Strategies for Resource Allocation and Capital Accumulation in Business

Topic: Financial Management
Words: 1674 Pages: 6

Eka, H. (2020). Dividend, investment and leverage policy based on agency theory in Indonesia manufacturing companies. International Journal of Management (IJM), 11(12), 492-510. Web.

Corporate principles of control over resources allocation within the various areas of financial policies are addressed in this article. The researcher evaluates the impacts of depreciation, emission, dividend, profit management, and some other practices designed to coordinate budget control based on specific objectives and strategic goals. Different investment principles are also viewed as potential development algorithms. The author pays particular attention to the dividend policy and defines it as a program aimed at optimizing the proportions between the consumed and capitalized parts of the profit to maximize the market value of the company. The mention of stock market factors influencing the development of businesses is a valuable addition to the aforementioned policies. Individual economic theories complement the discussion and provide a rational theoretical basis for studying relevant practices and their role in shaping the strategy of asset allocation.

Feng, Y., Zhang, H., Chiu, Y. H., & Chang, T. H. (2021). Innovation efficiency and the impact of the institutional quality: A cross-country analysis using the two-stage meta-frontier dynamic network DEA model. Scientometrics, 126(4), 3091-3129. Web.

The main focus of this article is on the assessment of internal management principles that largely determine the sustainability and effectiveness of resource allocation strategies. The authors identify specific tasks that responsible coordinators face; they relate to meeting financial obligations, ensuring reproduction costs, social needs, as well as material incentives for employees. The study also highlights the value of innovative policies in this area. According to the findings, in the case of competent efforts to optimize operational activities, profits are guaranteed to accumulate, which, in turn, is the ultimate goal of any strategic development plan. Promoting innovative growth through internal management initiatives is seen in the context of market cooperation, which, in the case of a favorable partnership, may have a beneficial effect on the sustainability of investment programs promoted as business policies, as well as other asset allocation projects.

Lin, W. L., Ho, J. A., & Sambasivan, M. (2018). Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: A dynamic panel data approach. Sustainability, 11(1), 60. Web.

The evaluation of the resource allocation system within the framework of a corporate strategy is the main topic of this study. The authors pay particular attention to socio-political roles in corporate structures and note the risks, including reputational ones, that companies may incur if corporate asset management principles are ignored. The article emphasizes the importance of effective resource allocation practice, which consists in a competent assessment of the sources of profit and attraction of the necessary strategies for obtaining it. In the context of any existing regulations, this business approach meets all standards and does not violate fiscal rules. Thus, the researchers confirm that the basic principle of business development is the accumulation of capital with the ability to minimize costs and eliminate unforeseen expenses that can affect financial stability and incur losses inconsistent with budgetary capabilities.

Moradi, M., Tarighi, M. H., & ElaheFarmanbar-Fdafan, M. (2020). The effect of firm financial situation and industry characteristics on capital structure adjustment: Evidence from a distressed market. Journal of Banking and Finance, 3(1), 1-13.

One of the key research objectives of this article is to identify the ways of controlling organizational capital. The assessment of funding channels is carried out by analyzing resources that can serve as sources of income. The authors also consider the activities of capital owners and emphasize the methods of asset management from the standpoint of economic benefits, which are the main ones in planning methods of budget allocation. Investment activities make up a large share of the discussion and are evaluated from the standpoint of approaches designed to accumulate capital through corresponding operational strategies. The practical value of this article lies in the detailed analysis of the relationships between capital structure and individual variables, such as deficit and surplus. This evaluation algorithm allows for identifying specific correlations and drawing conclusions regarding the optimal mechanisms for controlling organizational assets to maximize profits with minimal losses.

Morozko, N., Morozko, N., & Didenko, V. (2018). Modeling the process of financing small organizations. Journal of Reviews on Global Economics, 7, 774-783. Web.

Financial asset management in small firms is the main topic of this study. Attention is paid to the issues related to control over the available budget and the ways of strengthening it through appropriate strategic initiatives. In particular, one of the factors that the authors emphasize as significant is the replenishment of financial resources at the expense of external creditors, for instance, through bank loans. Establishing partnerships with other firms is also one of the options available to these companies. Such a move could bring a win-win and enable necessary growth strategies without resorting to loans. Profit, in this case, may not come directly due to distinctive business directions; however, in the end, both parties involved remain in the black. As a result, the article raises topical issues that are critical in resource allocation planning in small firms.

Parente, R. C., Geleilate, J. M. G., & Rong, K. (2018). The sharing economy globalization phenomenon: A research agenda. Journal of International Management, 24(1), 52-64. Web.

The goal of the paper is to reveal the implications of the sharing economy phenomenon on the business ecosystem. In the process of research, the authors identify unique and common approaches to the formation of growth strategies and market presence based on the principle of internationalization. Particular attention is paid to the sources of replenishment of budgetary funds, which serve as channels for making profits. The detailed framework developed to visualize the strategy of sharing economy platforms demonstrates how firms operate in such an ecosystem and which stakeholders are involved in joint activities. The research focus on resource allocation undertaken through operational and marketing efforts reveals examples of individual businesses, such as Uber and Airbnb, which profit from a competent growth strategy and generate profits by making their businesses open to innovation and creating convenient expansion mechanisms.

