IDEAS home Printed from https://ideas.repec.org/a/vrs/finiqu/v15y2019i4p34-43n4.html
   My bibliography  Save this article

Profit Reinvestment: Main Motives Supporting Financial Decisions

Author

Listed:
  • Pokorná Pavla

    (School of Business Administration in Karviná, Czech Republic)

  • Šebestová Jarmila

    (School of Business Administration in Karviná, Department of Business Economics and Management, Czech Republic)

Abstract

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.

Suggested Citation

  • Pokorná Pavla & Šebestová Jarmila, 2019. "Profit Reinvestment: Main Motives Supporting Financial Decisions," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 15(4), pages 34-43, December.
  • Handle: RePEc:vrs:finiqu:v:15:y:2019:i:4:p:34-43:n:4
    DOI: 10.2478/fiqf-2019-0026
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/fiqf-2019-0026
    Download Restriction: no

    File URL: https://libkey.io/10.2478/fiqf-2019-0026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carmen Elena Anton & Alexandra Zamfirache & Ruxandra-Gabriela Albu & Titus Suciu & Sergiu Mihai Sofian & Oana-Andreea Ghiță-Pîrnuță, 2024. "Sustainable Entrepreneurship: Romanian Entrepreneurs’ Funding Sources in the Present-Day Context of Sustainability," Sustainability, MDPI, vol. 16(2), pages 1-29, January.

    More about this item

    Keywords

    reinvestment; profit; motivation to reinvest;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:finiqu:v:15:y:2019:i:4:p:34-43:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.