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

článek ve sborníku ve WoS nebo Scopus

angličtina

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.

construction company, interest, inventory, savings, value

BOŽIKOVÁ, K.; HANÁK, T.

14. 12. 2018

Zagreb, Chorvatsko

1849-7535

Book Series: International Scientific Conference on Economic and Social Development

36

Chorvatská republika

520

528

9