IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i14p8785-d865463.html
   My bibliography  Save this article

Model for Sustainable Financial Planning and Investment Financing Using Monte Carlo Method

Author

Listed:
  • Alica Tobisova

    (Faculty of Aeronautics, Technical University of Kosice, Rampova 7, 041 21 Kosice, Slovakia)

  • Andrea Senova

    (Faculty of Mining, Ecology, Process Control and Geotechnologies, Technical University of Kosice, Letna 9, 042 00 Kosice, Slovakia)

  • Robert Rozenberg

    (Faculty of Aeronautics, Technical University of Kosice, Rampova 7, 041 21 Kosice, Slovakia)

Abstract

The article deals with current issues of finance and investment planning with a selective focus on financial decision-making processes using sophisticated software tools. The article has a special significance in this period when it is necessary to re-evaluate and consider ways of appropriate and effective investment and financial policy in view of the restrictions in enterprises in Slovakia, which brings with it the global pandemic COVID-19 or another crisis in enterprises. The aim of the article is to propose a methodology as a tool for streamlining the investment activities of companies. The proposed methodology combines the usability of traditional and modern economic methods, making it an important tool for the sustainability and competitiveness of enterprises. Three variants of investment decisions in the enterprise were simulated using simulation in terms of two approaches. The first approach focuses on mathematical–economic calculations of deterministic modeling through traditional software tools. The second stochastic modeling uses the simulation of financial risks using a modern software tool using the Monte Carlo method. The output is the creation of a graphical management model in the form of an algorithm.

