IDEAS home Printed from https://ideas.repec.org/a/ags/areint/337436.html
   My bibliography  Save this article

Financial and economic security of agricultural business: specifics, analysis methodology, and measures of stabilization

Author

Listed:
  • Vasyltsiv, Taras
  • Mulska, Olha
  • Hrabynska, Iryna
  • Ivaniuk, Ulana
  • Shopska, Yuliya

Abstract

Purpose. The article aims to improve the methodology and analysis of the financial and economic security of agricultural business in Ukraine for the identification of problematic aspects and the substantiation of policy measures needed to strengthen it. Methodology / approach. The article offers the methodological approach for the comprehensive analysis of the financial and economic security of agricultural business in a region. The conceptual task of the approach is to calculate the empirical indicator of security (composite method) and its structural components (resources, investment, money and credit, debt, finance-economy, and insurance components) based on the identification of the weight of indicators (Principal Components Analysis). Results. The article reveals that the appropriate level of all components of financial and economic security correlates with the financial independence of agricultural entities. In 2018, the index of insurance security (0.798) and money and credit (0.737), debt (0.724), and resources (0.720) components of agricultural business security in Lvivska oblast were above the moderate level. The period of 2018–2022 faced a significant weakening in the resources (by 16.2 p.p.), investment (16.9 p.p.), money and credit (20.6 p.p.), debt (19.0 p.p.), finance-economy (18.0 p.p.), and insurance (5.3 p.p.) components of the sector’s financial and economic security. The average level of financial and economic security in the period under review was 65.0 %, and the average annual rate of decrease was 4.1 p.p. Originality / scientific novelty. The article improves the methodological approach to the complementary assessment of financial and economic security of agricultural business in a region, contributing to the identification of the degree of financial resilience of business entities in the agricultural sector of the regional economy in conditions of war and instability, in order to develop the mechanism for increasing the investment and economic capacity of business. Practical value / implications. The article offers and substantiates an applied approach to assessing the degree of regional financial resilience of agricultural business. Its implementation will allow carrying out a sectoral cut of the state of financial and economic security of the region’s industry and build architectonics of determinants of financial and economic security of business entities.

