How to strengthen the financial autonomy to boost investment in the company?

Dhaoui, Iyad (2013): How to strengthen the financial autonomy to boost investment in the company? Published in: (May 2013)

Abstract

Boost investment is the ultimate goal of every company. There are many strategies to achieving this goal. Indeed, each company imposes a duty to promote efficient investment. In this perspective, many contractors see that the financial autonomy is the solely or principally option for enhancing investment. This paper will focus on the factors that lead to the promotion of investment in the business, but it will insist on the preference of finance autonomy, which would represent a significant issue, allowing for a more coherent framework for promoting investment. Company needs to focus efforts in improving this option that provides direct sources of growth in term of investment, now and in the future because the movements towards financial autonomy started under the conditions of severe budgetary problems and fiscal constraints. Currently, financial autonomy is a recurrent notion in the economy, but some questions related to the processes of investment cannot be answered without a thorough analysis of the contents of local financial autonomy. Financial autonomy is not in itself desirable, but serves as a means to certain end. This paper explores this notion, its relationship with the dynamic of investment as well as its impact in the company’s perspectives. In our contemporary era, financial autonomy is seldom treated as a separate subject and never been investigated systematically. In order to be consistent with the objectives set by the current economic climate and the globalization, financial analysis should bypass this lack in favor of a new approach. For this purpose, this paper tries to give some possible reflections that help us to develop the analytical tool that may help us to improving the way towards the amplification of the analysis paradigm.

• Item Type: MPRA Paper
• Language: English
• Keywords: financial autonomy, investment, operating cash flow, debt, financial risk, financial management.
• Subjects: E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; G - Financial Economics > G3 - Corporate Finance and Governance > G31 - Capital Budgeting ; Fixed Investment and Inventory Studies ; Capacity

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