J 2019

Profit Reinvestment: Main Motives Supporting Financial Decisions

POKORNÁ, Pavla and Jarmila ŠEBESTOVÁ

Basic information

Original name

Profit Reinvestment: Main Motives Supporting Financial Decisions

Authors

POKORNÁ, Pavla (203 Czech Republic, guarantor, belonging to the institution) and Jarmila ŠEBESTOVÁ (203 Czech Republic, belonging to the institution)

Edition

e-Finanse, 2019, 1734-039X

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50204 Business and management

Country of publisher

Poland

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

RIV identification code

RIV/47813059:19520/19:A0000080

Organization unit

School of Business Administration in Karvina

Keywords in English

reinvestment; profit; motivation to reinvest

Tags

International impact, Reviewed
Změněno: 21/4/2020 11:27, Ing. Petra Skoumalová

Abstract

V originále

Reinvestment decisions are based on basic the economic literacy of entrepreneurs because they do not want to affect future liquidity or development activities. The main goal of the article is to suggest a simple decision tree model to describe profit reinvestments in a general way based on results of a primary pilot study (128 interviews), where reinvestment behaviour is affected by specific factors like risk taking, competitive advantage or business experience. After that a decision-making tree is suggested to explain the process of reinvestment as determined by the manager.