Dilemma of Directions for Reinvestment

• Autorzy: Pavla Pokorná , Jarmila Šebestová , Šárka Čemerková
• Języki publikacji: EN

Abstrakty

EN

Successful entrepreneurial activity is mostly connected with added value creation. This activity simply means that each process generates a profit to increase the financial value of the company. The next step, from the financial point of view, is to make decisions on how to properly reinvest the profit generated to positively influence the company in the future. This study investigates the factors that have the potential to affect profit reinvestment decisions based on primary research on 238 business entities in the Czech Republic. Using primary data collection, it was possible to explain the main motives, such as payback period or extra benefit from reinvestment, as the most significant factor influencing reinvestment direction. Finally, the average reinvestment percentage rate is very low (20%), when the recommended value is mostly about 64%. Surprisingly, factors such as age, gender or competitive advantage were confirmed to be statistically non-significant. Finally, this article suggests future directions for the development of portfolio models. (original abstract)

Słowa kluczowe

EN

Investment policy; Management; Profit; Investment strategy

PL

Polityka inwestycyjna; Zarządzanie; Zysk; Strategia inwestycyjna

• Czasopismo: Forum Scientiae Oeconomia
• Rocznik: 2019
• Tom: 7
• Numer: nr 4 Digital Socio-economic Platforms in the Era of Industry 4.0
• Strony: 83--99

Twórcy

autor

Pavla Pokorná

• Silesian University in Opava, Czech Republic

autor

Jarmila Šebestová

• Silesian University in Opava, Czech Republic

autor

Šárka Čemerková

• Silesian University in Opava, Czech Republic

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Identyfikatory

DOI

10.23762/FSO _VOL 7_NO4_6