DESCRIBING MANAGERIAL PROCEDURE OF RESISTANCE TO A CORPORATE FINANCIAL CRISIS
DOI:
https://doi.org/10.31498/2225-6407.10.2014.35614Keywords:
crisis, crisis management, crisis resistance, debt restructuring, diagnosis, corporate raiding, methods of corporate raidingAbstract
In the paper there are described preconditions of a corporate financial crisis and there is presented a broadened classification of the existing types of a financial crisis diagnosis. Considering the most acute challenges of management and economic development, the paper deals with a managerial procedure which contains gradual financial and economic measures to resist a corporate financial distress and raiders` methods of takeovers. The purpose of this paper is to consider the launch of a mechanism of taking and optimizing organizational and economic measures which enable resisting financial crisis at an enterprise. The most efficient should be the measures which are aimed at making a proper diagnosis, implementing changes in cost management, increasing sales, working with suppliers, optimizing assets, restructuring debts, raising cash, working with staff, as well as the measures of involving other financial and economic tool in order to overcome undesirable crisis effects. It is outlined the necessity of organizational management of postcrisis phenomena which depends on the aims of managers, organizational structure of an enterprise, etc. In the article there are described those branches of national economy which are the most prone to plunge into a crisis and there is also assessed their attractiveness to corporate raiders. Using the values of certain indicators, the enterprises can influence their policy and be more or less prepared to raiders and takeovers. Among the described raiding methods there are outlined such as: obtaining control over property, buying a holding of shares, pressing debtors using the bank information and semi-legal schemes of privatization of municipal enterprisesReferences
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