Dilemma of Directions for Reinvestment

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F19%3AA0000082" target="_blank" >RIV/47813059:19520/19:A0000082 - isvavai.cz</a>
Result on the web
<a href="http://ojs.wsb.edu.pl/index.php/fso/article/view/10/8" target="_blank" >http://ojs.wsb.edu.pl/index.php/fso/article/view/10/8</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.23762/fso_vol7_no4_6" target="_blank" >10.23762/fso_vol7_no4_6</a>

Result language
angličtina
Original language name
Dilemma of Directions for Reinvestment
Original language description
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 gen-erated 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 direc-tion. 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 develop-ment of portfolio models.
Czech name
—
Czech description
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Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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