Theoretical Approaches to Defining the Financial Sustainability of Enterprises
Journal Title: Бізнес Інформ - Year 2015, Vol 10, Issue 0
Abstract
The aim of this article is to explore approaches to defining the concept of «financial stability» and to develop an integrated approach to understanding the essence of the financial sustainability of enterprises. The available approaches to measuring the economic content of financial stability were analyzed, on the basis of which the key characteristics of the specified definition in the context of various scientific approaches were allocated. Various interpretations of the meaning of the concept of «financial stability» were systematized through the common characteristics in the following four approaches: ability to withstand shocks, ability to be solvent, ability to function effectively, ability to be financially sustainable and provide balance. On the basis of the presented approaches has been substantiated that components of the financial stability of enterprises are: protectability against crisis developments, efficiency of operation, financial stability and balance. In general, the results of the study, as reflected in the article, provide a basis for the further development of methods for estimating the level of financial stability of enterprises, determining factors of influence and developing managerial decisions for its increase.
Authors and Affiliations
Iryna Vakhovych
Keywords
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