. ...
... A) Profitability: The expected rate of return of any investment project must be greater than the required rate of return in the capital market so that the economic project can be considered profitable, as the profitability of the company depends on the level of sales and the returns of its investment projects, and this is important in determining the company's borrowing ratio. As the profitability of the company increases, its reliance on borrowing decreases and thus plays a major role in the decision to choose the appropriate capital structure (Hanafi, 2004). B) Repayment capacity: In the sense that the company is able to pay the loan amount and interest at the maturity date of the loan, by comparing the expected cash flow of the project for the coming years with the loan charge, as the company's ability to pay its financial liabilities affects its good performance and low risk of bankruptcy. ...
Article
The purpose of this study was to identify the effect of the capital structure as a percentage of total liabilities to total assets on the financial performance of the Jordanian industrial companies listed on the Amman Stock Exchange for the period 2012-2015.The study population included all the Jordanian general industrial companies listed on the Amman Stock Exchange. The sample of the study included 10 industrial companies listed on the Amman Stock Exchange. The linear regression analysis was used to test the relationship between variables using the ordinary least squares method (OLS).The results showed that there is a positive significant impact on the capital structure of the industrial shareholding companies listed in the Amman Stock Exchange as measured by the ratio of equity to total assets, return on equity and return on assets and net earnings per share as an indicator of financial performance.The results also showed a negative significant impact on the capital structure of industrial shareholding companies listed on the Amman Stock Exchange as measured by total liabilities to total assets, return on equity and return on assets as an indicator of financial performance, and net earnings per share as an indicator of the financial performance indicators.
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The scientific basis of the organization of construction production involves the development of innovative models and methods of construction planning. The article studies the issues of perspective planning. After several years of research, the authors propose a new approach to forecasting and long-term planning. The authors consider the construction as a holistic design and realistic complex. As defined by the Bank of World, a project is a set of interrelated activities designed to achieve objectives within a given time frame and budget, with clearly defined objectives. In the article the mathematical model allowing to plan construction production for long term and to operate it is offered. The proposed method makes it possible to effectively and ergonomically solve the problems of construction plan and construction management.
Chapter
The problem which this research is dedicated to prepare a methodology of accounting policy formation of agricultural business subjects which would allow the financial information to best meet the interests of potential investors. The idea of the research has emerged from choosing possibilities provided in the regulations, which form the financial accountancy of agricultural business subjects while evaluating the assets, liabilities, revenue and expenses of agricultural business subject and the asymmetry of provided information, which occur due to these reasons. The accounting policy of agricultural business subjects must be formed based on agency theory, which demands to satisfy the interests of users who employ such information, and signalling theory, which emphasizes the reliability of the information. Factors influencing the formation of accounting policy of agricultural business subjects are the following: chosen view towards the accounting policy; the specifics of activities of agricultural business subjects; possibilities to choose from accounting methods given in accounting regulations; the demands of investors in regards to the financial information in order the investors could make correct and timely management and investment decisions. The model, which reflects the inter-relations between factors, which influence the accounting policy formation of the agricultural business subjects, was prepared.
Article
In the conditions of reformatting and transformation of the world economy, as well as the aggravation of the international situation, there is an objective need to form a model for assessing the economic security of an individual, taking into account both economic factors and other aspects of social life. As the object of article, the author considers relationships that influence the economic security of vital interests of the individual. The subject is indicators of its condition and performance on which its survival and sustainability depend, and tasks are to study the raw data for their formation. The aim of the article is to develop a model of economic security of the individual. As a result, the author has formed a model of assessment of economic security of the person, which takes into account assessment of income, expenses, debt, property, family, education, as well as environmental impact, that is, not only its financial and economic situation, but also socio-cultural traits. The relevance of the study, conducted using logical and mathematical methods is due to the possibility of applying its results for the rapid identification of places of social tension and the adoption of the necessary measures, and to obtain information on the presence or absence of threats to a particular person’s economic security in order to make certain management decisions.
