DOI: https://doi.org/10.15587/2312-8372.2017.113161

Financial equilibrium as basis for enterprise’s sustainable development: economic and mathematical foundation

Tetiana Gudz

Abstract


Using correlation-regression analysis the impact of financial equilibrium on the sustainable development of the enterprise is investigated. The current insufficient level of methodology for assessing enterprise’s sustainable development causes scientific search for its diagnosis’s special tools. Relationship between enterprise’s sustainable development and its financial situation is poorly researched. The economic-mathematical model of financial equilibrium’s impact on enterprise’s sustainable development is developed. It is described by influence of four factors on financial potential’s internal growth ratio, which is an indicator of enterprise’s sustainable development. Influencing factors are first and second indicators of financial equilibrium, financial leverages in assets and capital. The economic-mathematical model of the relationship between the coefficient of internal growth of the financial potential of the enterprise and the indicators of its financial equilibrium is developed. The obtained economic-mathematical model allows to predict the tendency of sustainable development depending on the actual establishment of enterprise’s financial equilibrium as well as to model the probable changes in its financial status. Application of the economic-mathematical model is aimed at improving quality level of enterprise’s financial management.


Keywords


financial equilibrium; sustainable development; financial potential; financial leverage; economic-mathematical model

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References


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GOST Style Citations


Belolipetskii, V. G. Finansovoe ravnovesie v usloviiah rynochnoi transformatsii ekonomiki Rossii [Text]: Dissertation of the Doctor of Economics / V. G. Belolipetskii. – Moscow: Lomonosov Moscow State University, 2002. – 563 p.

Dhaliwal, D. S. Institutional Investors, Financial Health, and Equity Valuation [Text] / D. S. Dhaliwal, O. Z. Li, H. Xie // Asia-Pacific Journal of Accounting & Economics. – 2010. – Vol. 17, No. 2. – P. 151–173. doi:10.1080/16081625.2010.9720858

Liang, F. S. Financial Health & Corporate Performance – a Comparison of Manufacturing Companies in China & India [Text] / F. S. Liang, S. Pathak // Journal of Asian Development. – 2016. – Vol. 2, No. 1. – P. 18–29. doi:10.5296/jad.v2i1.9414

Hur-Yagba, A. A. Analyzing Financial Health of Manufacturing Companies in Nigeria Using Multiple Discriminate Analysis [Text] / A. A. Hur-Yagba, I. F. Okeji, B. Ayuba // International Journal of Managerial Studies and Research. – 2015. – Vol. 3, No. 7. – P. 72–81.

Kocisova, K. Discriminant Analysis as a Tool for Forecasting Company’s Financial Health [Text] / K. Kocisova, M. Misankova // Procedia – Social and Behavioral Sciences. – 2014. – Vol. 110. – P. 1148–1157. doi:10.1016/j.sbspro.2013.12.961

Blank, I. A. Finansovaia strategiia predpriiatiia [Text] / I. A. Blank. – Kyiv: Elga, Nika-Tsentr, 2004. – 720 p.

Blank, I. A. Upravlenie denezhnymi potokami [Text] / I. A. Blank. – Kyiv: Nika-Tsentr, Elga, 2002. – 736 p.

Roome, N. J. Sustainable development in an industrial enterprise: the case of Ontario Hydro [Text] / N. J. Roome, R. Bergin // Business Process Management Journal. – 2006. – Vol. 12, No. 6. – P. 696–721. doi:10.1108/14637150610710882

Vasiutkina, N. V. Upravlinnia stalym rozvytkom pidpryiemstv: teoretyko-metolohichnyi aspekt [Text]: Monograph / N. V. Vasiutkina. – Kyiv: Lira-K, 2014. – 334 p.

Dvorakova, L. Integration of Sustainable Development at Enterprise Level [Text] / L. Dvorakova, J. Zborkova // Procedia Engineering. – 2014. – Vol. 69. – P. 686–695. doi:10.1016/j.proeng.2014.03.043

Roomi, M. S. Bankruptcy Prediction for Non-Financial Firms of Pakistan [Text] / M. S. Roomi, W. Ahmad, M. Ramzan, M. Zia-ur-Rehman // International Journal of Accounting and Financial Reporting. – 2015. – Vol. 5, No. 2. – P. 26–37. doi:10.5296/ijafr.v5i2.7782

Uchenna, A. W. Predicting Corporate Business Failure in the Nigerian Manufacturing Industry [Text] / A. W. Uchenna, U. D. Okelue // European Journal of Business and Management. – 2012. – Vol. 4, No. 10. – P. 86–94.

Richna finansova zvitnist mashynobudivnykh pidpryiemstv Ukrainy stanom na 01 sichnia 2017 r. [Electronic resource] // Website of the Agency for the Development of the Ukrainian Stock Market Infrastructure. – Available at: \www/URL: https://smida.gov.ua/db/emitent







Copyright (c) 2017 Tetiana Gudz

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ISSN (print) 2664-9969, ISSN (on-line) 2706-5448