<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Reinvestment decisions are based on basic the economic literacy of entrepreneurs because they do not want to affect future liquidity or development activities. The main goal of the article is to suggest a simple decision tree model to describe profit reinvestments in a general way based on results of a primary pilot study (128 interviews), where reinvestment behaviour is affected by specific factors like risk taking, competitive advantage or business experience. After that a decision-making tree is suggested to explain the process of reinvestment as determined by the manager.</p></abstract>

Reinvestment decisions are based on basic the economic literacy of entrepreneurs because they do not want to affect future liquidity or development activities. The main goal of the article is to suggest a simple decision tree model to describe profit reinvestments in a general way based on results of a primary pilot study (128 interviews), where reinvestment behaviour is affected by specific factors like risk taking, competitive advantage or business experience. After that a decision-making tree is suggested to explain the process of reinvestment as determined by the manager.

Profit Reinvestment: Main Motives Supporting Financial Decisions

Department of Business Economics and Management

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Profit Reinvestment: Main Motives Supporting Financial Decisions"}

Reinvestment decisions are based on basic the economic literacy of entrepreneurs because they do not want to affect future liquidity or development activities....

Profit Reinvestment: Main Motives Supporting Financial Decisions

Published Online: Dec 31, 2019

Page range: 34 - 43

Received: May 22, 2019

Accepted: Nov 08, 2019

DOI: https://doi.org/10.2478/fiqf-2019-0026

Keywords
reinvestment, profit, motivation to reinvest

© 2019 Pavla Pokorná et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Profit Reinvestment: Main Motives Supporting Financial Decisions

Published Online: Dec 31, 2019

Page range: 34 - 43

Received: May 22, 2019

Accepted: Nov 08, 2019

DOI: https://doi.org/10.2478/fiqf-2019-0026

Keywordsreinvestment, profit, motivation to reinvest

© 2019 Pavla Pokorná et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
reinvestment, profit, motivation to reinvest