The study is focused on behavioural aspects in the financial decision-making process of wood-processing enterprises. The main aim was to map this topic and determine the key behavioural factors that ...lead management to make mistakes. Primary data on this issue were obtained from an empirical survey. The empirical survey was conducted through a questionnaire that contains questions focused on behavioural decision-making aspects. Using statistical methods, three key behavioural factors were determined. By selecting the given behavioural factors, it was established that love, hate, and sadness are the key factors that influence management behaviour and decision-making. In the real business environment, two managers working in a wood processing enterprise were chosen; they were willing to provide us with a review and opinion on the results of the survey. By analysing all the data, it has been concluded that, even though managers are trying to direct their behaviour and activities, they often do not notice the influence of these factors, and sometimes they are unable to make decisions. The managers should be able to direct their behaviour and activities, to provide self-control and take into consideration the fact that these factors are always present. Results determine the key and systematically occurring errors in the financial decision-making process, caused by the influence of the human factor. We have developed a model for activating the three key behavioural factors applied in the financial decision-making process as a tool that can help company managers not to make the wrong decisions.
U ovom su radu prezentirani načini ponašanja menadžera drvoprerađivačkih poduzeća pri donošenju financijskih odluka. Glavni cilj istraživanja bio je mapirati i odrediti ključne čimbenike ponašanja koji navode menadžere na pogrešne odluke. Primarni podatci za ovo istraživanje prikupljeni su empirijskim anketiranjem koje je provedeno upitnikom s pitanjima vezanim za aspekte ponašanja pri donošenju odluka. Primjenom statističkih metoda određena su tri ključna čimbenika ponašanja. Odabirom danih obilježja ponašanja utvrdili smo da su ljubav, mržnja i tuga ključne odrednice koje utječu na menadžere pri donošenju odluka. Izabrana su dva menadžera iz drvoprerađivačkih poduzeća u stvarnom poslovnom okruženju koji su bili voljni dati osvrt i mišljenje o rezultatima anketa. Analizom svih podataka zaključeno je da i oni menadžeri koji su vrlo čvrsti u svojim odlukama i koji pozorno kreiraju svoje ponašanje i aktivnosti najčešće nisu svjesni utjecaja danih čimbenika ponašanja, pa stoga ne mogu donijeti pravu odluku. Svaki bi menadžer trebao pravilno usmjeravati svoje ponašanje i aktivnosti, imati samokontrolu i uzimati u obzir činjenicu da uvijek postoje čimbenici koji utječu na njihove odluke. Rezultati definiraju ključ i pogreške koje se sustavno pojavljuju u procesu donošenja financijskih odluka, a nastaju pod utjecajem ljudskih čimbenika. Kreirali smo model aktiviranja triju ključnih čimbenika ponašanja i procesa donošenja financijskih odluka kao alata za izbjegavanje pogrešnih odluka menadžera.
Investment decision-makings should be regarded in each business entity as the crucial factor for its long-term prosperity. An acquired decision affects the performance of the company as well as its ...competitiveness in long time. If a competent investor has an interest to make a qualified investment decision, it means that he must primarily determine the time and risk factor. In the capital-intensive investment projects, attention must be paid to the risks that the preparation, realization and use of investment bring. The aim of this paper is to identify critical factors that affect the expected profit and cash flow in the implementation of investment projects by applying the most advanced models used to quantify the risks of investing. Research was conducted in a wood processing and furniture manufacturing company. The results given by cash flow indicatiors show that the investment project is feasible and effective. By changing some parameters, sensitivity analysis shows that the main risk factors for the project in question are the selling price, volume of production, material costs and labor costs.
The presence of foreign direct investment in certain sectors or country determines several factors - the determinants of foreign direct investment. The article analyzes the selected factors of FDI ...inflows to the Slovak Republic and to the wood-processing industry in SR; it focuses primarily on assessing the contemporary situation of the business environment in Slovakia and investment incentives provided to foreign investors. The article also presents the development of foreign direct investment in Slovakia, in the branch of wood processing, analyzing the effects of FDI in specific conditions of the Slovak Republic and wood-processing industry.
The study focuses on the selected aspects of investment measurement and management for the support of financial and economic decision-making of investors in wood-processing sectors. The aim of the ...study was to analyze the indicators for the structure and cost of capital of furniture and paper/forest branches in Slovakia, quantify the actual expected return on investment based on the selected methodology, and consequently find out the fundamental differences resulting from the specific conditions of given sectors. Methodologically, the study uses procedures for the weighted average cost of capital (WACC), capital asset pricing model (CAPM) for determining the cost of equity, and calculation of the beta coefficient considering the risk premium. The results of the study demonstrated a similar levered beta in both analyzed sectors (1.17 in furniture, 1.20 in paper/forest), but in each sector for a different reason. The expected rate of return is higher in furniture (7.84%) compared to paper/forest products at the level of 6.04%. The findings provide the possibility of comparing the required and expected rate of return on invested capital and making the appropriate long-term investment decisions.
