scholarly journals FACTORS ENSURING ENTERPRISE FINANCIAL STABILITY IN TIMES OF CRISIS

2020 ◽  
Vol 139 (5) ◽  
pp. 121-129
Author(s):  
Iryna M. Miahkykh ◽  
Mariana S. Shkoda ◽  
Andrii О. Radchenko
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Company Performance ◽  
Internal Environment ◽  
Working Capital ◽  
Negative Effects ◽  
Effective Response ◽  
Factors Affecting ◽  
Financial Position ◽  
A Company

The insufficiency or lack of available diagnostic instruments to predict the probability of a company bankruptcy is associated with the absence of practices to capture downturn trends in financial and business performances which translates into a dangerous process of latent transition from the company temporary local inability into the total failure to meet its obligations, that is, to a loss of financial stability. The fundamental premises of this study is to identify the factors that ensure financial stability of an enterprise. To attain the research objectives, the method of statistical analysis and logical generalization has been employed to consider a pull of enterprises that are losing their solvency and are on the verge of bankruptcy; a substrate approach was implemented to justify and group a range of internal and external factors affecting the enterprise financial stability. This article argues that a critical indicator in evaluation of a company performance is assessing its financial position which affects its competitiveness, and guarantees to all parties and business participants (both the enterprise and partners) that the realization of common economic interests will be effective. The company financial and economic position when its solvency remains constant over time together with an optimal ratio of equity to debt capital is a certain indicator of a company financial stability. Most analytical studies on enterprise financial stability view the amount, allocation and use of working capital as the most significant indicators, their accounting provides further opportunities to evaluate financial stability and financial position of an enterprise, as well as to identify potential problems and concerns that will lay the basis for choosing a relevant crisis management strategy aimed at designing and implementing effective pathways to respond to crisis. Undoubtedly, it is advisable to obtain an aggregated index that takes into account all the enterprise activities. Such index should include the following indicators: working capital availability; return on capital; independence on external financing. Thus, the essential factors in enhancing the enterprise financial management in a market environment are continuous planned analysis and timely diagnosis of changes and trends in the enterprise external and internal environment, as well as timely and maximum effective response to such changes to ensure financial stability and solvency of the enterprise. In the current business realia, characterized by a high level of economic uncertainty, achieving strategic financial goals and ensuring long-term financial stability of an enterprise is impossible without building an effective strategic financial management framework, the integral elements of which are the mechanisms and systems of risk management to prevent a drop in financial stability and mitigate shocks from external and internal environment negative effects on enterprise activity, as well as creating favourable environment for efficient decision making and planned actions to promote enterprise development.

scholarly journals MANAGEMENT OF THE COMPANY'S FINANCES WITH THE OBJECTIVE OF ESTABLISHING SUSTAINABLE CONTINUOUS LIQUIDITY AND FINANCIAL STABILITY UNDER GLOBAL PROCESSES

2021 ◽  
Vol 14 (28) ◽  
Author(s):  
Slobodan Subotić ◽  
Goran Mitrović ◽  
Vitomir Starčević
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Global Market ◽  
Global Changes ◽  
Successful Management ◽  
Current Form ◽  
Financial Position ◽  
Doing Business ◽  
A Company ◽  
Adequate Management

Globalization, in its current form, represents a new dynamic complex, especially when it comes to its implications for the economy and business of economic entities. It manifests its implications not only through competition, but also through economic growth and development. A modern company should provide adequate management that is able to create and develop comparative advantages that will enable it to be actively involved in global market flows. Global changes have conditioned a new way of doing business, and thus a significant turn in the approach to financial management. This has led to changes in the basic economic settings and criteria for successful management and business. The financial position of a company is one of the indicators of the company's success to function in a global and turbulent market environment. Starting from this fact, a practical treatment of this problem and analytical indicators of the financial position of the three dependent production companies operating within the MH Elektroprivreda Republike Srpske will be done. The aim of the research is to show the extent to which the management of these companies has accepted the requirements of global economic processes and adapted their business to them. That is, whether financial management provides a satisfactory level of liquidity and financial stability of these three companies.

