Profit reinvestment: main motives supporting financial decisions
Profit reinvestment: main motives supporting financial decisions
Author(s): Pavla Pokorná, Jarmila SEBESTOVASubject(s): Business Economy / Management, Financial Markets, Accounting - Business Administration
Published by: Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Keywords: reinvestment; profit; motivation to reinvest;
Summary/Abstract: Reinvestment decisions are based on basic the economic literacy of entrepreneurs because they do not want to affect future liquidity or development activities. The main goal of the article is to suggest a simple decision tree model to describe profit reinvestments in a general way based on results of a primary pilot study (128 interviews), where reinvestment behaviour is affected by specific factors like risk taking, competitive advantage or business experience. After that a decision making tree is suggested to explain the process of reinvestment as determined by the manager.
Journal: Financial Internet Quarterly
- Issue Year: 15/2019
- Issue No: 4
- Page Range: 34-43
- Page Count: 10
- Language: English