Ravikumar, B., Santacreu, A. M., & Sposi, M. (2019). Capital accumulation and dynamic gains from trade. Journal of International Economics, 119, 93-110. Web.

The opportunities for profit and capital accumulation realized through dynamic market trading are considered by the researchers in this article. The practical value of the study is that the authors analyze both long-term tasks to implement, which may allow for developing a specific business and reaching a new level of operational activity, and short-term steps that are no less important for building a strategically competent growth course. The categories of financial resources by type of economic use are also described in the article, which makes it possible to assess how consumption assets differ from those of accumulation. Numerous schemes and graphs make the study valid and simplify the perception of a large amount of numeric data. Costs involved in operating activities are also mentioned, which provides a comprehensive picture of the financial work performed at trading enterprises.

Rusiadi, K. F. F., Anwar, Y., Suwarno, B., & Lubis, H. S. (2020). Good corporate governance mechanism for-profit management of automotive Indonesia company. IOSR Journal of Economics and Finance, 11(6), 57-64. Web.

The article presents the features of corporate governance with regard to the pursuit of capital accumulation policy on the example of one of the Indonesian automobile companies. The authors pay particular attention to the term of profit management policy as a concept considered a basic principle of organizational development. According to this approach, in an effort to allocate financial resources competently, any company should take into account both incoming profit and assets spent in the process of work. Special economic markers, such as net profit, allow managers to determine the real performance of business activities and identify the potential success or, conversely, omission in the current budget control program. One of the main research conclusions is that mistakes made in corporate governance create problems at the corporate level, which are difficult to resolve by implementing minor changes.

Trotsenko, A. A., Belevsky, T. V., Kievskaya, O. G., Alexandrova, E. Y., & Gurevskaya, L. A. (2018). Definition of the effective strategic enterprise management model in context of economic security. Revista Espacios, 39(36), 18.

The authors of the article assess how effectively a company can develop from the perspective of a capital accumulation strategy in the long term by taking into account not only the volume of available assets but also their structure. As the researchers argue, this practice is an adequate step to take due to the need to provide a clear vision of the company’s future and its prospects, which is particularly essential in a competitive market and under unstable customer demand. Evaluating the importance of prudent investment policies is another essential topic covered in the article. While taking into account economic models, the authors note that the share of invested resources should be carefully assessed to avoid unforeseen losses due to the misallocation of funds. Asset security at the organizational level is also a significant aspect the researchers discuss.

Wadström, P. (2018). Aligning corporate and business strategy: Managing the balance. Journal of Business Strategy, 40(4), 44-52. Web.

The key research task that the authors of the article set is to identify the interaction between business and corporate level strategies, as well as control over the accompanying features of the workflow. According to the findings of the study, if a successful balance is found, firms get an opportunity to strengthen the market value of the company in the long term, which is one of the main functions of competent management. The abilities to plan a budget and allocate resources rationally are realized more successfully if organizational policy successfully combines business and corporate principles of development. At the same time, according to the researchers, this is crucial to consider related criteria, such as the form of management and the long-term nature of strategic plans. Thus, a competent combination of corporate and business level strategies reveals valuable prospects for strengthening market positions.

References

Eka, H. (2020). Dividend, investment and leverage policy based on agency theory in Indonesia manufacturing companies. International Journal of Management (IJM), 11(12), 492-510. Web.

Feng, Y., Zhang, H., Chiu, Y. H., & Chang, T. H. (2021). Innovation efficiency and the impact of the institutional quality: A cross-country analysis using the two-stage meta-frontier dynamic network DEA model. Scientometrics, 126(4), 3091-3129. Web.

Lin, W. L., Ho, J. A., & Sambasivan, M. (2018). Impact of corporate political activity on the relationship between corporate social responsibility and financial performance: A dynamic panel data approach. Sustainability, 11(1), 60. Web.

Moradi, M., Tarighi, M. H., & ElaheFarmanbar-Fdafan, M. (2020). The effect of firm financial situation and industry characteristics on capital structure adjustment: Evidence from a distressed market. Journal of Banking and Finance, 3(1), 1-13.

Morozko, N., Morozko, N., & Didenko, V. (2018). Modeling the process of financing small organizations. Journal of Reviews on Global Economics, 7, 774-783. Web.

Parente, R. C., Geleilate, J. M. G., & Rong, K. (2018). The sharing economy globalization phenomenon: A research agenda. Journal of International Management, 24(1), 52-64. Web.

Ravikumar, B., Santacreu, A. M., & Sposi, M. (2019). Capital accumulation and dynamic gains from trade. Journal of International Economics, 119, 93-110. Web.

Rusiadi, K. F. F., Anwar, Y., Suwarno, B., & Lubis, H. S. (2020). Good corporate governance mechanism for-profit management of automotive Indonesia company. IOSR Journal of Economics and Finance, 11(6), 57-64. Web.

Trotsenko, A. A., Belevsky, T. V., Kievskaya, O. G., Alexandrova, E. Y., & Gurevskaya, L. A. (2018). Definition of the effective strategic enterprise management model in context of economic security. Revista Espacios, 39(36), 18.

Wadström, P. (2018). Aligning corporate and business strategy: Managing the balance. Journal of Business Strategy, 40(4), 44-52. Web.