Financial security of companies is of the strategic importance. An effective credit risk management greatly impacts on a company security because its failure can threaten the existence of the company. These aspects are closely related to the sustainability of the SME sector, which is determined by many negative processes in the current post-crisis period. The aim of this article is to research the dependence between the entrepreneur’s ability to manage the credit risk in their company effectively and their knowledge of the corporate capital. Within the set goal, we looked at the differences in the attitudes of entrepreneurs depending on a company size, gender and education of entrepreneurs. To analyze acquired data, we used descriptive statistics, regression analyses and Z-score in our research. The originality of the article is that the whole process and result trajectory is focused on highlighting the financial security and sustainability of the searched sector. The results of our research brought an interesting finding. On the one hand, entrepreneurs declared a high capability of the effective credit risk management in their companies and, on the other hand, demonstrated a low level of knowledge in managing the corporate capital. This trend creates a potential possibility of a growth of corporate financial risks. The research results confirmed that the theoretical knowledge of the corporate capital has a significant impact on the formation of effective attitudes of the entrepreneur to manage the credit risk. Larger companies, men and entrepreneurs with higher education have much better level of knowledge of the corporate capital management. The research results enable to form a platform for a deeper insight into the financial security processes in companies and in the sustainability of the SME sector, especially in the current post-crisis period.
This study was performed to evaluate and examine financial literacy and retirement planning in sector employment in Vietnam in the context of financial safety during lifecycle. In order to collect primary data, a questionnaire was designed and distributed to 257 employees in the public and private sectors in Ho Chi Minh City. The results of descriptive analysis indicated that those who work in the public sector have a higher percentage of correct answers to questions about financial literacy and knowledge of social insurance than that of employees in the private sector. The results of a linear probability model (LPM) and two-stage least squares (2SLS) regression show that financial knowledge and regular saving are significant factors that enhance retirement planning, whereas sector employment is insignificant to retirement planning. These findings should improve the knowledge of financial literacy, pensions and social insurance disseminated through retirement seminars and education programs for workers. More research, however, should be conducted on these topics in Vietnam.
For establishing the best monetary policy it is essential to know if in practice monetary variables determine gross domestic product (GDP) in constant prices. Price stability contributes to the formation of stable environment for the development of commercially sustainable activities and expresses the responsibility of central banks for sustainable industrial development. It contributes to maximizing the GDP, employment, stable interest rates and sustainable economic development which have consequences for households’ welfare as well as enterprises’ value maximization. For a set of more monetary variables, we identified that in Romania money aggregates M2 and M3 as well as internal credit were strongly correlated with GDP over the time period 1995:Q1-2015:Q4, while in Slovakia only M2 and M3 were strongly correlated with GDP in the same time period. Contrary to expectations, according to a Bayesian linear regression, the internal credit changes had a negative impact on economic growth on the overall period. This conclusion is consistent with other empirical studies. This paper’s analysis discovered that the aforementioned negative correlation is due to the crisis period, because the regime-switching Bayesian model indicated that only in times of economic contraction changes in internal credit negatively affected economic growth.