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Mechanism of formation of financial security of an enterprise

Author

Listed:
  • Andrii Ramskyi
  • Artem Solon'ko

    (Borys Grinchenko Kyiv University)

Abstract

The article deals with the definition of financial security. Factors of the formation of its mechanism are identified. The objects and subjects of formation of the mechanism of financial security are shown and the principles and functions of the mechanism of financial security are disclosed. The research of existing theoretical approaches for determination of necessary conceptual apparatus is carried out. The analysis of the issue of the mechanism of formation of financial security of an enterprise and the review of the studies of domestic scientists and practitioners have been conducted. Also the analysis of the aspects of the definition of the structure of the category and the issue of structuring are defined. The role of financial security as a component of the economic security of an enterprise has been studied. The review of the methodical tools for evaluating financial component existing on the micro level has been considered. The category of financial security as a level of provision of enterprises with financial resources to meet their own needs and execute existing liabilities as well as the resistance to internal and external negative influences, characterized by the balance and their ability to provide financial stability, effective functioning and economic growth have been considered. The economic content of the notion "mechanism of formation of financial security of an enterprise" is determined. "Financial and economic mechanism" as a combination of methods, and forms and a tool of exertion of influence on the economic and social stabilization of the enterprise through the state system support, which is founded on an institutional basis is considered. The analysis of the whole set of normative and legal acts, methods, measures, due to which the influence of the subject towards the object for creating security and countering threats is carried out. Investigated and taken into account are theoretical and practical processes of cyclic development of enterprises providing an opportunity for managers to make sound management decisions in the future. Models of behavior of the enterprise that determine its readiness for adaptation as well as models in the context of the company's life cycle are considered. Prospects for further research and issues that require consideration and development of real measures to counteract existing threats are highlighted

Suggested Citation

  • Andrii Ramskyi & Artem Solon'ko, 2018. "Mechanism of formation of financial security of an enterprise," European scientific journal of Economic and Financial innovation, "European Association of Economists", vol. 1, pages 14-20, November.
  • Handle: RePEc:efn:journl:v:1:y:2018:p:14-20
    DOI: 10.32750/2018-0102
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    More about this item

    Keywords

    financial security; formation of financial security; mechanism of financial security;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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