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The majority of small and medium-sized enterprises (SMEs) worldwide are fragile and endangered in facing financial problems due to a lack of financial resources. To overcome these issues, their capabilities based on a Resource-based View (RBV), such as innovativeness and competitiveness, might enable them to reduce their major financial issues related to their financial risk management. In this regard, this paper aims to examine the impacts of SMEs’ innovative and competitive attitudes on their financial risk management. Moreover, this paper examines whether those impacts differ depending on firm size. In line with those purposes, this paper analyzes 1221 Czech, Slovak, and Hungarian SMEs randomly selected from various databases. The researchers employ an online survey to collect the research data from the survey respondents, who are the executives of the analyzed SMEs. Concerning the data analysis, the researchers run Ordinal Logistic Regression Test. According to the results, while innovativeness negatively affects the financial risk management of SMEs, competitiveness does not. On the other hand, the results regarding firm size indicate that more competitive and less innovative microenterprises perform better in financial risk management compared to their less competitive and more innovative counterparts. However, competitiveness and innovativeness do not play determining roles in the financial risk management of small and medium-sized firms. The costs of R&D activities that firms face, the sectors that firms operate, and the educational status of the executives of SMEs might be strong arguments to explain the result of this paper. [ABSTRACT FROM AUTHOR]

Research background: In the digital era, digital transformation has become a strategic imperative for leadership agenda. Many firms have accelerated their pace in digital transformation to improve their performance and competitiveness. Despite increasing attention in the literature on the role of digital transformation in firms' operations, understanding the effect of digital trans formation on corporate finance remains limited. This study focuses on cash holdings, which are essential for firms to survive and thrive. Purpose of the article: The aim of this paper is to examine the critical role of digital transformation on the cash holdings of listed firms in China and provide micro evidence regarding the economic consequences of the digital economy from firm level. This study also aims to deepen our understanding of the influence of digital transformation on firms' operation and financial policy. Additionally, this paper attempts to provide relevant guidance for implementing policies to promote digital transformation and devise corresponding cash holding strategies. Methods: The text analysis method is used to measure the degree of digital transformation of China's A-share listed companies. The sample covers 19,337 observations from 2007-2020. A multiple regression model with firm and year fixed effect is developed to investigate the relationship between digital transformation and corporate cash holdings. In the robustness test, this paper substitutes the independent and dependent variables, and adopts instrumental variable estimation method. In the mechanism test, this paper uses the sub-sample regression method in the mechanism test. Findings & value added: This study reveals that digital transformation can significantly reduce corporate cash holdings by alleviating the precautionary motive, agency motive and transaction motive of cash holdings. Further analysis shows that the negative effect of digital transformation on cash holdings is more profound in high-tech firms and non-state-owned enterprises. The methodology applied in this paper can be used in other economic research of firms. This study provides insights into the effects of digital transformation on corporate financial policy. This provides a solution for reducing firms' cash holdings. This study also deepens the understanding of digital transformation from a corporate perspective. [ABSTRACT FROM AUTHOR]

The paper discusses ways of measuring the financial performance of businesses. The aim is to determine to what extent the form of profit calculation influences value of return on assets (hereinafter referred to as 'ROA'), which is frequently used as an indicator for measuring financial performance. The theoretical part is focused on the comparative analysis of accounting data based on Czech practices and IFRS with the in-depth focus on interest charges and reporting requirements. There is discussed the topic of objective and subjective measurement of financial performance. In the practical part, ROA is calculated using a profit in two forms of its construction. There are evaluated TOP 100 Czech companies in order to assess the differences in the final values of the tested indicator. The results are linked to the capital structure of the analysed companies and prove that the level of indebtedness influences the difference in the ROA calculations when different kinds of profit are used. In the case of the companies with higher indebtedness, it is more appropriate to compare the ROA indicators based on the nominator containing earnings before interest and taxes. It shall be concluded that this is a pioneer study of this topic in the Czech Republic and probably also in the CEE region. [ABSTRACT FROM AUTHOR]

The unusual financial transactions including money laundering activities is very actual question of the country security and the economics security. The finding of these activities can protect the inhabitants, because it can indicate the possible terrorist and the people, who make the financial crimes. It is very hard to find concrete institution dealing with this problematic. Almost it is in USA, but in European Union it is not so often. The research articles, which are orientated to this problematic, have only descriptive character. The concrete methods how to find the unusual fanatical transactions and money laundering activities are not public presented. It not exists many literature sources, which can be used how the base of new algorithm for finding the unusual financial transactions and money laundering activities. It is the tendency to create a network of universities researching the problematic of unusual financial transactions and money laundering activities. This article serves to show institutions dealing with this problematic. [ABSTRACT FROM AUTHOR]