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Професійний розвиток персоналу як передумова підвищення рівня продуктивності праці

Професійний розвиток персоналу як передумова підвищення рівня продуктивності праці

Author(s): Alla Zlenko,Denys Miroshnichenko / Language(s): Ukrainian Issue: 24/2015

The article deals with the role and the necessity of professional development and training, as well as an analysis of the major trends and forms of professional education and staff development. The subject of the research is staff professional education.The purpose of this article is to reveal the main directions, forms and methods of staff professional development, organization of staff training.The results of the work may find practical applications in any enterprise, organization or institution where the management cares about staff training including the interests of the company at a rapid filling of vacancies, cost savings, which are related to the preparation of workers, as well as workers' interests - to get a complete professional training.Nowadays, the employee must possess such qualities, as strategic thinking, entrepreneurship, wide erudition, high culture. Today there is a requirement of continuous staff development, that means activities which promote full disclosure of personal potential of employees. These may be individual or group activities, conducted in the work or any special place, or may be focused on the development of general or specific skills.The system of staff development must be flexible, able to change the content, methods and organizational forms according to the needs of production and the situation that composed in the labor market. That’s why, HR should focus their efforts on solving such problems as development strategy for the formation of qualified staff; identifying training needs of workers in the context of professions and occupations;choice of forms and methods of professional development; selection of program-methodical and material-technical support of the learning process as an important condition for its quality; financial support for all types of training in the right quantity.Staff training can solve the main problems in the interests of the organization - improving the efficiency and quality of work, and in the interests of people – increasing the quality of life, creating the opportunity to realize their abilities as well. The employee becomes competitive in the labor market. Therefore, at modern stage the priority for organizations are tasks of ensuring competitive staff training. Its important qualities are:flexibility, mobility, training and high cultural and technical level, the ability quickly to increase your knowledge. The management, HR have a wide arsenal of forms, methods and means of teaching staff, the choice of which depends on the strategic tasks of staff development, understanding of the contents of the process, efficiency of using its components.

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Управління вартістю: сучасні інструменти оцінки ефективності інвестиційного проекту девелопера

Управління вартістю: сучасні інструменти оцінки ефективності інвестиційного проекту девелопера

Author(s): Olga Petrash / Language(s): Ukrainian Issue: 23/2014

The purpose of the article is scientific substantiation of the possibility to use effectively in the national practice modern instrumentsand models of the company (developer) value management in order to estimate effectiveness of the investment project of thecompany. The object of the research is Modern instruments of estimation of effective enterprise management within conception ofvalue-based management. Having analyzed, systematized and generalized of many scientists’ works we have concluded thatresearches of conceptual approaches and technologies of enterprise cost estimation are still essential. In this results of analysis ofmodern approaches to value-based company management were proposed; correlation between goals and approaches to estimationof company value was traced; principles of organization of system of indicators, which outline effectiveness of enterprise operationwere defined. Possible ways of EVA criteria usage for estimation of effectiveness of enterprise financial and business operationmanagement were reasoned. On the basis of review of modern literature sources related to this issue, main approaches todistinguishing groups of factors of costs, depending on the level of cost assessment, place of origin and possibility of management,were determined. As a result of research classification of native and foreign scientists’ approaches regarding differentiation of costfactors on the basis of financial and nonfinancial criteria was structured and consolidated. It was justified that complex managementof divergent factors will enable to apply value- based management system for operation of native enterprises especially when theyundergo innovative changes, which are the important lever of enterprise value formation and are often considered to be nonfinancial(quality) factors. We have proposed to use the integral index, such as their combination (for example EVA,SVA and CFROI ), forinvest project analyses of the developer for the further comparison of results. Perspective of the further investigations of this problemis developing of scientific-methodic instrument, which will enable to consider overviewed factors for making up decisions in thesystem of cost-oriented enterprise management.

