Determinants of Effects of Foreign Direct Investment in Terms of Slovak Republic and Wood-Processing Industry of Slovakia

Merková, Martina; Drábek, Josef; Jelačić, Denis

doi:10.5552/drind.2012.1136

Cited by 11 publications

(6 citation statements)

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“…FDI by multinational corporations plays an important role in the transformation of former centrally planned economies into vibrant market systems, since it provides an inflow of capital, management skills, and jobs, alongside increasing exports and transfer of technology (Chidlow, Salciuviene & Young, 2009). Considering given localization of our research and existing literature from this region, authors Pavlínek and Smith (1998) Merková, Drábek & Jelačić, 2012). Another research realized in Slovakia has statistically confirmed that better business performance is significantly dependent on financing from foreign capital (Merková, Rajnoha & Dobrovič, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

Relationships Between Investment Effectiveness Controlling and Business Performance

Rajnoha

Новак

Merková

2016

MJE

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We focused on business performance in companies and in scope of investment measurement and management we analyse using of investment effectiveness evaluation methods. Goal of our research at first was to detect what investment valuation methods apply companies in Slovakia in their management and what determinants cause it. Consequently, the aim was to find out if using of certain investment valuation method or some valuation approach consisted from several methods, has the positive impact into business performance. Analysed data were collected trough questionnaire. We defined several hypotheses and decided to apply two kinds of statistical methods appropriate for tested variables. Results of the research confirmed some assumptions and we state that use of investment valuation methods is limited by foreign ownership of company and certain methods caused better business performance.

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Section: Literature Reviewmentioning

confidence: 99%

Relationships Between Investment Effectiveness Controlling and Business Performance

Rajnoha

Новак

Merková

2016

MJE

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“…On the other side, the wood-processing industry of Slovakia noted no innovation development focused on increasing the competitiveness of production and efficiency increasing. Positive is the labour productivity growth, the most significant in pulp and paper, where is recorded long-term growth above the average of industrial production, especially in periods with high inflows of FDI into the mentioned sector (Merková et al, 2012). Foreign capital firms, mostly multinationals, are a special category in the analysed sector.…”

Section: Literature Reviewmentioning

confidence: 97%

“…Most empirical studies conclude that FDI contributes to both factor productivity and income growth in host countries; beyond what normally would trigger domestic investment, the fastest-growing countries are also the biggest FDI-host countries. Several previous research studies were dedicated to FDI issues in CEE countries (Rajnoha et al, 2018;Dudáš and Lukáč, 2014;Merková et al, 2012;Gauselmann et al, 2011;Dow and Ferenčíková, 2010;Chidlow et al, 2009;Rugraff, 2008). Horta et al (2016) demonstrated the impact of internationalisation and diversification strategies on the performance of construction industry companies.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Moreover, the dominant Slovak renewable natural resources industry, the pulp and paper sector, needs to keep up the competitive pressure with new trends in efficient production, which is certainly linked to investments and their expected effects (Soltes and Gavurova, 2014). Therefore, in the past, both quantitative and qualitative approaches were used by Merková, Rajnoha and Novák (2012) to diagnose FDI impact in specific conditions in Slovakia and especially in wood processing branches. The task of the evaluation was to define and compare the effects at different stages.…”

Section: Literature Reviewmentioning

confidence: 99%

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Impact of FDI in Economic Value Added: Empirical Study in Terms of Renewable Natural Resources Mining within Wood-processing Industry

2022

AMS

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The traditional methods used in the past to assess the benefits of foreign direct investments (FDI) are no longer applicable. The presented study deals with the issue of increasing the potential of the renewable natural resources mining industries and increasing its efficiency and competitiveness through the specific methodology of industries performance measurement and diagnostic of the effects of FDI. The objective of the research was to analyse FDI in Slovakia and other countries of the Visegrad Four, identify significant measurable effects of the FDI impact on the development of the wood, paper and furniture sector in Slovakia as well as quantify the economic performance of given industries based on the EVA model. Appropriate mathematical and statistical methods were used in the research of interdependencies between quantitative variables. In two-dimensional inductive statistics, we applied correlation and linear regression analysis and analysis of variance (ANOVA). The results of the research should support investment decision-making in business and industry investment strategy to aim for the economic development of the renewable natural resources mining industries. Simultaneously, we offer a new methodology for evaluating the potential and economic performance of other Slovak mining industries, other post-communist European countries, and potential investors worldwide.

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“…The wood-processing industry in Slovakia is currently in a difficult situation, but there are still possibilities for better investment management and the potential for a positive impact on the performance of companies [13]. Quantitative analysis at the level of the wood-processing industry confirmed the significant impact of investment on the growth of sales and productivity; the subsequent analysis of the structure of value added showed a strong correlation between wages and value-added growth [14]. Also, according to several economic indicators, productivity growth and wages, the paper sector appears to be a sector with potential for the Slovak economy.…”

Section: Introductionmentioning

confidence: 95%

Quantification of Expected Return of Investment in Wood Processing Sectors in Slovakia

Kánová,

Drábek,

Ćurić

et al. 2023

Forests

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The study focuses on the selected aspects of investment measurement and management for the support of financial and economic decision-making of investors in wood-processing sectors. The aim of the study was to analyze the indicators for the structure and cost of capital of furniture and paper/forest branches in Slovakia, quantify the actual expected return on investment based on the selected methodology, and consequently find out the fundamental differences resulting from the specific conditions of given sectors. Methodologically, the study uses procedures for the weighted average cost of capital (WACC), capital asset pricing model (CAPM) for determining the cost of equity, and calculation of the beta coefficient considering the risk premium. The results of the study demonstrated a similar levered beta in both analyzed sectors (1.17 in furniture, 1.20 in paper/forest), but in each sector for a different reason. The expected rate of return is higher in furniture (7.84%) compared to paper/forest products at the level of 6.04%. The findings provide the possibility of comparing the required and expected rate of return on invested capital and making the appropriate long-term investment decisions.

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Determinants of Effects of Foreign Direct Investment in Terms of Slovak Republic and Wood-Processing Industry of Slovakia

Cited by 11 publications

References 0 publications

Relationships Between Investment Effectiveness Controlling and Business Performance

Relationships Between Investment Effectiveness Controlling and Business Performance

Impact of FDI in Economic Value Added: Empirical Study in Terms of Renewable Natural Resources Mining within Wood-processing Industry

Quantification of Expected Return of Investment in Wood Processing Sectors in Slovakia

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