Abstract: The article analyzes problems of improving the management systems of the ownership risks in the conditions of the transformation of the Russian economy. Among the main sources of threats business owners should highlight is the inefficiency of the implementation of business models and interaction with hired managers. In this context, it is particularly important to analyze the relationship of business models and ownership risks. The analysis of this problem appears to be relevant for a number of reasons: Firstly, the increased risk appetite of the owner directly affects the business model and the composition of his holdings; secondly, owners with significant stakes in the company are factors in the formation of particular types of risks for owners, for which relations have a significant influence on a firm's competitiveness and ultimately determines its survival; and thirdly, inefficient system of management ownership of risk is one of the main causes of mass bankruptcies, which significantly affects the stable operation of the economy as a whole. The separation of the processes of possession, disposal and use in modern organizations is the cause of not only problems in the process of interaction between the owner and managers in managing the organization as a whole, but also the asymmetric information about the kinds and forms of the main risks. Managers tend to avoid risky projects, inhibit the diversification of the organization's assets, while owners can insist on the development of such projects, with the aim not only of creating new values for themselves and consumers, but also increasing the value of the company as a result of increasing capital. In terms of separating ownership and management, evaluation of projects by the ratio of risk-yield requires preservation of the influence of the owner on the process of development and making management decisions. It is obvious that without a clearly structured system of participation of the owner in managing the risks of their business, further development is hopeless. In modern conditions of forming a risk management system, owners are compelled to compromise between the desire to increase the organization's ability to produce new value, and, consequently, increase its cost due to the implementation of risky projects and the need to tolerate the cost of lost opportunities of risk diversification. Improving the effectiveness of the management of ownership risks may also contribute to the revitalization of creditors on implementation claims to inefficient owners, which ultimately will contribute to the efficiency models of ownership control to exclude variants of insolvency. It is obvious that in modern conditions, the success of the model of the ownership of risk management and audit is largely determined by the ability and willingness of the owner to find a compromise between potential opportunities for expanding the firm's ability to create new value through risk and maintaining the current level of new value creation and an acceptable level of risk through the use of models of diversification.
Abstract: In this paper, we discuss the deteriorated standing of engineering companies, some of the reasons behind it and the problems facing engineering enterprises during the financial crisis. We show the part that financial analysis plays in the detection of the main factors affecting the standing of a company, classify internal problems and the reasons influencing efficiency thereof. The publication contains the analysis of municipal engineering companies in post-Soviet transitional economies. In the wake of the 2008 world financial crisis the issue became even more poignant. It should be said though that even before the problem had been no less acute for some post-Soviet states caught up in a lengthy transitional period. The paper highlights shortcomings in the management of transportation companies, with new, more appropriate methods suggested. In analyzing the financial stability of a company, three elements need to be considered: current assets, investment policy and structural management of the funding sources leveraging the stability, should be focused on. Inappropriate management of the three may create certain financial problems, with timely and accurate detection thereof being an issue in terms of improved standing of an enterprise. In this connection, the publication contains a diagram reflecting the reasons behind the deteriorated financial standing of a company, as well as a flow chart thereof. The main reasons behind low profitability are also discussed.
Abstract: Although human resources are recognized as the crucial companies’ resources and their positive influence on companies’ performances has been confirmed through different researches, scientists are still debating it. In order to contribute this debate, this paper firstly discusses the most important human resource management elements and practices and its influence on companies’ success. Afterwards it defines human resource “bundles” – interrelated and internally consistent human resource practices, complementary to each other, or the most important human resource practices and elements regarding Croatian companies and its human resource management activities. Finally, the paper provides empirical results; more precisely it reveals the relation of the level of development of human resource management function (“bundles”) and companies’ financial performances (using profitability ratios, liquidity ratios, solvency ratios and a group of additional ratios related to employees’ indicators).
Abstract: Bangladesh is a patriarchal and male dominated country. Traditional, cultural, social, and religious values and practices have reinforced the lower status of women accorded to them in society and have limited their opportunities for education, technical and vocational training, and involvement with earning activities outside their households. After independence numbers of women are doing job outside their households. This study attempts to find out the reasons of engaging in earning activities outside households and difficulties faced by upper and lower class working women in Bangladesh. To explore the objectives and research questions of the study descriptive techniques had been used. Survey was conducted among the women who were working in Rajshahi city of Bangladesh and face-to-face interviews were conducted to collect data. Findings of the study illustrates that most of the upper class working women engaged into job because they wanted to utilized their education and to bring solvency in the family, and they spend their income for meeting the needs of all the members of the family. On the other hand, most of the lower class working women involved into earning activities outside their households because they want to bring solvency in their families and spend their income on household expenditure. Both classes became tensed for their children because they had to stay at their working place for long time. Therefore, day care center should be established besides their working place for their children.