Article
The article considers the anti-crisis stability of the potential of break-even development and its resource support in agribusiness. The necessity of a synergetic approach to estimating the dynamic flow of resources capable of generating own sources of financing to activate the target parameters of crisis stability of break-even development potential and the development of an alternative scenario of self-financing of the production and financial cycle to stimulate economic growth of agribusiness is proved. The reproductive process of resource support of anti-crisis stability of the potential for safe development of agribusiness enterprises is substantiated. The model of estimation of target parameters of anti-crisis stability of potential of unprofitable development of agrarian business and a matrix of its point estimation at a choice of the alternative scenario of self-financing is presented. Scenarios of the flow of resource support of anti-crisis stability of the potential of unprofitable development of the agribusiness enterprise are developed. An indicator of the level of anti-crisis stability of the break-even development potential according to the determined target parameters of self-financing is offered. The dynamics of anti-crisis factor load on the stability of the potential of break-even development of agribusiness enterprises on average in one region of the Steppe zone of Ukraine by its territorial location is analyzed. Cluster analysis was used to assess the elements of the qualitative system-resource component of anti-crisis stability of the potential of break-even development with the separation of types of agribusiness enterprises in the regions of the Steppe zone of Ukraine with different structure of current assets. The forecast level of resource support according to the quantitative component of anti-crisis stability of the potential of break-even development on average in the regions of the Steppe zone of Ukraine and per one agribusiness enterprise of the region is determined. The forecast range of limits of target parameters of self-financing and their influence on the level of anti-crisis stability of potential of unprofitable development of agribusiness enterprises on the average on one region of the Steppe zone is presented
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In modern conditions, the search for opportunities to strengthen the financial position and increase financial stability becomes a priority task of business entities, which is solved by means of a comprehensive systematic analysis of the enterprise. The purpose of the paper is to analyze the existing methodological approaches to assess the liquidity and solvency of an agricultural enterprise and to determine the directions of their improvement. Solvency is the presence in the enterprise of funds for repayment by them in due time and in full of their debt obligations arising from credit and other transactions of a monetary nature. Liquidity is a way to maintain solvency. Liquidity of an enterprise includes the concepts of liquidity and balance sheet liquidity. The article summarizes the classification of assets and liabilities of the balance sheet and defines the conditions of its absolute liquidity. The method of estimation of solvency and liquidity indicators is presented. The main factors, that influence the on the level of solvency of an agricultural enterprise, are summarized: nature of the enterprise activity, stock status, terms of settlements with debtors, state of accounts receivable. Areas of increase of solvency are distinguished: ensuring balance of assets and liabilities, increase of sales volumes and reduction of expenses, coordination of plans of production and sale, ensuring of uninterrupted work of the enterprise, attraction of long-term loans for financing of capital expenses, rational management of available financial resources, including determination of optimal volumes of production stocks control over the shipment of products, compilation of receivables, management of receivables, the collection of receivables in the next period, the use of modern forms of refinancing.
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The 2014 changes in the Tax Code expanded the institute of cadastral valuation from land to capital construction facilities. But this also gave rise to a new wave of questions about the reliability of the cadastral assessment. One of the stumbling blocks was the accounting (exclusion) of land from the cost of the capital construction facility. This article is devoted to methodological substantiation of estimation and accounting of land value in a single real estate object in conditions of lack of initial information. In the article, the authors consider the share of the land plot in the value of a single real estate object as a result of various pricing factors. As a methodological basis for calculating the share of land in a single real estate object, the regression analysis method was used. The results of the present study can be used in cadastral valuation practices as well as market assessments (including forensic examinations) prepared to challenge the results of cadastral valuation. In addition, the authors made a number of proposals for the direction of further improvement of the proposed approach.