scholarly journals Integral Analysis of RCA of Irkutsk Region Companies

2021 ◽  
Vol 110 ◽  
pp. 01003
Author(s):  
Evgeniy A. Filatov
Keyword(s):  
Financial Stability ◽  
Raw Materials ◽  
Working Capital ◽  
Factors Affecting ◽  
Accounts Receivable ◽  
Successful Solution ◽  
Methodical Approach ◽  
Irkutsk Region ◽  
The Russian Federation ◽  
A Company

The financial position of a company depends on its liquidity, or otherwise, on how soon the funds invested in the assets turn into real money. The growth of non-payments complicates the company’s rhythmic activities (purchase of raw materials, payment of labor and other expenses generated from revenue) and leads to an increase in accounts receivable. At the same time, excessive diversion of funds to production stocks, work in progress, finished products, etc. leads to the deadening of resources and inefficient use of working capital. Successful solution of the problem of working capital optimization can significantly increase the financial stability of the company, refinance and repay the debt, and significantly facilitate debt restructuring. Therefore, effective management of the company’s working capital is the key to increasing the turnover of property and sales volumes. It involves not only the search for and attraction of additional sources of financing, but also their rational placement in the current assets of the company. The article presents the author’s model of analyzing the profitability of working capital. The article reveals the influence of factors affecting the profitability of working capital and author’s methodical approach to his calculations (method # 2 integral factor analysis, developed by Filatov E.A.). The article presents the author’s analytical, systematic statistical analysis of key performance indicators reveal the influence to change the profitability of working capital of the companies in the Irkutsk region of the Russian Federation.

DIRECTIONS FOR DEVELOPMENT OF ANTI-CRISIS FINANCIAL MANAGEMENT

2017 ◽  
Author(s):  
Liubov Iarova ◽  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Enterprise Management ◽  
Factors Affecting ◽  
Financial Condition ◽  
Flexible Response ◽  
Relevant Topic ◽  
Potential Risks ◽  
Negative Factors ◽  
Theoretical Foundations

For continuous performance, enterprises should not only take into account potential risks and existing negative factors, but also develop methods and principles that allow timely and flexible response to crisis occurrences, as well as determine the recovery stages in an already deteriorated financial condition. Given tasks are solved by anti-crisis financial management, designed to increase the efficiency of enterprise management and facilitate the equalization or improvement of an economic entity’s financial stability, therefore, the directions of its development are a rather relevant topic in a market economy. The article examines the theoretical foundations of anti-crisis financial management, the main factors affecting the emergence of a crisis state at an enterprise, discusses the need for its development, and provides factors that determine the effectiveness of the implemented anti-crisis policy. Identifying the need to improve anti-crisis financial management and decision-making on its implementation are accompanied by an analysis that takes into consideration possible risks and costs, which determines the expected effect. The author generalizes and indicates the main principles and stages of anti- crisis management.

scholarly journals TO IMPROVE THE ANALYSIS OF THE FINANCIAL SECURITY OF THE BUSINESS IN GEORGIAN ENTERPRISES

2020 ◽  
pp. 135-147
Author(s):  
IZOLDA CHILADZE
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Factor Model ◽  
Limited Liability ◽  
Sustainable Growth ◽  
Sustainable Business ◽  
Growth Trend ◽  
Factors Affecting ◽  
The Stability ◽  
And Control

The purpose of this paper is to improve the analysis of the financial stability of enterprises and to identify the key factors affecting the establishment of the sustainable growth trend of enterprises (except the financial sector) in Georgia. Answering the question: what financial challenges do enterprises in Georgia face today and be designed consequently, recommendations for strengthening the financial stability of enterprises should be developed in Georgia, increasing solvency and mitigating bankruptcy risks? The necessity for the financial stability of enterprises is becoming increasingly important both for sustainable business growth and for the stability of the international financial market.The subject of the study is the financial positions and financial results of the analytical enterprises. The first and second categories of joint-stock companies of Georgia and limited liability companies were selected as the research objects. Ten enterprises in total. The research methodology includes methods of economic and statistical analysis, factor analysis, vertical, horizontal, proportional and ratio analysis.In order to improve financial management and control, the paper presents multi-factor models of several indicators created by the author. These are: the tree-factor model the coefficient of the organic structure of capital, an eight-factor model of profitability and a six-factor model of the Financial leverage. The paper conducts practical research on the example of ten Georgian companies and concludes that the main challenges in today›s Georgia are the dangers of losing financial stability and bankruptcy. The reason for such a tense financial situation is not a «Corona-19». According to the author, the main reasons for the instability of enterprises in Georgia are: The Irresponsibility of business owners and management, low management professionalism and hidden flows of cash resources.