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Прогнозування обсягу реалізованої інноваційної продукції із застосуванням екстраполяційних методів та експертних оцінок

Прогнозування обсягу реалізованої інноваційної продукції із застосуванням екстраполяційних методів та експертних оцінок

Author(s): Zoryna Yurynets,Rostyslav Yurynets / Language(s): Ukrainian Issue: 23/2014

The subject of the work is to analyze the results of enterprises innovative activity in Ukraine. The aim is to implement a forecasting indicator - volume of innovative products sales in Ukraine and to obtain the results of the forecast. This will contribute to the development of effective innovation strategies, their implementation in practice of the enterprises. Methodology of the work. The article used the adaptive prediction methods and expert opinions. Results. Identified the need to perform time series forecasting through a combination of statistical methods and expert judgment. Especially important is the combination when there are sharp changes in the economy through unforeseen events (crises, changes in the political or economic policy, etc). Using of expert judgment improves the accuracy of the forecast. During the combination of extrapolation estimates and expert projections it is necessary to consider different aspects. For example, the credibility for the estimates are different, the trust may change when changing the value of the bias. The most important thing in the combination is that the credibility of the combined forecast should be at maximum level. First of all, the solution of this problem is associated with the formulation of extreme problems. It should be possible to build an adaptive mechanism, which will give the opportunity to have the combined projected trajectory together with the required property. Analysis of the calculation results shows that the estimation of prognosis depends on the level of trust. If  = 0,85, predictive estimate of transient process quickly get trends, which are provided by the experts, and if = 0,95, extrapolating trend dominates in the combined trajectory. The prognosis estimations depend on the  . Therefore, the special attention should be paid to determining the value of . Scope of the results: the management of enterprises, the formation and implementation of development strategies, the formation of the major directions of the state innovation policy. Conclusions. In the future we can expect the reduction in the amount of innovative products sales. Adaptability combined model allows to effectively implement the procedure for obtaining prognosis estimations for future periods in which the trends change is expected. For the formation of an effective innovation strategies managers need to know the results of the forecast. It will give the opportunity to implement strategies in the practice of enterprises. The results of the forecast will contribute to the creation of effective innovation strategies and their implementation in the activity of enterprises. The forecasting system must be one of the most important places during the creation of measures to implement the strategy.

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Сущность и методы совершенствования организационно–управленческих инноваций на предприятиях республики Молдова

Сущность и методы совершенствования организационно–управленческих инноваций на предприятиях республики Молдова

Author(s): Alla Levitskaya,Nadezhda Diakon / Language(s): Russian Issue: 21/2013

The article characterizes the systemic approaches to definition, describes sub–systems of organizational and managerial innovations, analyzes the condition of these innovations on categories and represents methods of developing and implementing the organizational innovations by enterprises of Republic of Moldova. Innovative process has complex structure and covers different components of administrative activities, therefore the mechanism of developing and implementing organizational innovations shall be agreed with all the other processes of the company.Aim of the article is to characterize the organizational and managerial innovations and the methods of their implementation and development by the companies of Republic of Moldova.Organization and implementation of managerial innovations presupposes solving the problem of methodological support of innovative process. Different methods and instruments are applied in the process of development and implementation of managerial innovations: benchmarking, re–engineering of business processes, methodology of structural analysis and projecting SADT and project method. Beside the methods of preparing the project of development and implementation, special attention shall be paid to management of the process of implementing innovations. This work shall be based on the scientific methods having proved their effectiveness in similar situations. Generation of managerial innovations is of great significance to the commercial organizations as the instrument of increasing competitiveness and eliminating dependence from non–coincidence of life cycles of goods, works and services. To successfully implement organizational innovations, their initiators shall forecast the emergence of different categories of resistance to innovations, have sufficient authorities for their leveling and master the methodology of applying available instruments and methods in the process of reforming different management systems.

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Управління вартістю компанії в умовах економічної нестабільності

Управління вартістю компанії в умовах економічної нестабільності

Author(s): Nataliya Mamontova / Language(s): Ukrainian Issue: 21/2013

Theoretical and methodological approaches to determining the value of company in new conditions are generalized. Condition andproblems of the Ukrainian companies from the point of view of expediency of value management implementation are analyzed. Aimof the article is to describe author’s generalizations of theoretical and methodological aspects of managing company value.The following conclusions and generalizations are provided on the basis of research.Result of value management shall be determined first of all by the degree of achieving the declared purposes and performing thetasks before the value management system. Criteria of achieving purposes and performing tasks may be economical and non–economical what proves interdisciplinary character of the problem. With the exception of increase of absolute indicators, changes inthe structure of company capital shall be taken into account. In post–industrial economy one of such criteria is the priority ofincreasing value of intellectual capital. It is important to implement evaluation taking into account interests of different groups ofshareholders, management and staff. Further definite methodologies of evaluating effectiveness of value management shall beproposed taking into account definite peculiarities of company functioning.In the new conditions guarantee of effective corporate management is increase on value indicators of the company. Value of thecompany is its piece, determined on the basis of value of material and non–material assets, as well as expectations concerning theability to bring economic effects in future. One of the most widely spread concepts oriented at the maximization of market value ofcompany is the so called concept of economic added value (EVA), which resulted from the evolutional development of paradigm fordetermining integrated evaluative indicators of business effectiveness. The strategy for maximizing the company value shall bedirected at the grounded increase based on positive dynamics of definite market and internal factors.

