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Economic Consequences Of Financial Stability Violation Of World Automotive Corporations

Author

Listed:
  • Sergyi Smerichevskyi

    (Department of Marketing, National Aviation University, Ukraine)

  • Ihor Kryvoviaziuk

    (Department of Entrepreneurship, Trade and Stock Exchange Activity, Lutsk National Technical University, Ukraine)

  • Larysa Raicheva

    (Department of Business Administration and Corporate Security, International Humanitarian University, Ukraine)

Abstract

The purpose of the paper is to determine the state of automotive corporations' financial stability and to generalize the consequences of its violation for their activity and the global economy as a whole. Methods. The theoretical and methodological basis of the research is the scientific works in the field of corporate finance management and strategic development that studied analysing and evaluating the financial stability of corporate companies, maintaining their financial stability in the medium and long term, official statistics data of United Nations Conference on Trade and Development, financial statements of corporations Toyota Motor Corporation (Japan), Mercedes-Benz (Germany), and Tesla Motors (USA), own research results. The methodological basis of the study is a set of general scientific and special methods used to achieve the research goal: theoretical generalization, analysis and synthesis - in studying the content of scientific works on the research of financial stability of corporate companies and maintaining their financial stability; observation -to obtain primary information about the state of the world automotive market; the method of coefficient analysis and typing the situations - to assess the financial stability of automotive corporations; analytical - in determining the economic consequences of financial stability violation of automotive corporations; causation - to obtain final conclusions. Results. This article deals with the development of automotive industry in the world. The financial stability of leading automotive corporations is evaluated. The economic consequences of financial stability violation of automotive corporations are summarized. Financial strategies to improve the financial stability of automotive corporations are proposed. Practical value. The results of the study may be useful to the United Nations Conference on Trade and Development, the financial management of Toyota Motor Corporation, Mercedes-Benz and Tesla Motors. Value/originality - the state of financial stability of automotive corporations is determined and the consequences of its violation for their activity and the world economy as a whole are generalized. Further research should be directed towards the development of project measures to improve the financial stability of automotive corporations in the world.

Suggested Citation

  • Sergyi Smerichevskyi & Ihor Kryvoviaziuk & Larysa Raicheva, 2018. "Economic Consequences Of Financial Stability Violation Of World Automotive Corporations," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(2).
    • Handle: RePEc:bal:journl:2256-0742:2018:4:2:33
    DOI: 10.30525/2256-0742/2018-4-2-229-234
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    References listed on IDEAS

    as
    1. He, Kathy S. & Morck, Randall & Yeung, Bernard, 2003. "Corporate Stability and Economic Growth," CEI Working Paper Series 2003-12, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Michaely, Roni & Popadak, Jillian & Vincent, Christopher, 2015. "The Deleveraging of U.S. Firms and Institutional Investors’ Role," MPRA Paper 66128, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial stability; evaluating; automotive development; corporation; economic consequences; financial strategy;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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