Suggested Citation

  • Alica Tobisova & Andrea Senova & Robert Rozenberg, 2022. "Model for Sustainable Financial Planning and Investment Financing Using Monte Carlo Method," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8785-:d:865463
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/14/8785/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/14/14/8785/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yunyu Zhang, 2020. "The value of Monte Carlo model-based variance reduction technology in the pricing of financial derivatives," PLOS ONE, Public Library of Science, vol. 15(2), pages 1-13, February.
    2. Choong‐Yuel Yoo & Jinhan Pae, 2013. "Estimation and Prediction Tests of Cash Flow Forecast Accuracy," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 32(3), pages 215-225, April.
    3. Miroslav Kelemen & Volodymyr Polishchuk & Beáta Gavurová & Róbert Rozenberg & Juraj Bartok & Ladislav Gaál & Martin Gera & Martin Kelemen, 2021. "Model of Evaluation and Selection of Expert Group Members for Smart Cities, Green Transportation and Mobility: From Safe Times to Pandemic Times," Mathematics, MDPI, vol. 9(11), pages 1-21, June.
    4. Emilio Abad-Segura & Mariana-Daniela González-Zamar & Eloy López-Meneses & Esteban Vázquez-Cano, 2020. "Financial Technology: Review of Trends, Approaches and Management," Mathematics, MDPI, vol. 8(6), pages 1-37, June.
    5. Adriana Csikosova & Katarina Culkova & Erik Weiss & Maria Janoskova, 2021. "Evaluation of Market with Accommodation Facilities Considering Risk Influence—Case Study Slovakia," JRFM, MDPI, vol. 14(5), pages 1-17, May.
    6. Daniel J Arenas & Lanair A Lett & Heather Klusaritz & Anne M Teitelman, 2017. "A Monte Carlo simulation approach for estimating the health and economic impact of interventions provided at a student-run clinic," PLOS ONE, Public Library of Science, vol. 12(12), pages 1-12, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrea Senova & Alica Tobisova & Robert Rozenberg, 2023. "New Approaches to Project Risk Assessment Utilizing the Monte Carlo Method," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    2. Mário Molokáč & Enikő Kornecká & Henrieta Pavolová & Tomáš Bakalár & Miloš Jesenský, 2023. "Online Marketing of European Geoparks as a Landscape Promotion Tool," Land, MDPI, vol. 12(4), pages 1-22, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrea Senova & Alica Tobisova & Robert Rozenberg, 2023. "New Approaches to Project Risk Assessment Utilizing the Monte Carlo Method," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    2. Yu, Rong & Li, Jianhong, 2024. "Does fintech influence sustainable development under natural resource constraints: insights from 270 Chinese cities," Resources Policy, Elsevier, vol. 91(C).
    3. Alica Tobisova & Andrea Senova & Gabriela Izarikova & Ivana Krutakova, 2022. "Proposal of a Methodology for Assessing Financial Risks and Investment Development for Sustainability of Enterprises in Slovakia," Sustainability, MDPI, vol. 14(9), pages 1-14, April.
    4. Haohao Qu & Sheng Liu & Jun Li & Yuren Zhou & Rui Liu, 2022. "Adaptation and Learning to Learn (ALL): An Integrated Approach for Small-Sample Parking Occupancy Prediction," Mathematics, MDPI, vol. 10(12), pages 1-19, June.
    5. Jaydip Sen & Rajdeep Sen & Abhishek Dutta, 2021. "Machine Learning in Finance-Emerging Trends and Challenges," Papers 2110.11999, arXiv.org.
    6. Agni Rakshit & Gautam Bandyopadhyay & Tanujit Chakraborty, 2024. "Hedge Error Analysis In Black Scholes Option Pricing Model: An Asymptotic Approach Towards Finite Difference," Papers 2405.02919, arXiv.org.
    7. Hafez Baker & Thair A. Kaddumi & Mahmoud Daoud Nassar & Riham Suleiman Muqattash, 2023. "Impact of Financial Technology on Improvement of Banks’ Financial Performance," JRFM, MDPI, vol. 16(4), pages 1-20, April.
    8. Jean C. Kouam & Simplice A. Asongu & Bin J. Meh & Robert Nantchouang & Fri L. Asanga & Denis A. Foretia, 2024. "A Synthetic Indicator of the Quality of Support for Businesses in Burkina-Faso, Cameroon, and Ghana," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4939-4974, March.
    9. Mohan Khanal & Sudip Raj Khadka & Harendra Subedi & Indra Prasad Chaulagain & Lok Nath Regmi & Mohan Bhandari, 2023. "Explaining the Factors Affecting Customer Satisfaction at the Fintech Firm F1 Soft by Using PCA and XAI," FinTech, MDPI, vol. 2(1), pages 1-15, January.
    10. Dinabandhu Bag & Saurabh Goel, 2023. "Weak Form of Call Auction Prices: Simulation Using Monte Carlo Variants," Capital Markets Review, Malaysian Finance Association, vol. 31(1), pages 59-71.
    11. Abad-Segura, Emilio & González-Zamar, Mariana Daniela & López-Meneses, Eloy, 2022. "El proceso de toma de decisiones basado en métodos cuantitativos [Analysis of research on decision making-based on quantitative methods]," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 34(1), pages 118-136, December.
    12. Sang, Yuli & Xie, Mingjian & Bai, Xiaolong & Guo, Fusen, 2024. "Does natural resource dependence influence the impact of financial technologies on corporate ESG and digital governance in China's listed enterprises?," Resources Policy, Elsevier, vol. 91(C).
    13. Krisna Nugraha & Muhtosim Arief & Sri Bramantoro Abdinagoro & Pantri Heriyati, 2022. "Factors Influencing Bank Customers’ Orientations toward Islamic Banks: Indonesian Banking Perspective," Sustainability, MDPI, vol. 14(19), pages 1-18, September.
    14. Loubna Belaid & Magalie Benoit & Navdeep Kaur & Azari Lili & Valery Ridde, 2020. "Population Health Intervention Implementation Among Migrants With Precarious Status in Montreal: Underlying Theory and Key Challenges," SAGE Open, , vol. 10(2), pages 21582440209, May.
    15. Veronika Machová & Tomáš Krulický & Michaela Brožová, 2022. "Valuation of goodwill using weighted average return on assets: assessment of average transport and storage enterprise in the Czech Republic," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(2), pages 510-526, December.
    16. Cheng, Haoyu & Chen, Zhijun & Qin, Meng & Su, Chi-Wei, 2024. "Mineral resources and Fintech: Catalyzing human capital and sustainable development," Resources Policy, Elsevier, vol. 92(C).
    17. John R. M. Hand & Henry Laurion & Alastair Lawrence & Nicholas Martin, 2022. "Explaining firms’ earnings announcement stock returns using FactSet and I/B/E/S data feeds," Review of Accounting Studies, Springer, vol. 27(4), pages 1389-1420, December.
    18. Oliver Cruz-Milan & Sergio Lagunas-Puls, 2021. "Effects of COVID-19 on Variations of Taxpayers in Tourism-Reliant Regions: The Case of the Mexican Caribbean," JRFM, MDPI, vol. 14(12), pages 1-23, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:14:p:8785-:d:865463. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.