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Концептуальные подходы к организации и проведению финансовой диагностики субъектов малого и среднего предпринимательства

Концептуальные подходы к организации и проведению финансовой диагностики субъектов малого и среднего предпринимательства

Author(s): Vladimir Khankevich / Language(s): Russian Issue: 21/2013

Small and medium business constitutes the base for the development of all the branches of economy. World practice proves that the considerable reserves of increasing production effectiveness are connected with the restructuring of state enterprises and development of business. Under such circumstances special attention should be paid to activating cost levers influencing the results of all the production participants, as well as financial diagnostics of activities of small and medium business. Novelty of research lies in the development of financial diagnostics methodology for the small and medium business. Object of research: financial activities of small and medium business. Aim of research: to substantiate conceptual approaches to the organization and performance of financial diagnostics of subjects of small and medium business. Tasks of research: to analyze the tendencies of development of small and medium business in the Republic of Belarus; to generalize approaches to the performance of financial diagnostics of small and medium business; to develop complex approach to the performance of financial diagnostics. Methods of research: the main methods include economic analysis and synthesis, comparison and generalization. Methodology: substantiation of theoretical and methodological basis for the performance of financial diagnostics, main approaches to the organization and performance of financial diagnostics of small and medium business subjects; works of the local and foreign economists and practitioners on the object of research. Results of research: absence of practical development, comprehensively analyzing the methods of financial diagnostics, permitted to substantiate: the main principles of organization and performance of financial diagnostics; obligatory preconditions for the performance of financial diagnostics; requirements to the information support of financial diagnostics; theoretical model for the organization of financial diagnostics.

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Основні аспекти управління витратами на підприємствах України

Основні аспекти управління витратами на підприємствах України

Author(s): Svetlana Derevjanko / Language(s): Ukrainian Issue: 20/2013

In given article problems of introduction at the enterprises of Ukraine of cost management and a way of their decisionare considered examined.

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Современные тенденции развития систем оплаты труда в организациях Республики Беларусь

Современные тенденции развития систем оплаты труда в организациях Республики Беларусь

Author(s): Elena Romanova / Language(s): Russian Issue: 20/2013

Article is devoted to consideration of tendencies of development of systems of the compensation applied in theorganizations of Republic of Belarus since 1993 to the present. In it the preconditions which have caused need ofmodernization of mechanisms of the organization and state regulation of compensation in the republic are formulated,the reasons constraining distribution of flexible systems in Republic of Belarus, and also measures which will promotegrowth of interest of employers regarding transformation of applied tariff systems in the flexible.

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Методологические основы построения гибких структур организаций

Методологические основы построения гибких структур организаций

Author(s): Vladimir Gerasenko / Language(s): Russian Issue: 31/2016

The article describes the methodology for the flexible structures of organizations. Given UK-rupanyaalgorithm for a flexible structure of enterprise management. Describes the main strategic elements of organizational structures of management of the organization. The basic model of organizational structure of marketing activities of the organization.Purpose: optimal governance structures for the organizations that achieve maximum socio-economic efficiency of their functioning.Methodology: the survey instruments is based on system-oriented approach methods: structuring of objectives, analysis, comparisons and analogies, organizational modeling.The results of the work: theoretical basis of building flexible structures of organizations; the proposed high level algorithm for the construction of flexible structures control organizations that take into account the main factors that cause the need for the modified-lication of the current governance structure; reflects methodological approaches to the selection of systemic and local problems in the organizational structure governance (ESG)issues; flexibility of organizational structures.

