Purpose
This paper aims to investigate whether managerial overconfidence has an impact on investment inefficiency beyond its influence on the use of internal financing or whether internal financing ...behaves as a full intermediary.
Design/methodology/approach
The study employed three dependent variables, namely business investment scale, overinvestment and underinvestment, and analyzed data from 282 firms across five different industries listed in 11 Middle East/North Africa (MENA) countries between 2013 and 2019 using regression analysis via least square dummy variable (LSDV).
Findings
The findings indicate that while internal financing can provide funding for investment opportunities and address capital shortages, it may also result in overinvestment, particularly in companies led by overconfident managers.
Practical implications
Stakeholders, including shareholders and board of directors, should pay attention to the chief executive officer (CEO)'s behavioral aspects such as overconfidence in decision-making while undertaking new investment projects. Additionally, regulators and policymakers in emerging markets like MENA should re-evaluate the corporate governance framework, devise a corporate governance index and promote boardroom gender diversity as it can significantly reduce risk.
Originality/value
This study adds to the limited research on the impact of managerial overconfidence on investment efficiency in the MENA region. By focusing on this region, which has unique economic, political and social characteristics, the study provides new insights into the role of behavioral biases in investment decision-making in emerging markets.
The purpose of this study is to recognize the share of self-generated sources of financing for activities of public higher education institutions as part of their general stream of financing. ...Therefore, the key question that will be answered in this study is: how is the structure of financing sources of a studied institution of higher education formed? In the theoretical section, findings were based on the results of literature research. In turn, in the empirical part, findings were based on the results of a case study supported by observation in a multi-field participating university. The entity's financial statements were also used. On the basis of the research results, the structure of financing sources for the studied public institution of higher education was determined, indicating the possibility of using the entity's financial reporting for this purpose. It was noticed, based on the classification of the sources of financial supply indicated in the literature, that they are heterogeneous – drawn from both the public and private sectors. An increase in the share of funds supplied from the private sector was also revealed. In turn, private sources mainly came from fees related to the teaching process. Private sources also included those from commercialization of research results. The research presented in the study has provided new knowledge about the structure of the financing sources of a public education of higher institution in the context of current conditions for its functioning. In particular, the research helps supplement the existing scarcity of knowledge about the share of self-generated financing for a public higher education institution in the general financing stream of its activities.
The purpose of this study is to recognize the share of self-generated sources of financing for activities of public higher education institutions as part of their general stream of financing. ...Therefore, the key question that will be answered in this study is: how is the structure of financing sources of a studied institution of higher education formed? In the theoretical section, findings were based on the results of literature research. In turn, in the empirical part, findings were based on the results of a case study supported by observation in a multi-field participating university. The entity's financial statements were also used. On the basis of the research results, the structure of financing sources for the studied public institution of higher education was determined, indicating the possibility of using the entity's financial reporting for this purpose. It was noticed, based on the classification of the sources of financial supply indicated in the literature, that they are heterogeneous – drawn from both the public and private sectors. An increase in the share of funds supplied from the private sector was also revealed. In turn, private sources mainly came from fees related to the teaching process. Private sources also included those from commercialization of research results. The research presented in the study has provided new knowledge about the structure of the financing sources of a public education of higher institution in the context of current conditions for its functioning. In particular, the research helps supplement the existing scarcity of knowledge about the share of self-generated financing for a public higher education institution in the general financing stream of its activities.
In recent years, the main vector of scientific research in the field of regional economics has been the development of large localized economic systems. It was proposed to use the term “urbanized ...territory” as one of the generalizing terms for describing socio-economic systems. The analysis of various interpretations of the concept of “urbanized territory” allowed us to identify and form a limited list of their inherent characteristics and propose an author’s approach to their definition. A general formalized cost model for the development of urbanized territories is proposed, which includes basic infrastructure elements, as well as improvement coefficients for each block. Taking into account the projected investments, the structure of financing measures for the formation of the cost part within the framework of cost modeling, as well as cost distribution options among the main subjects of the formation of an urbanized territory are proposed. Due to the fact that urbanized territories have different levels of urban planning value, the authors in the article propose a marginality coefficient of the territory, which characterizes the change in the market value of real estate in a specific location of the urbanized territory, depending on the formed parameters of the living environment.
The development of market transformations in Ukraine has led to the noticeable changes in the sphere of formation and using enterprise capital. Formation of the optimal capital structure, which ...allows to combine an increase in financial results with the existing risk level, is the main factor of maintaining effective functioning. In this connection, processes of financial activity administration require rethinking and improving the approaches to diagnosis of financing sources both in the theoretical and practical aspects. The aim of the study is to improve the methodological approaches to the diagnosis of enterprise capital structure as an instrument of justifying and making managerial decisions in financial management system on the basis of theoretical approaches and specifying the definition of the term “enterprise financial activity administration”. Methods of scientific cognition were used in the work, in particular: of system approach, analysis, synthesis, scientific abstraction, generalizing. Methods of financial coefficient analysis and Shuhart’s control charts creation were used to carry out capital structure diagnosis on the example of JSC “Zhytlobud-1” (Kharkiv). The author’s vision of the essence of enterprise financial activity administration as a process of developing and implementing managerial decisions was formed, including formation and use of its capital with the aim of financial strength, profitability and creating conditions for fulfillment of obligations, based on information, diagnostic and analytical support for the realization of managerial procedures. It was concluded that diagnosis of capital structure served as the key element in the system of instruments for the administration of enterprise financial activity. The use of Shuhart‘s control charts for diagnosing the capital structure was proposed, and relevant calculations were carried out on the example of JSC “Zhytlobud-1”, the level of manageability of its capital components was assessed, and key management objects in the structure of the company’s financing sources were identified. The results of the research can be useful for scientists, students of economic specialties of higher educational establishments, managers and employees of financial divisions of enterprises and financial institutions
External financing of SMEs in Serbia Dukić, Dragan; Petrevska, Ivana; Rastovac, Dragan
Ekonomija. Teorija i praksa,
2022, Volume:
15, Issue:
1
Journal Article
Peer reviewed
Open access
Considering the fact that small and medium enterprises often face funding difficulties, this paper discusses and analyzes the issue of financing SMEs in Serbia, i.e. the usage and possibilities of ...alternative, relatively more affordable, cheaper and more flexible options for financing entrepreneurial projects, which are available in practice. The research was conducted by surveying entrepreneurs and SME owners, in order to show the extent to which SMEs in practice rely on their own financing of their business, and how much is represented by financing from external non-banking sources. Also, the paper investigates and analyzes the level of satisfaction of entrepreneurs with the current usage of various financial instruments that they can access in different circumstances, as well as potential opportunities for their usage, with a focus on the current state of SME financing in practice. The obtained results indicate that entrepreneurs mostly rely on own financing of their business, that various options of non-bank financing are insufficient and that there is a lot of untapped potential. However, there is a need for more simplified procedures and better informedness of entrepreneurs.
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