Simulation of the Interest on Savings Impact on the Construction Company Value During the Economic Crisis Period

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26110%2F18%3APU130464" target="_blank" >RIV/00216305:26110/18:PU130464 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Simulation of the Interest on Savings Impact on the Construction Company Value During the Economic Crisis Period

Original language description

his paper deals with the simulation of interest on savings impact on the construction company value in the economic crisis environment when any measure that may help the company to survive on the market or even improve its value is welcome. A substantive value valuation method was applied to assess the construction company value for the purpose of this research and simulation was carried out to analyse the impact of the interest on different amount of savings. A substantive value valuation method took into account both the reproduction cost and accounting values. Furthermore, different types of savings were considered, i.e. saved financial resources on (1) a term account without commitment and (2) with 1-year commitment. These two variants were compared with the valuation of the company in real time (zero variant). Savings were achieved through year-on-year decrease in inventory since decreasing the inventory level is one of the first decisions a company makes during economic crisis. Real construction company operating on the Czech construction market was selected as a subject of analysis for the case study. Data shows considerable deviations in terms of company value during the economic crisis (2008- 2015). Furthermore, results have revealed that the analysed interest on savings impact on the construction company value is minimal. However, the results of the article have also indicated that the crisis management factor is of a considerable importance.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

20101 - Civil engineering

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Book Series: International Scientific Conference on Economic and Social Development

ISBN

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ISSN

1849-7535

e-ISSN

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Number of pages

9

Pages from-to

520-528

Publisher name

Neuveden

Place of publication

Zagreb, Chorvatsko

Event location

Zagreb

Event date

Dec 14, 2018

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

000527683300057