DBPapers
DOI: 10.5593/sgem2012/s03.v1030

INVESTIGATION INTO HOW SOME COMPANIES PAY FOR TECHNICAL EQUIPMENT OF PRODUCTION

L. KUCEROVA
Wednesday 1 August 2012 by Libadmin2012

References: 12th International Multidisciplinary Scientific GeoConference, www.sgem.org, SGEM2012 Conference Proceedings/ ISSN 1314-2704, June 17-23, 2012, Vol. 1, 631 - 638 pp

ABSTRACT

The investment decision-making and loan policies belong among the top responsibilities
of current managerial practice. The proper implementation of investment policies is
vital for future existence of any company. Such investments concern also the technical
equipment of companies of which the financing is a top priority issue for both theory
and practice. The mining companies are no exception to this rule. What are their
investment policies, how do production companies pay for their technical equipment?
These are the questions, which this paper tries to face and answer, concerning especially
extraction and processing of minerals for building industries. It is the objective of this
paper to provide for clear picture of companies operating in the field of construction
material provision in the Czech Republic; and to find out what are their leasing and
outsourcing policies implemented, in particular, as regards financing of their production
equipment. A questionnaire method of investigation was applied for the purpose. As
many companies as possible were addressed by an electronic form that implied both
explicit and implicit questions. The form was structured into two parts. The first part
comprised of identification data that would classify the companies as regards their
specific mineral extracted. This part further took into account whether the company is a
domestic one or operates from abroad, and what are their export policies if any. The
second part of the questionnaire form concentrated on specific questions. The
companies were asked how they pay for the production equipment concerning four
basic processes (excavation, loading, transportation, processing), and what method of
financing they prefer. The investigation has established that the companies most usually
cover their production equipment expenditure by their own financial resources. In
contrast to this, leasing is a less popular form of financing the matter, especially due to
higher prices of the leasing companies.

Keywords: Questionnaire Investigation, Financing, Investments, Leasing, Outsourcing,
Technological Processes, Credit, Own Resources