ANALYSIS OF THREATS OF ECONOMIC SECURITY OF UKRAINE DUE TO THE RESULTS OF THE IMPACT OF CORPORATE CONSOLIDATION

Abstract

The dynamic development of economic relations at the present stage causes permanent transformation of mechanisms of interaction between business entities. One of the most relevant events in the global economy is a process of mergers and acquisitions of enterprises. The scope of the corporate consolidation causes rapid formation and strengthening of powerful corporations alongside with redistribution between them of the influence on the national resources and markets. Taking into account the absence of comprehensive studieson the impact assessment of mergers and acquisitions businesses to the economic security of the country, the main objective of this paper is to study the parameters of economic security in the context of corporate consolidation and systematization of shortcomings method of calculation of the economic security of Ukraine. Considering the fact that mergers and acquisitions can lead to formation of sufficiently powerful businesses in order to make a significant impact on the economic situation in the region and the country as well as on the elements of opportunism in motivating their members, special attention has been paid to the characterization of threats from mergers and acquisitions to the national economy which appear as a result of these agreements. Among the latter the following components have been highlighted: loss of control over the economy, curtailing the scientific researches and deepening the technological backwardness, declining competitiveness of exporters, intensive exploitationof national resources without regard to national interests. Having analyzed the "Guidelines on the calculation of economic security of Ukraine" in terms of consideration of threats related to mergers and acquisitions businesses, the presence of significant drawbacks has been stated. It has been offered to classify them into general (characteristic of the technique as a tool for assessing the level of economic security) and specific (related to neglecting the impact of mergers and acquisitions on the economic security of Ukraine). It is noted that the current system of economic security is based on the principle of responding to current threats and practically ignores the necessity and the appropriateness of developing and implementing preventive measures. Just as the effective process management of mergers and acquisitions in most cases is possible only at the stage of preparation and conduction of the transaction.