scholarly journals An Analysis of Factors Affecting the Company Performance in Creating the Competitiveness of Furniture and Printing Small-Sized Enterprises in Jayapura City

2015 ◽  
Vol 6 (1) ◽  
pp. 46-55
Author(s):  
Mugiati Mugiati
Keyword(s):  
Resource Management ◽  
Human Resource Management ◽  
Financial Performance ◽  
Human Resource ◽  
Government Policy ◽  
Structural Equation ◽  
Equation Modeling ◽  
Company Performance ◽  
Working Capital ◽  
Factors Affecting

This study aims to identify and analyze the influence of human resource management, production, marketing, working capital, organization, government policy, and competitor on the financial performance and competitiveness of Small-sized enterprise in Jayapura City. Data collection methods used were observation, interviews, and questionnaires, the number of samples is 258 Small-sized enterprises in Jayapura. Data were analyzed by applying SEM (structural equation modeling analysis method by making use of Amos Software. The results showed that the factors of production and government policy factors affect the financial performance and competitiveness of small-sized enterprise in Jayapura. While human resource management, marketing, organization and competitors factors affect the financial performance of small-sized enterprise in Jayapura, but does not affect the competitiveness of small-sized enterprise in Jayapura and working capital factor does not affect the financial performance of small-sized enterprise in Jayapura but affect the competitiveness of small-sized enterprise in Jayapura. Then the financial performance factor affects the competitiveness of small-sized enterprise in Jayapura.

scholarly journals Prediction of Financial Health of Business Entities of Selected Sector Using Balance Analysis II. by Rudolf Doucha and Verification of Its Predictive Ability through ROC

2021 ◽  
Vol 91 ◽  
pp. 01006
Author(s):  
Dusan Karpac ◽  
Viera Bartosova
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Prediction Models ◽  
Predictive Ability ◽  
Business Failure ◽  
Financial Health ◽  
Balance Analysis ◽  
Business Entities ◽  
The Given ◽  
A Company

Forecasting business failure is a worldwide known term, in a global notion, and there is a lot of prediction models constructed to compute financial health of a company and, by that, state whether a company inclines to financial boom or bankruptcy. A healthy financial management of a business entity is very important for the proper operation of the business, and it is therefore very important to know how to assess financial health and to anticipate possible problems that will be easier to eliminate in advance. Globalized prediction models compute financial health of companies, but the vast majority of models predicting business failure are constructed solely for the conditions of a particular country or even just for a specific sector of a national economy. Predictive models can indicate whether an entity tends to prosper or bankruptcy, and so we can assess the financial health of the business. This paper provides a description of the balance analysis II. by Rudolf Doucha, discusses its application to a sample of 266 Slovak subjects and points to its prediction in the given field. The verification of the ability to forecast bankruptcy or financial stability has been evaluated through ROC analysis.

scholarly journals OPTIMIZATION OF FINANCIAL STABILITY OF THE ENTERPRISES AGRARIAN BUSINESS OF THE REGION

2018 ◽  
Vol 6 (4) ◽  
pp. 6-10
Author(s):  
Николай Барышников ◽  
Nikolay Baryshnikov ◽  
Денис Самыгин ◽  
Denis Samygin ◽  
Наталья Толмачева ◽  
...  
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Industrial Complex ◽  
Considerable Part ◽  
Agricultural Enterprises ◽  
Agrarian Sector ◽  
Financial Position ◽  
Agrarian Policy ◽  
Time Availability ◽  
Stimulation Of