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Інформаційний маркетинг в контексті розвитку інформаційних технологій

Інформаційний маркетинг в контексті розвитку інформаційних технологій

Author(s): Pavlo Drok / Language(s): Ukrainian Issue: 31/2016

The subject of research is theoretical and practical issues of development and implementation of marketing information as a tool to influence economic development.The study aims to determine the details of the national information marketing modern conditions of education and study areas of improvement.Research methods. The paper used a set of scientific methods and approaches, including systemic,structural, comparative, factorial, allowing realize conceptual integrity of the study.The results of the work. The features information implementation of national education policy. A priority directions of improvement of information marketing the medium term.Range of application results. The sphere of education.Conclusions. Information Marketing sets and continually supports not only trade but also exchange of information between potential participants of market relations. Need it the better, the more manufacturers of similar products opposed to those in need in her subjects. Typically, before the conclusion of the agreement, the employer is trying to explore the smallest detail nuances consumer preferences and buyer, in turn, operational and economic characteristics of the proposed goods. With channel marketing communications network information about the state of supply and demand are the property of both parties. The act of sale is only if the producer and the buyer agree on a mutually beneficial contract. The result of the agreement - the transition from producer to consumer rights to use goods in exchange for other goods or money.

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Моделювання як метод облікового синтезу і аналізуекономічної ефективності використання ресурсів

Моделювання як метод облікового синтезу і аналізуекономічної ефективності використання ресурсів

Author(s): Anatolii Lysetskyi,Olexii Burlakov,Galyna Chaban / Language(s): Ukrainian Issue: 31/2016

Subject of work: modeling business processes by means of information systems in terms of enhancing the quality requirements of the enterprises, farms and cooperatives. Objective: To develop and justify the method of accounting (information fusion) and cost-effectiveness analysis of business systems using regulatory methods. Methodology: The methodology used in carrying instruments accounting and economic-mathematical modeling. Results: The model developed and «resource - product» as a tool of economic analysis. Range of application of results: economic management systems in agriculture and farming. Conclusions: The proposed model synthesis business operations and efficiency analysis of economic systems.

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Генезис сутності та трактування поняття конкурентоспроможності підприємства

Генезис сутності та трактування поняття конкурентоспроможності підприємства

Author(s): Inna Klimenko / Language(s): Ukrainian Issue: 31/2016

The subject of research. The combination of theoretical and methodological principles for the definition of the concept of the enterprise’s competitive ability.The purpose of research is to study the essence of the concept of competition and the enterprise’s competitive ability.Methods of research. The following methods were used: a system, comparison, abstract and logical,correlation and regression analysis, and historical method.Methodology of work is based on the study of contemporary domestic and foreign researches on the definition of the essence of the concept of the enterprise’s competitive ability.The results of work. The essence and importance of the enterprise’s competitive ability was studied in the article. The different views of scientists-economists in the category of «competitive ability of an enterprise» were considered. Practical implications. The theoretical principles, conclusions and recommendations can be used for the formation of modern economic policy and management activity of enterprises.Conclusions. The scientists’ theoretical approaches in understanding of the concept of competition,competitiveness and competitive ability of an enterprise are analysed. The study was allowed to define the hierarchical structuring of competitiveness types and grouping of approaches to understanding the enterprise’s competitive ability.

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Impact of declining interest rates on European primary bond market

Impact of declining interest rates on European primary bond market

Author(s): Robert Verner,Peter Remiáš / Language(s): English Issue: 2.2/2017

The aim of this paper is to examine the growing popularity of debt financing in European based subjects. The development of issued volume was examined on the sample of 9,293 public debt offerings denominated in EUR issued between 30th November 2007 and 30th November 2016 and the impact of declining market interest rates on primary bond market was explored. More than 7.666 trillion EUR of debt were analyzed and the results indicate that despite low interest rates, the volume of issued bonds does not increase over time. Decline of interest rates only compensates slow economic growth as well as increasing global market and political risks.

