Systemic factors of projected financial potential of business entities

Economic Annals-ХХI: Volume 161, Issue 9-10, Pages: 61-65

Citation information:
Trusova, N. (2016). Systemic factors of projected financial potential of business entities. Economic Annals-XXI, 161(9-10), 61-65. doi: https://doi.org/10.21003/ea.V161-14

Natalia Trusova
D.Sc. (Economics),
Associate Professor,
Tavria State Agrotechnological University
18 B. Khmelnitskyi Ave., Melitopol, 72310, Ukraine
trusova_natalya5@rambler.ru

Systemic factors of projected financial potential of business entities

Abstract. The main prerequisite of forecasting the level of financial potential is the knowledge of financial activity of business entities. This becomes possible if the material basis of the financial potential is identified in the form of an isolated system, which consists of a definite number of elements and has distinct properties of financial resources. The algorithm of forecasting the level of financial potential is developed through a sequence of phases of cost management of financial flows of 2,276 agricultural business entities located in Zaporizhzhya, Kherson and Mykolaiv regions that specialise in crop production in 2009-2015. The implementation of the algorithm is performed by means of forecasting the movement of financial flows, speed and changes in the cost of formation of financial flows, as well as by determining the real cost of cash flows based on inflation losses, depreciation, exchange rate fluctuations in the internal and external markets. It was established that the accumulated liquid financial resources and a continuous increase in cash receipts of the studied enterprises can be considered satisfactory, however the nominal quantity of financial flows with regard to their strength and likelihood of change in their value over time indicates a gradual deterioration of fiscal balance and a slowdown in the formation of investment income of business entities. It has been determined that the synchronisation of cash inflows and outflows accelerates the flow of financial resources, capitalises the temporarily free balance and makes it possible to conduct investment operations with regard to possible terms of return and risks of financial activities of business entities. The author has proposed an appropriate model which statistical quality, value and reliability is sufficient for the use in forecasting the level of financial potential of agricultural entities.

Keywords: Financial Resources; Financial Potential; Financial Projecting; Cost Management of Financial Flows; Business Entities

JEL Classification: G11; G14; G17; О22

DOI: https://doi.org/10.21003/ea.V161-14

References

1. Robinson, L. J., Barry, P. J., Klibenstein, J. B., & Patrick, G. F. (1984). Risk attitudes: Concepts and measurement Approaches. In P. J. Barry (Eds) Risk management in agriculture, 1-2, 11-30. Iowa: Iowa State University Press.
2. McGrath, R. G., & Macmillan, I. C. (1995). Discovery driven planning. Harvard Business Review, 73(4), 44-54.
   Retrieved from https://hbr.org/1995/07/discovery-driven-planning
3. Brighkhem, E. (1997). Fundamentals of Financial Management. Kyiv: Molod (in Ukr.).
4. Basovskiy, L. Ye. (2004). Forecasting and Planning in Market Conditions. Moscow: INFRA-M (in Russ.).
5. Bernar, I., & Kolli, Zh.-K. (2003). Assessment of the Region Financial Capacity.
   Retrieved from http://www.rusnauka.com (in Russ.)
6. Boronos, V. H. (2011). Methodological Principles of the Financial Potential of the Territory. Sumy: Sumy State University (in Ukr.).
7. Heiets, V. (2009). Macroeconomic Assessment of the Monetary and Exchange Rate Policy in Ukraine Before and During the Financial Crisis. Ekonomika Ukrajiny (Economy of Ukraine), 2, 5-23 (in Ukr.).
8. Kramarenko, H. O. (2003). Financial Analysis and Planning. Kyiv: Centr navchalnoi literatury (in Ukr.).
9. Chesbrough, H. (2010). Business Model Innovation: Opportunities and Barriers. Long Range Planning, 43, 354-363.
   doi: https://doi.org/10.1016/j.lrp.2009.07.010
10. Lan Joe (2014). Calculating Intrinsic Value With the Dividend Growth Model. American Association of Individual Investors Journal.
    Retrieved from http://www.aaii.com/journal/article/calculating-intrinsic-value-with-the-dividend-growth-model
11. Leyfer, L. A. (2003). Company Valuation. Analysis of Various Methods of Using the Income Approach. Korporativnyy menedzhment URL.
    Retrieved from http://www.cfin.ru/finanalysis/value/revenue_analysis.shtml (in Russ.)
12. Gaspar, J., Vasconcelos, P. B., & Afonso, O. (2014). Economic growth and multiple equilibria: A critical note. Economic Modelling, 36, 157-160.
    doi: https://doi.org/10.1016/j.econmod.2013.09.037
13. Lagerkvist, C. J. (2005). Assessing farmers’ risk attitudes based on economic, social, personal, and environmental sources of risk: evidence from Sweden. American Agricultural Economics Association. Annual Meeting, July 24-27, Providence, Rhode Island.
    Retrieved from http://ageconsearch.umn.edu/handle/19361
14. Krysak, Ya. V. (2009). Mathematical Finance. Fіnancial Flows. Kyiv: NAU-druk Publishing (in Ukr.).
15. Orekhov, S. A. (2010). Current Assets of Corporate Entities: Theoretical and Practical Aspects of Statistical Analysis. Moscow: BUKVITSA (in Russ.).
16. The European Fund for Southeast Europe (EFSE) (2013). The Research on Potential of Agriculture Financing in Ukraine.
    Retrieved from http://www.efse.lu/news-events/news/detail/efse-workshop-on-the-potential-for-agricultural-finance-in-ukraine-local-financial-institutions-and-agricultural-producers-came-together-to-discuss-how-to-further-unleash-the-high-potential-of-agricultural-finance-in-ukraine
17. Frederik, S., Panchyshyn, S., Stasyshyn, A. & Stebliy. G. (2009). Economics of Money, Banking and Financial Markets. InS. Frederik (Ed). Kyiv: Osnovy (in Ukr.).

Received 30.09.2016