Suggested Citation

  • Vasyltsiv, Taras & Mulska, Olha & Hrabynska, Iryna & Ivaniuk, Ulana & Shopska, Yuliya, 2023. "Financial and economic security of agricultural business: specifics, analysis methodology, and measures of stabilization," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(2), June.
    • Handle: RePEc:ags:areint:337436
    DOI: 10.22004/ag.econ.337436
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/337436/files/4_Vasyltsiv_article.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.337436?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Serhiy Zabolotnyy & Mirosław Wasilewski, 2019. "The Concept of Financial Sustainability Measurement: A Case of Food Companies from Northern Europe," Sustainability, MDPI, vol. 11(18), pages 1-16, September.
    2. Dokiienko, Larysa & Hrynyuk, Nataliya & Nakonechna, Olena & Mykhailyk, Olga, 2021. "System for evaluation of financial security of operational activity of oil-and-fat industry enterprises," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(4), December.
    3. Kunytska-Iliash, Marta, 2023. "Assessment of the financial security of agriculture in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(1), March.
    4. Anna Blajer-Gołębiewska & Dagmara Wach & Maciej Kos, 2018. "Financial risk information avoidance," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 31(1), pages 521-536, January.
    5. Tetiana Ganushchak, 2017. "Dynamics Of Development Of Financial Safety Of The Enterprise As A Complex Economic Security Of The State," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 3(4).
    6. Nestor Shpak & Ihor Kulyniak & Maryana Gvozd & Jolita Vveinhardt & Natalia Horbal, 2021. "Formulation of Development Strategies for Regional Agricultural Resource Potential: The Ukrainian Case," Resources, MDPI, vol. 10(6), pages 1-30, June.
    7. Anna Florek-Paszkowska & Anna Ujwary-Gil & Bianka Godlewska-DzioboÅ„, 2021. "Business innovation and critical success factors in the era of digital transformation and turbulent times," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 17(4), pages 7-28.
    8. Katarina Valaskova & Pavol Durana & Peter Adamko & Jaroslav Jaros, 2020. "Financial Compass for Slovak Enterprises: Modeling Economic Stability of Agricultural Entities," JRFM, MDPI, vol. 13(5), pages 1-16, May.
    9. ABM Fazle Rahi & Ruzlin Akter & Jeaneth Johansson, 2021. "Do sustainability practices influence financial performance? Evidence from the Nordic financial industry," Accounting Research Journal, Emerald Group Publishing Limited, vol. 35(2), pages 292-314, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kunytska-Iliash, Marta, 2023. "Assessment of the financial security of agriculture in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(1), March.
    2. Claudia Diana Sabău-Popa & Ramona Simut & Laurențiu Droj & Corneliu Cristian Bențe, 2020. "Analyzing Financial Health of the SMES Listed in the AERO Market of Bucharest Stock Exchange Using Principal Component Analysis," Sustainability, MDPI, vol. 12(9), pages 1-15, May.
    3. Nestor Shpak & Solomiya Ohinok & Ihor Kulyniak & W³odzimierz Sroka & Armenia Androniceanu, 2022. "Macroeconomic Indicators and CO2 Emissions in the EU Region," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 817-817, August.
    4. Beata Gavurova & Sylvia Jencova & Radovan Bacik & Marta Miskufova & Stanislav Letkovsky, 2022. "Artificial intelligence in predicting the bankruptcy of non-financial corporations," Oeconomia Copernicana, Institute of Economic Research, vol. 13(4), pages 1215-1251, December.
    5. Roman Vavrek & Ivana Kravčáková Vozárová & Rastislav Kotulič, 2021. "Evaluating the Financial Health of Agricultural Enterprises in the Conditions of the Slovak Republic Using Bankruptcy Models," Agriculture, MDPI, vol. 11(3), pages 1-19, March.
    6. Ning Wu & Jingyi Zhao & Mohammed Musah & Zhiqiang Ma & Lijuan Zhang & Yutong Zhou & Yongzheng Su & Joseph Kwasi Agyemang & Juliana Anyei Asiamah & Siqi Cao & Linnan Yao & Kaodui Li, 2023. "Do Liquidity and Capital Structure Predict Firms’ Financial Sustainability? A Panel Data Analysis on Quoted Non-Financial Establishments in Ghana," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    7. Tanja Dergan & Aneta Ivanovska & Tina Kocjančič & Pietro P. M. Iannetta & Marko Debeljak, 2022. "‘Multi-SWOT’ Multi-Stakeholder-Based Sustainability Assessment Methodology: Applied to Improve Slovenian Legume-Based Agri-Food Chains," Sustainability, MDPI, vol. 14(22), pages 1-26, November.
    8. Muhammad Azeem Qureshi & Fred H. Strønen & Marius Tyseng & Marius Urdal, 2020. "Sustainable Business in Norway: The Firm or the Industry Effect?," Sustainability, MDPI, vol. 12(8), pages 1-13, April.
    9. Dmytro Osiichuk & Mirosław Wasilewski & Serhiy Zabolotnyy, 2021. "The Impact of Independent Supervisory Boards on Transformations in the Energy Sector: Results of an International Longitudinal Study," Energies, MDPI, vol. 14(17), pages 1-19, August.
    10. Jannis Bischof & Andreas Dutzi & Marius Gros, 2022. "Sustainability reporting and risk governance," Journal of Business Economics, Springer, vol. 92(3), pages 349-353, April.
    11. Kim P. Bryceson & Anne Ross, 2020. "Agrifood Chains as Complex Systems and the Role of Informality in Their Sustainability in Small Scale Societies," Sustainability, MDPI, vol. 12(16), pages 1-20, August.
    12. Emilia Herman & Kinga-Emese Zsido, 2023. "The Financial Sustainability of Retail Food SMEs Based on Financial Equilibrium and Financial Performance," Mathematics, MDPI, vol. 11(15), pages 1-26, August.
    13. Nestor Shpak & Solomiya Ohinok & Ihor Kulyniak & Włodzimierz Sroka & Yuriy Fedun & Romualdas Ginevičius & Joanna Cygler, 2022. "CO 2 Emissions and Macroeconomic Indicators: Analysis of the Most Polluted Regions in the World," Energies, MDPI, vol. 15(8), pages 1-22, April.
    14. Yusheng Kong & Mary Donkor & Mohammed Musah & Joseph Akwasi Nkyi & George Oppong Appiagyei Ampong, 2023. "Capital Structure and Corporates Financial Sustainability: Evidence from Listed Non-Financial Entities in Ghana," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    15. Werner Gleißner & Thomas Günther & Christian Walkshäusl, 2022. "Financial sustainability: measurement and empirical evidence," Journal of Business Economics, Springer, vol. 92(3), pages 467-516, April.
    16. Sunghwa Park & Hyunsok Kim & Janghan Kwon & Taeil Kim, 2021. "Empirics of Korean Shipping Companies’ Default Predictions," Risks, MDPI, vol. 9(9), pages 1-17, September.
    17. Dao T. T. Thuy & Truong Quoc Viet & Vu Van Phuc & Thi-Hong-Diep Pham & Nguyen Thi Ngoc Lan & Huong Ho, 2022. "Impact of Leadership Behavior on Entrepreneurship in State-Owned Enterprises: Evidence from Civil Servant Management Aimed at Improving Accountability," Economies, MDPI, vol. 10(10), pages 1-14, October.
    18. Fei Hou & Fangnan Liao & Jie Liu & Hao Xiong, 2019. "Signing Auditors’ Foreign Experience and Debt Financing Costs: Evidence for Sustainability of Chinese Listed Companies," Sustainability, MDPI, vol. 11(23), pages 1-19, November.
    19. Luigi Dolores & Maria Macchiaroli & Gianluigi De Mare, 2021. "Sponsorship’s Financial Sustainability for Cultural Conservation and Enhancement Strategies: An Innovative Model for Sponsees and Sponsors," Sustainability, MDPI, vol. 13(16), pages 1-28, August.
    20. Olena Kasian, 2023. "Analysis of factors in managing digital entrepreneurship development in tourism in Ukraine: challenges and opportunities," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 4(4(72)), pages 12-19, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:areint:337436. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://are-journal.com/are .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.