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CREDIT DERIVATIVES IN BANKING: BENEFITS AND THREATS

CREDIT DERIVATIVES IN BANKING: BENEFITS AND THREATS

Author(s): Anastasiia Petruk,Roman Stadniichuk / Language(s): English Issue: 47/2020

Financial institutions have faced a variety of threats, the main reasons for which are weak lending standards, ineffective risk evaluation of the loan portfolio, lack of attention to economic and other factors that can affect the creditworthiness of bank counterparties. Thus, among various threats, credit risk, caused by lending, remains the main source of problems for commercial banks. However, globalization and liberalization of the global financial system has led to the appearance of other sources, including trade and investment transactions, which are reflected both on the balance sheet and off-balance sheet. Banks are increasingly faced with credit risk in other financial operations – for example, with derivative financial instruments. Effective credit risk management is a critically important component of the comprehensive approach to risk management and the long-term success of a banking organization. The use of financial instruments that allows commercial banks to transfer credit risk to a third party for a fee and, thus, avoid the additional costs for forming reserves, has become one of the ways to prevent negative consequences. However, despite the many advantages associated with the risk hedging, credit derivatives, like other financial innovations, pose additional risks directly related to the application of these instruments. For example, these risks have manifested themselves in the global financial crisis of 2008-2009 and minimized the positive effect of the credit derivatives. This article discusses the advantages and disadvantages of using credit derivatives by commercial banks, shows the need for timely identification of probable risks and the development of effective methods for managing them by both the risk management of the bank and regulators.

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ТЕХНОЛОГІЯ БЛОКЧЕЙНУ: ОСОБЛИВОСТІ, ПЕРСПЕКТИВИ

ТЕХНОЛОГІЯ БЛОКЧЕЙНУ: ОСОБЛИВОСТІ, ПЕРСПЕКТИВИ

Author(s): Liudmyla Girchenko,Ivan Semeniuk,Tetiana Girchenko / Language(s): Ukrainian Issue: 47/2020

The article examines the features of blockchain technology and the construction of its structural elements. It is based on the principle of structuring and working with databases, which was developed by Satoshi Nakomoto in 2008. A feature of his model is the reliability of transactions and the creation of a decentralized register of data accounting and key blocks of information. The article also examines the main types of operation of the blockchain system, from Blockchain 1.0 to the concept of Blockchain 4.0. Given the high level of interest of the world in building reliable information accounting, the blockchain has become an important tool for ensuring reliability both for the financial world and for the wider areas of application considered in the work. The stages of development are characterized and the formation process of blockchain technology on the world market is analysed. The paper presents examples of major cryptocurrencies in the world, which are currently considered the most stable and relevant for investment or settlement. The study shows a tendency to accelerate the emergence of various types of cryptocurrencies developed by the world's largest digital giants, such as Libra 2019 from Facebook, Gram from the most popular messenger Telegram, and many others. The wide range of cryptocurrencies on the market encourages users to increasingly use the blockchain system and increase the turnover of cryptocurrency, because as of 2019 the market value is about 420.5 billion dollars, which is growing every year. The basic principles of information protection and ensuring the reliability of its accounting are considered. Considerable attention in the article is paid to the peculiarities of the construction and operation of the blockchain system itself. The operating model is the most important for improving the operation of the blockchain system and encouraging users to use modern technologies. Much attention is paid to the system of accounting for information blocks, access to it, the use of hashes and ensuring the reliability of the connection of chains of blocks with each other. An important area of work is the analysis of accounting systems PoW and PoS, as well as combining them into a single, which provides more effective protection of information.

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ECONOMIC SECURITY SYSTEMS OF AGRICULTURAL HOLDINGS IN UKRAINE IN CONDITIONS OF SUSTAINABLE DEVELOPMENT

ECONOMIC SECURITY SYSTEMS OF AGRICULTURAL HOLDINGS IN UKRAINE IN CONDITIONS OF SUSTAINABLE DEVELOPMENT

Author(s): Bohdana Dub / Language(s): English Issue: 49/2021

Agricultural holdings have a great influence on economic and food security at national and global levels. Thus, it is necessary to study their own systems of enterprise-wide risk management. The article aims to determine the characteristics of the economic security systems at agroholdings in Ukraine and to reveal the development state of these systems by functional components. The study uses the following methods: semantic-structural, comparative and statistical analysis (in research of the components of the economic security of agricultural holdings); description, diagnostics of components of the economic security system; tabular and graphical (diagrams) – for visualization of research results and statistics systematization. The analysis of existing systems of economic security in agroholdings with assets in Ukraine is carried out. For further analysis, the 5 largest agroholdings of Ukraine were selected – with different financial status, scale of production, presence on international stock exchanges, that met the criterion of geographical representation (activity covers several regions of Ukraine) and availability of consolidated (including financial) information: Avangard, Agroton, IMC, Kernel and MHP. The general description of the companies and the history of activity are given. The information on the companies’ status by the components of the economic security system is summarized: personnel, political and legal, information, production, physical, market, interface security. The main characteristics of risk management systems of the five largest agricultural holdings of Ukraine are revealed, activity indicators are presented and their strategies are summarized. It is found out that the activity of agroholdings in the aspect of the enterprise economic security is fragmented and in fact, an integrated system is not yet formed. It is recommended to consider economic security as a comprehensive concept, to introduce appropriate units, or to involve specialists for the formation and development of holistic independent self-sufficient economic security systems in each agricultural company.

