INTRODUCTION single minor fault in financial aspect

INTRODUCTIONNowadays, company CEO’s andother heads need to take fast decision making in a right way, without anyerrors. Also they need to be careful in monetary terms, since a single minorfault in financial aspect and fraud in money aspect would spoil the name and futurefor not only the company, but also for the stakeholders of the entire company(as in the case of satyam scandal 10 years before). Hence, analytics whenimplemented in finance benefits a lot and makes them time saving. Some of thearticles are discussed below where analytics are used in various places likeauditing, bankruptcy, etc.,LITERATURE REVIEWCao et al (2015), cameup with a study how big data analytics is used in audits, its characteristicsand issues in implementing analytics for financial purposes like auditing. Theyhave mentioned that analytics can be used in auditing fields to manage therisks of bankruptcy, to prevent the risks of material misstatement. Analyticswere used in predicting the averages in Dow Jones Industrial Average (DJIA),where the shifts were predicted three days ahead. Walmart used customersdemographics and managed inventories like selling a day breakfast duringunfavourable climatic conditions to their customers, which increased the salesto seven fold times.

Ayata’s Prescriptive Analytics uses analytics to drill oilby combining all sources of data like images, texts, structured andunstructured, retrieved information like images from well logs, drillingoperations sound, videos of fluid flows from hydraulic fractures, text fromdriller’s notes, and quantifiable data (numbers) from production reports andare progressing well and good. The paper also discussed the biggest challengesof financial analytics, where financial analytics may generate false positivesand hence it should identify its anomalies correctly and implement them.,(2015), pointed out few ideas which can help financial managers to addvalue and ways to implement them.

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Obtain top management sponsorship to get astrong support, the need of information should be understood and should knowwhat questions need to be answered, full range of available advanced analyticcapabilities should be understood, comprehensive gap analysis should beperformed to understand where our data reside, barriers and other privacy lawsshould be discussed, to define your transformation strategy and to buy-in thestakeholder where the author highlighted to start small and further enhance bybuilding upon initial success, keep building capacity by trial and error andnot to do the entire work in one day, keep checking if the data that gotconverted into information adds value to the company, Constantly revaluation ofthe performed works should be done, and to accept all these modifications aschange management. Drew,(2016) suggested that the local government faced the problems of financialsustainability where reformation of financial data was in need. Hence factoranalysis were applied to financial ratio’s, Financial flexibilitylike operating ratio and Own Source Operating Revenue ratio, Cash expense,Unrestricted Current, Debt Service Cover and Interest Cover ratios and AssetRenewal and Capital Works like Infrastructure Backlog, Asset Maintenance, AssetRenewal and Capital Expenditure ratios, were summarised as a single financial sustainabilityassessment ranging through ‘very weak’, ‘weak’, ‘moderate’, ‘sound’, ‘strong’to ‘very strong’.

All these ratio’s were done with regression analysis andfound the correlation between the ratio’s with the latent factors like population size, numberof employing businesses and population density would be statisticallysignificant regressors for econometric models employing the dominant factorloadings as regressands. It was found that three  major latent factors driving the observedfinancial  sustainability ratios whichprompted the reform process in the first place. Another important finding wasthat the three factors – scale anddensity, legacy and management competency acts independently. Deborah magliozzi(2017) done an empirical research study that analyses the economic andfinancial aspects of national telecom operators in Europe through theconstruction of appropriate financial strategic maps profitability map permarket share, Financial autonomy map, Capital expenditure cover map, Currentmap, Liquidity mar for Telecom Italia (Italy),British Telecom (U.

K.), France Telecom (France), Deutsche Telekom (Germany),KPN (Holland), Telefonica de Espana (Spain) and Portugal Telecom (Portugal).Financial analysis of the operators were done using regression and maps wereformulated where the standard regression equation were done to identify theuniformity and standard deviation of all the operators in each and everyfinancial aspects like current assets, liabilities, etc.,  Rafal, (2016),analysed changes between a chosen worldstock market and the constructed synthetic index. He proved the dependencebetween the synthetic stock market index and other stock markets is increasingwhen there is rapid decrease in value of stock market indexes. Contagion infinancial markets were verified through positive verification. They proved thecontagious nature of stock markets to the world economy by proving that thedecline of stock market in US is delayed by about one-three months. They alsoindicated that contagious nature of can be well measured by the taxonomic index and aconditional concordance.

 Beck, torre (2007) pointed out thatprice and income level were the economic determinants of the demand forpayments and savings services. Economic development along with the associatedrise in per capita income increases the need for more and more sophisticatedversions of these services. However, demand is not only driven by economic butalso by socio-cultural factors. Further, we have to isolate pure demand factorsfrom demand reductions that are due to the expectation of supply constraints.In the following, we will distinguish between two demand curves—a potentialdemand curve, driven purely by economic factors, and an actual demand curve,that might be below the potential one due to non-economic factors. We can writethe potential (individual or aggregate) demand as D? = f{income, price},with demand increasing in the first argument and decreasing in the second. Theactual demand can be lower than potential demand for a given price and incomelevel, due to self-exclusion arising from such non-economic reasons asfinancial illiteracy and ethnic or religious factors.

 Kirca, et,al., (2011) used sampling method of four stage procedure for his meta-analysisof 120 independent samples where, around in 111 studies, the predictions ofinternalization theory was done from the context of the multi-nationality performancerelationship, which provided an efficient organizational enabling firms togenerate higher returns in international markets by transferring theirfirm-specific assets. Independent variables: R&D intensity and advertisingintensity, dependent variable:multi-nationality. Organizational variables: firm international experience,age, and size. From the meta-analytic evidence, they came to know thatmultinationality had intrinsic values at the limit beyond the firm’s intangibleassets.

 Flood (2009) discussedabout meta-data, where financialinnovation, modelrisk, and strategic policy evolutioncreates a very unstable data integration environment for risk managementanalytics. They also discussed about the costs involved in managing meta-data,such as specification and mapping costs, did scaling of the costs in a computersoftware, and finally They proposed design with two main features, where thefirst one centralizes metadata in a numeraire specification, to linearize themapping costs and second one it introduces an ontological structure and anontology editor to expose the metadata to financial analysts for on-the-flyediting.  Telli., et al., (2008) studies the two sectoraladjustments (real and financial) of the Turkish economy. Because, turkey wasfacing with failed reforms and deterioriated performance of macro-economy forthe past 10 years.

Hence, under the conditionalities of the ‘twin targets’ suchas primary surplus to gross national product (GNP) ratio and on inflation rate,the major three issues were rolled out: the role of the expanded foreigncapital inflows in resolving the macroeconomic issue of the disinflation motivesof the central bank and imperatives of debt sustainability and fiscalcredibility of the ministry of finance, and reduction of the central bank’sinterest rates, and reducing payroll taxes in labor market reforms. post-2001 expansion was observed to be concomitant with aexternal disequilibrium and fragility and the output growth contrasts withpersistent unemployment. 


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