Abstract: This contribution aims to compare legislation adjusting the course of insolvency proceedings in France, Germany and Slovakia. On the basis of an investigation of the legislative adjustment of this problem, an attempt is made to ascertain in the given countries the extent to which the outcome of the entire proceedings is influenced by legislation and to determine the fundamental moments that influence costs, recovery rate and the duration of proceedings. A comparative analysis was utilized in order to achieve the set goal. The results of the survey could be used to improve legislation so as to lead in the best and most expedient way to a departure from the market of those subjects that are for economic reasons unable to continue with their activities whilst burdening the entire process with the lowest possible costs, which would lead to a high level of satisfaction for creditors.
Abstract: One of the most significant threats to the economy of a nation is the bankruptcy of its banks. This study evaluates the susceptibility of Nigerian banks to failure with a view to identifying ratios and financial data that are sensitive to solvency of the bank. Further, a predictive model is generated to guide all stakeholders in the industry. Thirty quoted banks that had published Annual Reports for the year preceding the consolidation i.e. year 2004 were selected. They were examined for distress using the Multilayer Perceptron Neural Network Analysis. The model was used to analyze further reforms by the Central Bank of Nigeria using published Annual Reports of twenty quoted banks for the year 2008 and 2011. The model can thus be used for future prediction of failure in the Nigerian banking system.
Abstract: The Czech Republic is a country whose economy has
undergone a transformation since 1989. Since joining the EU it has
been striving to reduce the differences in its economic standard and
the quality of its institutional environment in comparison with
developed countries. According to an assessment carried out by the
World Bank, the Czech Republic was long classed as a country
whose institutional development was seen as problematic. For many
years one of the things it was rated most poorly on was its bankruptcy
law. The new Insolvency Act, which is a modern law in terms of its
treatment of bankruptcy, was first adopted in the Czech Republic in
2006. This law, together with other regulatory measures, offers debtridden
Czech economic subjects legal instruments which are well
established and in common practice in developed market economies.
Since then, analyses performed by the World Bank and the London
EBRD have shown that there have been significant steps forward in
the quality of Czech bankruptcy law. The Czech Republic still lacks
an analytical apparatus which can offer a structured characterisation
of the general and specific conditions of Czech company and
household debt which is subject to current changes in the global
economy. This area has so far not been given the attention it
deserves. The lack of research is particularly clear as regards analysis
of household debt and householders- ability to settle their debts in a
reasonable manner using legal and other state means of regulation.
We assume that Czech households have recourse to a modern
insolvency law, yet the effective application of this law is hampered
by the inconsistencies in the formal and informal institutions
involved in resolving debt. This in turn is based on the assumption
that this lack of consistency is more marked in cases of personal
bankruptcy. Our aim is to identify the symptoms which indicate that
for some time the effective application of bankruptcy law in the
Czech Republic will be hindered by factors originating in
householders- relative inability to identify the risks of falling into
debt.
Abstract: Investment in a constructed facility represents a cost in
the short term that returns benefits only over the long term use of the
facility. Thus, the costs occur earlier than the benefits, and the owners
of facilities must obtain the capital resources to finance the costs of
construction. A project cannot proceed without an adequate
financing, and the cost of providing an adequate financing can be
quite large. For these reasons, the attention to the project finance is an
important aspect of project management. Finance is also a concern to
the other organizations involved in a project such as the general
contractor and material suppliers. Unless an owner immediately and
completely covers the costs incurred by each participant, these
organizations face financing problems of their own. At a more
general level, the project finance is the only one aspect of the general
problem of corporate finance. If numerous projects are considered
and financed together, then the net cash flow requirements constitute
the corporate financing problem for capital investment. Whether
project finance is performed at the project or at the corporate level
does not alter the basic financing problem .In this paper, we will first
consider facility financing from the owner's perspective, with due
consideration for its interaction with other organizations involved in a
project. Later, we discuss the problems of construction financing
which are crucial to the profitability and solvency of construction
contractors. The objective of this paper is to present the steps utilized
to determine the best combination of minimum project financing.
The proposed model considers financing; schedule and maximum net
area .The proposed model is called Project Financing and Schedule
Integration using Genetic Algorithms "PFSIGA". This model
intended to determine more steps (maximum net area) for any project
with a subproject. An illustrative example will demonstrate the
feature of this technique. The model verification and testing are put
into consideration.