Authors retain ownership of the copyright for their content.
PROVISION OF INNOVATIVE DEVELOPMENT BASED ON IMITATIVE VARIATIONS OF FINANCIAL SUSTAINABILITY
Corresponding Author(s) : Irina N. Marchenkova
Humanities & Social Sciences Reviews,
Vol. 7 No. 5 (2019): September
Purpose: In order to strengthen the financial sustainability of an economic entity, it is necessary to optimize the balance sheet structure based on relative values, most of which have generally accepted regulatory restrictions. The coefficients that do not have such standard values are estimated by the dynamics relative to previous periods, as well as similar enterprises of the relevant sector of the economy.
Methodology: To achieve the study objectives, specific methods were used in the work: a comparative analysis of approaches to the algorithms for calculating relative indicators of financial sustainability, a simulation methodology for the optimal balance sheet structure, taking into account the objective function - the financial sustainability coefficient under the established regulatory limitations of the key features of financial development. The main provisions of the study are presented in the form of analytical tables, algorithms, and figures.
Result: The research results showed that, on the basis of the objective function and the limitations of the main financial indicators, it is possible to optimize the balance sheet structure, depending on the planned value of the financial sustainability coefficient established by the business entity, taking into account industry features and a specific reporting period.
Applications: This research can be used for universities, teachers, and students.
Novelty/Originality: In this research, the model of the Provision of Innovative Development Based on Imitative Variations of Financial Sustainability is presented in a comprehensive and complete manner.
Download CitationEndnote/Zotero/Mendeley (RIS)
- Bragg, S. M. (2012). Financial Analysis: A Controller’S Guide, Wiley USA, pp. 416. https://doi.org/10.1002/9781119197737 DOI: https://doi.org/10.1002/9781119197737
- Brauer, M. F. (2013). The effects of short – term and long term oriented managerial behaviour on medium – term financial performance: longitudinal evidence from Europe. Journal of Business Economics and Management, 14(2), 386– 402. https://doi.org/10.3846/16111699.2012.703965 DOI: https://doi.org/10.3846/16111699.2012.703965
- Carlin, T. P., Mc & Meen, A. R. (2006). Analyzyng Financial Statements, by Fourth Edition, American Bankers Association. Washington, pp. 352.
- Chechevitsyna, L. N., & Chechevitsyn, K. V. (2013). Analysis of Financial and Economic Activity: Textbook. Rostov on Don: Feniks, 368 p. (In Russian).
- Dontsova, L. V., & Nikiforova, N. A. (2015). Analysis of Accounting (Financial) Statements: Textbook, M.: Delo i Servis, 159 p. (In Russian).
- Grankin, V. F., Marchenkova, I. N., & Udovikova, A. A. (2017). Innovative Approach to the Formation of the Financial Features of the Reference Dynamics of Enterprise Development. Bulletin of the Kursk State Agricultural Academy, 4, 66-73 (In Russian).
- Lippman, S., & Mc Call, J. An. (1986). Operation Measure of Liquidity. The American Economic Reviw, pp. 235.
- Markaryan, E. A., Gerasimenko G. P., & Markaryan S. E. (2017). Financial Analysis: Textbook. M.: KNORUS, 192 p. (In Russian).
- Methodological Recommendations on the Analysis of Financial and Economic Activities of Organizations (Electronic resource): Approved by the State Statistics Committee of Russia on November 28, 2002 // Reference Legal System “Consultant Plus”. Sec. "Legislation". Inform. Bank "Prof Version" (In Russian).
- Ohlson, J. A. (1980). Financial Ratios and the Probabilistic Prediction of Bankruptcy. Journal of Accounting Research, 18(1), 56-59. https://doi.org/10.2307/2490395 DOI: https://doi.org/10.2307/2490395
- On Amendments to the Accounting Forms of Organizations Approved by the Order of the Ministry of Finance of the Russian Federation No. 66n dated July 2, 2010 (Electronic resource): Order of the Ministry of Finance of the Russian Federation No. 124n dated 05.10.2011 // Reference Legal System “Consultant Plus”. Sec. "Legislation". Inform. Bank "Prof Version" (In Russian).
- On the Forms of Accounting Reporting of Organizations (Electronic resource): Order of the Ministry of Finance of Russia No. 66n dated 02.07.2010 (as amended under No. 41n dated 06.03.2018) // Reference Legal System “Consultant Plus”. Sec. "Legislation". Inform. Bank "Prof Version" (In Russian).
- Savitskaya, G. V. (2016). Comprehensive Analysis of the Economic Activity of the Enterprise: Textbook. Minsk: М.:Infra-М, 608 p. (In Russian). https://doi.org/10.12737/13326 DOI: https://doi.org/10.12737/13326
- Selezneva, N. N. (2012). Analysis of the Financial Statements of the Organization: Study Guide for Universities. Ed.: Yuniti-Dana, 640 p. (In Russian).
- Wilcox, J. W. (1984). The P/B-ROE Valuation Model. Financial Analysts Journal, 40, 58-66. https://doi.org/10.2469/faj.v40.n1.58 DOI: https://doi.org/10.2469/faj.v40.n1.58
- Guedri, Z. (1998). Performance variations among strategic group members in the Pharmaceutical Industry: An examination of individual sustainable growth capabilities, 1995-1997 (Doctoral dissertation, Concordia University).
- Lounsbury, M. (2008). Institutional rationality and practice variation: New directions in the institutional analysis of practice. Accounting, organizations and society, 33(4-5), 349-361. https://doi.org/10.1016/j.aos.2007.04.001 DOI: https://doi.org/10.1016/j.aos.2007.04.001
- Bettinazzi, E. L. M., Massa, L., Neumann, K., & Zollo, M. (2015). Macro-economic crises and corporate sustainability. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 15084). Briarcliff Manor, NY 10510: Academy of Management. https://doi.org/10.5465/ambpp.2015.75 DOI: https://doi.org/10.5465/ambpp.2015.75
- Fahy, J., Hooley, G., Beracs, J., Fonfara, K., & Gabrijan, V. (2003). Privatisation and Sustainable Competitive Advantage in the Emerging Economies of Central Europe1. Management International Review, 43(4), 407.
- Hira, T. K. (2012). Promoting sustainable financial behaviour: implications for education and research. International Journal of Consumer Studies, 36(5), 502-507. https://doi.org/10.1111/j.1470-6431.2012.01115.x DOI: https://doi.org/10.1111/j.1470-6431.2012.01115.x