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The impact of free cash flow, equity concentration and agency costs on firm’s profitability

The impact of free cash flow, equity concentration and agency costs on firm’s profitability

Author(s): Haitham Nobanee,Jaya Abraham / Language(s): English Issue: 2/2017

This paper examines how free cash flow and equity concentration are associated with agency costs, and how they influence the profitability of insurance firms listed on the Saudi Stock Market. The results indicate that equity concentration has no significant impact on agency costs, free cash flow has no significant impact on agency costs and agency costs have no significant impact on firm’s profitability. The findings of this study do not show any evidence to support the agency theory among insurance firms listed on the Saudi Stock Market.

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Valuing synergies in strategic mergers and acquisitions using the real options approach

Valuing synergies in strategic mergers and acquisitions using the real options approach

Author(s): Anna Loukianova,Egor Nikulin,Andrey Vedernikov / Language(s): English Issue: 1.1/2017

The purpose of the current paper is to elaborate the model for assessing cumulative synergetic effect in M&A (Mergers and Acquisitions) deals on the basis of a real options approach. The majority of papers on the synergetic effects of M&A deals typically focus on a particular type of synergy, while the current paper proposes a model that accounts for the cumulative simultaneous effect of different types of operating and financial synergies. The methodology of our research is loosely based on Datar-Mathews real option valuation model, which is flexible and intuitive for practitioners. Formulae for assessing eight types of synergy typically arising from M&A deals are developed. They are integrated into a single model to assess their cumulative effect on the M&A deal using a simulation modelling approach. The method was used ex post to find synergy values in two recent M&A deals in the pharmaceutical industry, and produced sound results. The proposed approach to value target companies could be used by firms before an M&A deal in the due diligence process. Using this tool a company can build a bidding strategy and define the maximum premium it can pay for the target.

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Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia

Estimating systematic risk for the best investment decisions on manufacturing company in Indonesia

Author(s): Zarah Puspitaningtyas / Language(s): English Issue: 1/2017

Estimation of systematic risk is one of the important aspects of the best investment decisions. Through systematic risk prediction will be known risks to be faced by investors, because systematic risk is a measure of investment risk. In addition to returns, investors always consider the risk of investment, because investors are rational individuals, i.e. individuals who always consider the trade-off between return and risk. At a certain level of return, investors will tend to choose investments with the lowest risk level. Conversely, at a certain level of risk, investors tend to choose investments with the highest return rate. The purpose of this paper is to analyze the influence of the financial information on the systematic risk of stock manufacturing companies listed on the Indonesia Stock Exchange over a period of five years from January 2011 to December 2015. The financial information is measured in four accounting variables, i.e. financial leverage, liquidity, profitability, and firm size. The results of data analysis using multiple linear regression method to prove that at the 0.05 level only variable sized companies that significantly influence systematic risk. Meanwhile, the variable financial leverage, liquidity, and profitability does not affect the systematic risk. The results showed inconsistencies with the results of several previous studies. This inconsistency may be due to measurement problems variable accounting, the implementation period of the study, and the use of different research samples.

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Islamic finance: more expectations and less disappointment

Islamic finance: more expectations and less disappointment

Author(s): Fayaz Ahmad Lone,Siraj Ahmad / Language(s): English Issue: 1/2017

Islamic finance has faced a two-fold criticism from scholars; viz. constructive criticism and destructive criticism. Majority of the scholars criticize it with the intention to improve its overall development, but some scholars are more negative in their criticism. This paper proposes that Islamic banks (a component of Islamic finance) are not charitable institutions, but are the intermediary institutions that take care of investors’ expectations to keep the time value and return to their investments intact with the market fluctuations. The purpose of this paper is to provide better insight about Islamic finance so as to further improve this industry to achieve its long term goals and serve the society better. The paper also attempts to answer some of the common allegations imposed by scholars towards Islamic finance.

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