| Peer-Reviewed

Decreasing of the Company Indebtedness Through Financial Investment

Published: 10 March 2013
Views:       Downloads:
Abstract

Present period of business brings problems, when many companies achieve profit by the way of indebtedness against external environment, in which company exists. Mainly due to the external relations company has almost regular problems with indebtedness and consequent paying disability. Goal of the paper is to show impact of financial investment to the indebtedness decreasing by the way of securities portfolio. Research database of securities value is used from the results of periodic auctions, according which there is calculated revenue of investment and investment risk, as it is defined by Brealey et. al (2000). Decision to solve the situation through financial investment can help financial managers to make effective solving of the indebtedness that can greatly determine further orientation of the company in the future.

Published in Journal of Investment and Management (Volume 2, Issue 2)
DOI 10.11648/j.jim.20130202.11
Page(s) 23-27
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Indebtedness; Liquidity; Financial investment; Portfolio of securities; Risk

References
[1] I. Bondarevova, „Platobná schopnosť obchodného partnera – riskovať či neriskovať." Finančný manažment a controlling v praxi, vol. 10, 2010, Bratislava, Iura Edition.
[2] R. Godalan, O. Kadan, M. Pevzner, „Asset liquidity and stock liquidity." Journal of financial and quantitative analysis. 2012, Cambridge, vol 47, issue 2, pp. 333-364.
[3] J. Cheng, M. A. Weiss, "The role of RBC, Hurricane expo-sure, bond portfolio duration and macroeconomic and in-dustry wide factors in property liability insolvency prediction." Journal of Risk and Insurance, Georges Dionne, HEC Montreal, 2012, vol 79, Issue 3, pp. 723-750.
[4] H. D. Kaya, "The effect of firms characteristics on choice of debt financing." International Journal of Management, Allan Macpherson and Oswald Jones, British academy of man-agement, 2011, vol 28, issue 4, pp. 199-208.
[5] A. Kelišek, J. Klučka, M. Ondrušek, S. Strelcová, „Eco-nomic security – a principal component of multilevel security concept in global economy." Communications, vol. 2, Žilina, 2011, pp. 44/48.
[6] R. Kotulič, P. Király, M.Rajčianová, „Finančná analýza podniku." Bratislava, Iura Edition, 2007, 206.
[7] B. Lester, A. Postlewait, R. Wright, "Information, liquidity, asset prices and monetary policy." Review of Economic Studies, Oxford, 2012, vol 79, issue 3, pp. 1209-1238
[8] L. Xiaowia, S. Ronnie, "Liquidity level or liquidity risk? Evidence form the financial crisis." Financial analysts journal. CFA Institute, 2011, vol 67, issue 3, pp. 51-62.
[9] A. Nashikkar, M. G. Subrahmanyam, S. Mahanti, "Liquidity and arbitrage in the market for credit risk." Journal of finan-cial and quantitative analysis, 2011, Cambridge, vol 46, issue 3, pp. 627-656.
[10] R. Neag, I. Pascan, "From the assumption of continuing the activity to insolvency – debates and reflections." Juridical Current, Petru Maior University of Tirgu Mures, Romania, 2011, vol. 14, Issue 4, pp. 229-236.
[11] C. Osler, G. Hong, "Rapidly increasing corporate debt: Are Firms now vulnerable to an economic slowdown?" Current Issues in Economics and Finance, USA, June 2000, vol. 6, Issue 7, pp.1-6.
[12] R. S. Jaff, D. Barrack, D. Charme, R. Phelan, J. Bailey, "International secured transactions and insolvency." Interna-tional Lawyer, 2012, vol 46, Issue 1, pp. 253-263.
[13] D. Ziegler, "Capital markets are good for you." Economist, London, 2003, vol. 366, Issue 8310, pp. 14-16.
[14] R.A. Brealey, S.C.Myers, A.J.Marcus, "Fundamentals of cor porate finance." Irwin McGraw Hill, 2000.
[15] M.Cehlár, K.Teplická, A.Seňová, "Risk management as instrument for financing projects in mining industry." SGEM 2011: 11th International Multidisciplinary Scientific Conference, Bulgaria, Albena, 2011, vol.1, pp. 913-920.
Cite This Article
  • APA Style

    Katarína Čulková, Marcela Taušová. (2013). Decreasing of the Company Indebtedness Through Financial Investment. Journal of Investment and Management, 2(2), 23-27. https://doi.org/10.11648/j.jim.20130202.11

    Copy | Download

    ACS Style

    Katarína Čulková; Marcela Taušová. Decreasing of the Company Indebtedness Through Financial Investment. J. Invest. Manag. 2013, 2(2), 23-27. doi: 10.11648/j.jim.20130202.11

    Copy | Download

    AMA Style

    Katarína Čulková, Marcela Taušová. Decreasing of the Company Indebtedness Through Financial Investment. J Invest Manag. 2013;2(2):23-27. doi: 10.11648/j.jim.20130202.11

    Copy | Download

  • @article{10.11648/j.jim.20130202.11,
      author = {Katarína Čulková and Marcela Taušová},
      title = {Decreasing of the Company Indebtedness Through Financial Investment},
      journal = {Journal of Investment and Management},
      volume = {2},
      number = {2},
      pages = {23-27},
      doi = {10.11648/j.jim.20130202.11},
      url = {https://doi.org/10.11648/j.jim.20130202.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20130202.11},
      abstract = {Present period of business brings problems, when many companies achieve profit by the way of indebtedness against external environment, in which company exists. Mainly due to the external relations company has almost regular problems with indebtedness and consequent paying disability. Goal of the paper is to show impact of financial investment to the indebtedness decreasing by the way of securities portfolio. Research database of securities value is used from the results of periodic auctions, according which there is calculated revenue of investment and investment risk, as it is defined by Brealey et. al (2000). Decision to solve the situation through financial investment can help financial managers to make effective solving of the indebtedness that can greatly determine further orientation of the company in the future.},
     year = {2013}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Decreasing of the Company Indebtedness Through Financial Investment
    AU  - Katarína Čulková
    AU  - Marcela Taušová
    Y1  - 2013/03/10
    PY  - 2013
    N1  - https://doi.org/10.11648/j.jim.20130202.11
    DO  - 10.11648/j.jim.20130202.11
    T2  - Journal of Investment and Management
    JF  - Journal of Investment and Management
    JO  - Journal of Investment and Management
    SP  - 23
    EP  - 27
    PB  - Science Publishing Group
    SN  - 2328-7721
    UR  - https://doi.org/10.11648/j.jim.20130202.11
    AB  - Present period of business brings problems, when many companies achieve profit by the way of indebtedness against external environment, in which company exists. Mainly due to the external relations company has almost regular problems with indebtedness and consequent paying disability. Goal of the paper is to show impact of financial investment to the indebtedness decreasing by the way of securities portfolio. Research database of securities value is used from the results of periodic auctions, according which there is calculated revenue of investment and investment risk, as it is defined by Brealey et. al (2000). Decision to solve the situation through financial investment can help financial managers to make effective solving of the indebtedness that can greatly determine further orientation of the company in the future.
    VL  - 2
    IS  - 2
    ER  - 

    Copy | Download

Author Information
  • Sections