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In the modern world, in the conditions of economic instability and fierce competition, companies need to have effective tools that can provide an opportunity to study the current financial condition, compare cash inflows and outflows, approve the right decisions that contribute to the subsequent formation and development of the enterprise, as well as optimize management costs. In a company, such an important tool for financial planning, as well as control, is budgeting.This article discusses the tasks, goals, methods, disadvantages and advantages of budgeting, illustrates the full continuous cycle of budget management and the stages of development of the concept of budgeting. In addition to the theoretical aspects, the article considers the empirical and methodological aspects. The purpose of this article is to generalize the theoretical provisions and develop the organizational and methodological aspects of the application of budgeting and the impact of effective budgeting on the development of the overall company. The article uses complex and systematic approaches to the processes and phenomena under study, which is achieved through the methods of analysis and synthesis, review and collection of information, statistical analysis, scientific abstraction and visualization.In the conclusion of the article, the conclusions are made, that a properly formed concept of budgeting, improvement of methods and elements of the budget process will make it possible to manage the capital, as well as a single commercial, and the company as a whole, establishing the sequence of business types, terms and trends of restructuring. This will allow the owners of companies to adapt their business in time to all possible changes in market conditions.
Финансовые расчеты в коммерческих сделках / Л.Г. Батракова. -Москва: Издательская корпорация «Логос
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Батракова, Л.Г. Финансовые расчеты в коммерческих сделках / Л.Г. Батракова. -Москва: Издательская корпорация «Логос», 2001. -120 с.
Математика финансового менеджмента /Т.В.Ващенко. -Москва: Перспектива
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Ващенко, Т.В. Математика финансового менеджмента /Т.В.Ващенко. -Москва: Перспектива, 1996. -82 с.
Юридическая техника, тактика, стратегия и технология (к вопросу о соотношении) // Проблемы юридической техники: Сборник статей / Под ред
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Карташов, В. Н. Юридическая техника, тактика, стратегия и технология (к вопросу о соотношении) // Проблемы юридической техники: Сборник статей / Под ред. В.М. Баранова
Введение в финансовый менеджмент / В.В. Ковалев. -Москва: Финансы и статистика
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Анализ операций с ценными бумагами с MicrosoftExcel
  • И Я Лукасевич
Лукасевич, И.Я. Анализ операций с ценными бумагами с MicrosoftExcel [электронный ресурс] / Режим доступа:http://www.cfin.ru/finanalysis/inexcel/lit.shtml
Практикум по финансовому менеджменту: технология финансовых расчетов с процентами: учебное пособие / В.А. Морошкин, А.Л. Ломакин. -2-е изд., перераб. и доп. -Москва: Финансы и статистика
  • В А Морошкин
Морошкин, В.А. Практикум по финансовому менеджменту: технология финансовых расчетов с процентами: учебное пособие / В.А. Морошкин, А.Л. Ломакин. -2-е изд., перераб. и доп. -Москва: Финансы и статистика; ИНФРА-М, 2010. -120 с.
Анализ хозяйственной деятельности: учеб.пособие / Г.В. Савицкая. -6-е изд., испр. и доп
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Савицкая, Г.В. Анализ хозяйственной деятельности: учеб.пособие / Г.В. Савицкая. -6-е изд., испр. и доп. -М.: ИФРА-М, 2017. -284 с.
Что такое эффективное управление дебиторской задолженностью // Финансовый директор
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Чадин,С. Что такое эффективное управление дебиторской задолженностью // Финансовый директор. -25 июля 2017 [электронный ресурс] Режим доступа: https://fd.ru/articles/52113-sqk-15-m9-effektivnoe-upravleniedebitorskoy-zadoljennostyu
Significant Contributions to Finance Literature //Financial Management.1981. 10thAnniversaryIssue
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Cooley P.L., Heck J.L. Significant Contributions to Finance Literature //Financial Management.1981. 10thAnniversaryIssue. P. 23-33
Какая динамика этого показателя считается желательно для предприятия? 15. Приведите формулу для расчета коэффициента инкассации. выявить причины роста уровня производственных запасов, готовой продукции, товаров, а такженезавершенного производства
  • Опишите
Опишите показатель оборачиваемости задолженности. Какая динамика этого показателя считается желательно для предприятия? 15. Приведите формулу для расчета коэффициента инкассации. выявить причины роста уровня производственных запасов, готовой продукции, товаров, а такженезавершенного производства. Контрольные вопросы и задания для самостоятельного решения