Profit Reinvestment: Main Motives Supporting Financial Decisions

Pavla Pokorná; Jarmila Šebestová

doi:10.2478/fiqf-2019-0026

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Profit Reinvestment: Main Motives Supporting Financial Decisions

Financial Internet Quarterly

Volume 15 (2019): Issue 4 (December 2019)

By: Pavla Pokorná and Jarmila Šebestová

Open Access

|Dec 2019

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.

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Articles in this issue

DOI: https://doi.org/10.2478/fiqf-2019-0026 | Journal eISSN: 2719-3454

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Language: English

Page range: 34 - 43

Submitted on: May 22, 2019

Accepted on: Nov 8, 2019

Published on: Dec 31, 2019

Published by: University of Information Technology and Management in Rzeszow

In partnership with: Paradigm Publishing Services

Publication frequency: 4 issues per year

Keywords:

reinvestment,

profit,

motivation to reinvest

Related subjects:

Business and economics,

Political economics,

Economic theory, systems and structures,

Microeconomics,

Macroeconomics,

Public finance and fiscal theory

© 2019 Pavla Pokorná, Jarmila Šebestová, published by University of Information Technology and Management in Rzeszow
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Volume 15 (2019): Issue 4 (December 2019)