Structuring of sources of attracting capital to agricultural production as a prerequisite for the formation of an effective investment mechanism in the agricultural sector

Новак, Інна; Вернюк, Наталія Олександрівна; Novak, Yuriy

doi:10.21003/ea.v159-06

Cited by 3 publications

(1 citation statement)

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“…Integrated index of external economic security of the horticultural enterprise (EES) is calculated on the basis of sensitivity of the indexes of the enterprise to changes of macroeconomic and other indicators. Financing of innovation activity; volume of crediting of agrarian enterprises; credits issued by deposit corporations to residents; expenses per household on average per month; consumer price index -this is the list of factors influencing agricultural enterprises, which were proposed by Ukrainian scientists (Nepochatenko, Yermakov, Novak, Kuzina, 2020;Novak, Verniuk, Novak, 2016). The authors will use only some of them.…”

Section: Resultsmentioning

confidence: 99%

Management of Economic Security of Horticultural Enterprises in Ukraine

Zagorodniuk¹,

Gomeniuk

Maliuga

2022

BJES

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The current state of economic security of horticultural enterprises in Ukraine, functioning in the agro-industrial complex of Ukraine, indicates the presence of a large number of internal and external threats that arise in the process of their financial and economic activities. Most horticultural enterprises have an insufficient level of economic security. The purpose of the study is to substantiate the algorithm of economic security management of horticultural enterprises of Ukraine. Methodology. During the study the following methods were used: analysis and synthesis (to critically comprehend the theoretical provisions of economic security); system analysis (to substantiate the economic security management system of horticultural enterprises and its subsystems); expert method (to determine the weights in the integral index of internal economic security of horticultural enterprise); methods of statistical (correlation and regression) analysis (to check the sensitivity of horticultural enterprises of Ukraine to changes in macroeconomic and other indicators); graphic and tabular methods (to visualize the results of the study). Results. The authors pay special attention to the presence of internal and external threats to the economic security of horticultural enterprises. The authors have developed a protocol for managing internal and external economic security of horticultural enterprises as a set of successive stages, which will ensure the achievement of the target level of economic security. The article substantiates the methodological approach to the assessment of internal economic security of horticultural enterprise on the basis of relative indicators, which are combined into five components. The article substantiates methodological approach to the assessment of external economic security of horticultural enterprise on the basis of four macro-indicators. Practical implications. The proposed protocol of economic security management of horticultural enterprise can be used as a technology of enterprise management to ensure its stable development. The proposed method for assessing internal and external economic security can be used by a horticultural enterprise. Value/originality. Improved the theoretical and applied bases of the study of economic security of agricultural enterprises on the example of horticultural enterprises. The methodological foundations of internal and external assessment of the economic security of enterprises were developed. The protocol of economic security management of horticultural enterprise is developed for the first time. The protocol includes interconnected and sequential stages and is adaptive to modern conditions of financial and economic activity of horticultural enterprises.

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Section: Resultsmentioning

confidence: 99%

Management of Economic Security of Horticultural Enterprises in Ukraine

Zagorodniuk¹,

Gomeniuk

Maliuga

2022

BJES

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Structural modeling of the financial support for the Ukrainian agrarian sector

Katan

Dobrovolska²,

Espejo

2018

Investment Management and Financial Innovations

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Financial support for the agrarian sector is the priority of economic policy in many countries of the world, as it plays a key role in achieving the goals of sustainable development, in particular poverty reduction, food security, environmental improvement, including reducing CO2 emissions, reducing water pollution, etc. In the main, the financial support for the agrarian sector of the various countries is multi-channel and combines budget financing and financial market opportunities. At the same time, for many countries, including Ukraine, the issue of the ratio of these sources of financing and their influence on the development of agricultural production remains unresolved. The analysis of budget financing has shown a lack of stability in the implementation of financial support programs for the agrarian sector of Ukraine, which affects the financial sustainability of enterprises and their ability to attract market financing. In the article, using the structural modeling, the necessary amount of financing for the agrarian sector was determined through budget financing, bank lending and agro-insurance. The results of the calculations showed that the actual size of bank lending to agrarian enterprises is significantly lower than the simulated values. At the same time, budget financing creates conditions for ensuring financial sustainability of agrarian enterprises and encourages them to use bank lending, while increasing budget financing reduces the need for agro-insurance operations, which is a negative consequence of its use.

