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

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

20101 - Civil engineering

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název statě ve sborníku

Book Series: International Scientific Conference on Economic and Social Development

ISBN

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ISSN

1849-7535

e-ISSN

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Počet stran výsledku

9

Strana od-do

520-528

Název nakladatele

Neuveden

Místo vydání

Zagreb, Chorvatsko

Místo konání akce

Zagreb

Datum konání akce

14. 12. 2018

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000527683300057