The problem of increase in financial stability of the enterprises of agrarian business designated by the state priorities of stimulation of investment attractiveness of agriculture rises. It is shown that the applied measures of state support are directed only to creation of conditions on attraction to the agrarian sector of loan resources, but poorly influence increase in financial stability of producers and do not guarantee them approval of the credit application from bank. It is revealed that the main share of support of crediting is received by large agroholdings, a considerable part of farms is deprived of such means. Need of a different approach to realization of agrarian policy on increase in availability of the credit and corresponding to them budgetary resources on the basis of optimization of financial stability of agricultural enterprises is proved. On the example of the agricultural organizations of the Penza region with use of methods of financial management and the econometric analysis, diagnostics of a financial position is carried out, regularities are revealed, admissible parameters are determined and strategic solutions on optimization of financial stability of subjects of agrarian business are developed. The received results will allow to act as a methodological reference point for bodies of authority and management of agrarian and industrial complex on formation and implementation of policy of increase in financial stability and at the same time availability of means of banking capital.

Research on Influencing Factors of Manufacturing Listed Companies’ Working Capital Policy in China

2014 ◽  
Vol 1028 ◽  
pp. 111-116
Author(s):  
Qiang Hu ◽  
You Qing Wan ◽  
Jie Qiong Wang
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Economic Activity ◽  
Social Economic ◽  
Listed Company ◽  
Panel Data Model ◽  
Internal Environment ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Factors Affecting

At present, the majority of the researches on factors affecting policies of listed company working capital mainly focus on internal environment, which result in the ignorance of the outside condition. However, as the major participant for social economic activity companies, the outside situation will definitely have an influence on the formulation of working capital policy. Therefore, basing on former studies, this paper comprehensively combines inner factors with outside ones, and selects the data from long-standing manufacturing companies, and applies the panel data model in order to figure out how these factors work on companies’ working capital policy.

scholarly journals Financial Stability and Competitiveness as Indicators of Company Performance Efficacy

2020 ◽  
pp. 066-072
Author(s):  
E. S. Kalyuzhnaya ◽  
◽  
V. Yu. Rogozhkina ◽  
E. L. Dmitrieva ◽  
E. V. Bykovskaya ◽  
...  
Keyword(s):  
Financial Stability ◽  
Economic Assessment ◽  
Company Performance ◽  
Management Decisions ◽  
The Real ◽  
Financial Position ◽  
Financial Condition ◽  
The Future ◽  
Real Picture ◽  
The Right

It is shown that the economic assessment of the company performance efficacy is of great importance, both in order to make the right management decisions on emerging problems, and to maximize profits and ensure a stable financial position of the enterprise in the future, and the need to assess the financial condition of both your enterprise and existing potential competitors. Some indicators that characterize the efficacy of the enterprise are considered: financial stability and competitiveness as the most relevant indicators that can reflect the real picture in the activities of any enterprise.

scholarly journals Effect of Customer Satisfaction on Company Performance

2015 ◽  
Vol 63 (3) ◽  
pp. 1013-1021 ◽  
Author(s):  
Petr Suchánek ◽  
Maria Králová
Keyword(s):  
Customer Satisfaction ◽  
Business Performance ◽  
Company Performance ◽  
Factors Affecting ◽  
Product Comparison ◽  
Specific Factors ◽  
The Subject ◽  
The One ◽  
Competitive Products ◽  
A Company

The subject of this article is customer satisfaction and its impact on company performance through satisfaction with its products, including a comparison with the competition. Research was conducted in search of factors which affect customer satisfaction on the one hand and the performance of the company on the other hand. We constructed a model explaining what specific factors (affecting customer satisfaction) have an impact on the performance of a company. This model can help management to better run the business and achieve higher performance. The article is based on research that focused on companies in the food industry in Czech Republic and on their customers. First, we found the financial performance of surveyed companies (based on indicators ROA, ROE and assets turnover) and on this basis they have been divided on companies efficient and inefficient. Furthermore factors were identified (based on previous research of authors) that have an impact on customer satisfaction (among these factors include product quality, customer requirements for product, comparison with competitive products, etc.). With the use of non-parametric statistical methods, logistic regression and discriminant analysis was analyzed, what factors affecting customer satisfaction also affect business performance.

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