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Formation of analytical tools of capital reproduction in the agricultural sector of Ukraine

Lemishko

2020

Agric. resour. econ.

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Purpose. The purpose of the article is to form analytical tools for the capital reproduction in the agricultural sector of Ukraine’s economy for substantiation of management decisions to ensure its continuous recovery, progressive growth of its value on the basis of positive qualitative changes in capital at its optimal structural proportions. Methodology / approach. Such scientific methods were used in the article to achieve the purpose of the research: structural and logical analysis – to form a holistic conceptual approach to research; comparison – to substantiate the peculiarities of the reproduction of capital at the macro level and in the agricultural sector of the economy; statistical method – for processing information that characterizes the value and structural proportions of capital of economic entities in the agricultural sector of the economy. Results. Elaboration of analytical indicators of the passive part of the balance of economic entities of agriculture, forestry, fisheries of Ukraine revealed that there is an increase of equity capital relative to its cost value, but a decrease in its share in the total capital structure, namely a decrease of cost estimate of equity capital relative to borrowed capital occurs 3.5 times more intensely; during 2010–2018, total capital, equity capital and gross value added of enterprises of the national economy of Ukraine, as well as the agricultural sector of the economy showed sustainable growth, but in the agricultural sector of the economy there was a decrease in the share of gross value added in total capital of enterprises that proved the tendency of potential narrowing the sources of ensuring the reproduction of capital; during the study period, the level of real capitalization in the agricultural sector of Ukraine's economy decreased significantly; dynamic changes in indicators of financial stability of agricultural enterprises confirmed that in 2018 agricultural enterprises were able to finance their assets at the expense of equity by only 49 % (in 2001 – 66%), financial stability of agricultural enterprises in 2018 lagged behind the optimal allowable value by 12 percentage points, in contrast to 2001 (exceeding the optimal allowable value by 3 percentage points), which encouraged an increase of financial risks in agriculture. Originality / scientific novelty. Financial diagnostics of cost and structural characteristics of capital of economic entities in the agricultural sector of Ukraine`s economy revealed that in the agricultural sector there is a paradoxical situation: the dynamics of retained earnings growth in the structure of equity capital, accompanied by declining dynamics of equity in the total amount of total capital and narrowing of cost estimates of equity in relation to GDP. It is proved that the formation of optimal proportions of capital is one of the factors ensuring expanded reproduction of capital, therefore, the mechanism of implementation of financial policy of capital reproduction should be aimed at increasing internal sources of capital formation and optimizing the structure of total capital. Given that the agricultural sector of Ukraine with its basic component, farming, is a system-forming component in the national economy and forms the basis for preserving the sovereignty of the state (food, economic, environmental and energy security within certain limits), we assume that further accumulation of negative trends from the perspective of values and structural proportions of capital in the agricultural sector of Ukraine's economy may be the basis for the acquisition of a state of financial fragility in the economic system as a whole. Practical value / implications. To harmonize certain norms of capital formation of Ukrainian enterprises, it is proposed to take into account the «fixed capital system», enshrined in the second EU Directive and to establish at the legislative level the procedure for capital formation for limited liability companies (LLCs): guaranteed real contribution of authorized capital should be at the level of the cost values of net assets of the company; to consider such level as the minimum admissible.

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Structuring of sources of attracting capital to agricultural production as a prerequisite for the formation of an effective investment mechanism in the agricultural sector

Cited by 3 publications

References 1 publication

Management of Economic Security of Horticultural Enterprises in Ukraine

Management of Economic Security of Horticultural Enterprises in Ukraine

Structural modeling of the financial support for the Ukrainian agrarian sector

Formation of analytical tools of capital reproduction in the agricultural sector of Ukraine

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