Fire is considered one of the major natural hazards that damages European forests and causes losses for forest owner. The forest fires endanger the financial stability of forest enterprises, which ...may cause their economic decline. One possibility how to cover these losses is to insure forest land against this kind of specific risk of forest land management. The aim of the present paper is to analyse possibilities of forest fire insurance for forest owners and enterprises in the Slovak private insurance market. The market analysis was based on document analysis of general terms and insurance conditions of chosen private insurance companies and interviews with insurance agents. The results show that forest owners and enterprises have only few options for forest property insurance concerning the specific risk of forest fires. Only one commercial insurance company provides such forest fire insurance product for forest owners. This insurance covers material damage to forest land and timber damage.
The aim of the paper is to map the current state of succession as a critical prerequisite for the sustainability and development of Slovak wood-processing family businesses. The questionnaire survey ...was evaluated using statistical methods (Cronbach alpha, binomial test, interval estimate, Pearson's test, and the Wilcoxon test). The results showed that Slovak wood-processing family enterprises do not have experience implementing the succession process. They do not plan to sell their business to strategic investors. The main reason for succession planning is the age of the founder of the enterprise. The key factors that threaten a successful succession process include a lack of a qualified workforce, a lack of interest in offspring in the business, and a lack of legislation in the field of the family business. The research provides a comprehensive view of succession in Slovak wood-processing family businesses and points to critical issues that need to be addressed.
Controlling is an effective tool used to manage the future of an enterprise actively. Its implementation and enforcement is a long-term, difficult and complex process that is specific and inimitable ...for each enterprise. All internal stakekolders (owners, managers, employees) need to be prepared for the implementation and use of controlling in an enterprise, respecting the barriers and benefits of this management tool. The aim of the paper was to identify the most important financial and non-financial benefits and barriers affecting the employees of wood-processing enterprises in controlling implementation into business practice. The empirical research into the given issue was conducted in a form of questionnaire in Slovak wood-processing enterprises. In order to evaluate the research results, the descriptive, graphical and mathematic-statistical methods were used. Based on the research results, recommendations were formulated to highlight key financial and non-financial benefits, or barriers affecting employees in implementing controlling into business practice. On one hand, employees do not perceive controlling as a tool with financial benefits, but on the other hand, it represents a tool with improvement of activities with effect on cost reduction. They consider excessive control to be the most important barrier of this tool. The achieved results led to formulating and describing of three key phases of controlling implementation, which could be beneficial to owners and managers to eliminate key barriers of controlling implementation and enforcement, ensuring that controlling is fully operational and accepted by all stakeholders.
Cultural intelligence (CQ) includes cultural knowledge, strategy, drive and the resulting behavior of individuals in intercultural situations. In implementing CQ in enterprises, it is essential to ...focus on mutual understanding and tolerance, and the development of intercultural skills and competences. The paper analyzes the concept of cultural intelligence, and presents a newly developed tool assessing cultural intelligence in a workplace of enterprises in Slovakia. The main objective of the research was to assess the level of the individual facets of cultural intelligence of employees of enterprises in Slovakia, and on the basis of the results, to propose and algorithm of CQ enhancement in enterprises in Slovakia. The research was conducted in a form of a questionnaire on a sample of 236 respondents. Within the research, it has been found out that the level of cultural intelligence in enterprises in Slovakia is low; therefore, the proposed algorithm of CQ enhancement is substantiated.
Today at a time of global economic and financial crisis, timber industry in Slovakia, as well as other industry, is not just trying to look inside for company reserves in production processes, but ...also identifies new trends in production and its competitiveness in world markets. It is obvious that the pulp and paper industry needs to keep up the competitive pressure with new trends in efficient production, which is certainly linked to investments and their expected effects (capacitance, substitution, income effect). One of the key factors of economic efficiency of production of SAQ pulp is a complex issue of ensuring the required inputs.
Decisions of financial managers can improve the competitiveness of the enterprise. Decisions are affected not only by knowledge and experience but also by emotional and cognitive deviations in ...behavior. Considering the role of competitiveness, this paper investigated whether an effect of behavioral factors on the financial decision-making of managers can be shown, and if so, to what degree. The aim of the paper is to propose a concept, the essence of which is to determine the key systematically-occurring errors in the financial decision-making process of managers rising from the effect of the human factor as a basis of prevention of incorrect financial decisions. The issue was mapped in the territory of the Visegrad Four (V4) by means of an empirical survey by the method of a questionnaire. By evaluating the research, the methodology of statistical hypotheses testing by measures of association was used (contingency coefficients - Cramer’s contingency coefficient V and Pearson’s contingency coefficient C) and Pearson’s chi-square test. The results of the research allow the formulation of conclusions that expand current knowledge in the field of research. The main results of the conducted research are that the key behavioral aspects (cognitive, psychological and emotional) that influence the financial decision-making process of business managers in the V4 countries are love, sadness and hate. A concept was created from the achieved results, the application of which in the enterprises of the V4 countries can help managers avoid making improper financial decisions which could have a negative impact on the financial health and competitiveness of an enterprise.
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