Corporate Finance and Strategic Management

A special issue of Risks (ISSN 2227-9091).

Deadline for manuscript submissions: closed (15 November 2022) | Viewed by 9975

Special Issue Editor


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Guest Editor
Banking Institute, SGH Warsaw School of Economics, Al. Niepodległości 162, 02-554 Warsaw, Poland
Interests: derivatives market; banking risk; financial stability; financial management

Special Issue Information

Dear Colleagues,

The topics of funding sources, accounting, investment processes and their rationale, capital structuring, and other challenges faced by corporations are still in demand. In addition to the above-mentioned research areas, the new Special Issue of Risks entitled “Corporate Finance and Strategic Management” also addresses the impact of short- and long-term planning and corporate governance strategies on shareholder value. There are close links between these fields of corporate finance and strategic management, which is reflected in the need to adapt the organization’s strategy precisely to its financial objectives in the face of the changing business environment. Thanks to the processes embedded in strategic management, it is possible to continuously monitor the degree of achievement of objectives (including those in the area of corporate finance) and to initiate corrective measures if necessary. As the economy adapts to the pandemic and new challenges such as rising energy prices, potential shortages of energy sources, the European Union’s climate policy, increasing inflation, and the Ukraine conflict, the well-known problems and relations need to be re-examined repeatedly. 

In this Special Issue, we welcome high-quality research papers addressing the various aspects of corporate finance and strategic management. 

You are therefore invited to submit your latest results in the area of corporate finance, such as optimal capital structuring, maximization of shareholder value, cost and tax effectiveness, funding of cost determinants as well as planning, monitoring, business strategies, impact of innovation and competition on value creation, and corporate risk management.

Prof. Dr. Paweł Niedziółka
Guest Editor

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Keywords

  • corporate risk management
  • capital structuring
  • business strategy
  • cost management
  • innovation
  • shareholder value
  • cost of funding
  • value proposition
  • energy transition
  • sustainability
  • budgeting
  • strategic management models
  • cybersecurity
  • sanctions
  • chains of supply

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Published Papers (2 papers)

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Research

21 pages, 479 KiB  
Article
Working Capital Management Impact on Profitability: Pre-Pandemic and Pandemic Evidence from the European Automotive Industry
by Rezart Demiraj, Suzan Dsouza and Mohammad Abiad
Risks 2022, 10(12), 236; https://doi.org/10.3390/risks10120236 - 12 Dec 2022
Cited by 17 | Viewed by 6621
Abstract
Efficient management of working capital is essential for firms to avoid overinvesting in short-term assets for maximum profitability while guaranteeing much-needed liquidity to run their operations. This study examines the impact of working capital management on firms’ profitability in the automotive industry in [...] Read more.
Efficient management of working capital is essential for firms to avoid overinvesting in short-term assets for maximum profitability while guaranteeing much-needed liquidity to run their operations. This study examines the impact of working capital management on firms’ profitability in the automotive industry in Europe before and during the COVID-19 pandemic period. The automotive industry is vital to the European economy, being a major component of the total industrial value added to the GDP of the continent. Existing research on this topic is inconclusive, and there is a gap in the literature exploring the working capital management effect on firm performance in periods of crisis. Unlike most research, this study focuses on a single industry to better capture the impact of working capital management on firm profitability. It also adds the COVID-19 dimension to stress the importance of proper working capital management, especially in periods of economic distress. The results show that the receivables collection period, inventory conversion period, accounts payable period, and cash conversion cycle have a significant negative impact on ROA for both the pre-pandemic and pandemic period, suggesting that managers must be prudent regarding their firm’s credit policy by not being overly generous with credit terms and making every effort to promptly collect their receivables. Moreover, excessive levels of inventory impair profitability by locking up valuable cash reserves, which are vital, especially in periods of crisis. Though seemingly counterintuitive, being profitable also means not postponing payables settlement unnecessarily. Full article
(This article belongs to the Special Issue Corporate Finance and Strategic Management)
11 pages, 404 KiB  
Article
Related Party Transactions and Firm Value in Indonesia: Opportunistic vs. Efficient Transactions
by Trisninik Ratih Wulandari, Doddy Setiawan and Ari Kuncara Widagdo
Risks 2022, 10(11), 210; https://doi.org/10.3390/risks10110210 - 4 Nov 2022
Cited by 2 | Viewed by 2928
Abstract
Related party transactions (RPT) are a common transaction conducted among companies and are the focus of the business world today. The purpose of this study is twofold, as follows: first, to provide empirical evidence for whether the RPT of related party loans in [...] Read more.
Related party transactions (RPT) are a common transaction conducted among companies and are the focus of the business world today. The purpose of this study is twofold, as follows: first, to provide empirical evidence for whether the RPT of related party loans in manufacturing companies in Indonesia is an opportunistic transaction or an efficient transaction, and second, to provide evidence for whether there are differences in company perspectives before and during the COVID-19 pandemic. This study employs data from all manufacturing companies listed on the Indonesia Stock Exchange (IDX). The data analysis techniques include descriptive statistical and hypothesis testing. The results of this study in the period 2018–2021 show that RPT has a positive effect on company value. During this period, that is, the years prior to the COVID-19 pandemic, RPT had a negative effect on company value. In contrast, the 2020–2021 period (during the COVID-19 pandemic) shows the opposite result: RPT has a positive effect on company value. The results of this study suggest that in the 2018–2021 and the pandemic period (2020–2021), companies conducted RPT for efficiency purposes, while prior to the pandemic (2018–2019) RPT was conducted for opportunistic purposes. Full article
(This article belongs to the Special Issue Corporate Finance and Strategic Management)
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