Consideration of non-stationary economy factor in the formation of an optimal fund structure: An industry approach

Maria Vladimirovna Petrovskaya, Natalia A. Zaitseva, Natalya V. Bondarchuk, Ludmila S. Vasilieva, Elena M. Grigorieva

Research output: Contribution to journalArticlepeer-review

Abstract

The relevance of the study of the issues of consideration of the non-stationary economy factor in the optimal enterprise's fund structure formation, taking into account its industry particularity, is explained by the need for scientific and methodological research in this field. Currently, such studies are not insufficient there are no methodological and practical recommendations for solving these problems. The purpose of the article is to develop an integrated model for determining and evaluating the sector financial strategy in a non-stationary economy. The leading method of research used in the preparation of this article was the theoretical-empirical method. In addition, methods of economic-mathematical modeling, economic-statistical and factor analysis, supplemented by methods of logical analysis and modeling, were used. The novelty of the results of the research is the development of a four-component model based on the correlation with the optimal values of four particular criteria that take into account the functioning environment and the specifics of the activity of a particular company in the industry. In addition, the authors of the article substantiated the analytical expression of each of the four criteria of the model and ways to determine their optimal values. The application of the proposed model allows analyzing the effectiveness of an enterprise's current or proposed financial strategy, taking into account its industry specificity, diagnosing its shortcomings and determining ways to eliminate them. The materials of the article are of theoretical importance for research in the field of financial management and optimization of the fund structure. The use of this model in practice as a system of landmarks in the construction of an industry financial strategy in a non-stationary economy will help to obtain more objective financial management decisions in this area.

Original languageEnglish
Pages (from-to)241-249
Number of pages9
JournalMan in India
Volume97
Issue number14
Publication statusPublished - 2017

Keywords

  • Capitalization
  • Financial strategy
  • Fund structure
  • Industry particularity
  • Non-stationary economy
  • Profitability

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