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Modeling Complex Financial Sustainability of a Corporation in the Age of Global Economic Crises
- Source :
- Economic and Social Changes: Facts, Trends, Forecast, Vol 11, Iss 2, Pp 127-143 (2018)
- Publication Year :
- 2018
- Publisher :
- Russian Academy of Sciences, Vologda Research Center, 2018.
-
Abstract
- Currently, the socio-economic content of the concept of sustainable development in relation to enterprises and corporations is actually replaced by a system of managing financial risks of investment, the effect of which aims to prevent a financial crisis. Major financial strategies ceased to be functional; they acquired a role comparable to the corporate economic strategy, and began to control the establishment of criteria of risks and the feasibility of enterprise’s existence. The goal of the present research is to provide methodological support to the process of returning the priority of the financial concept of sustainable development from the sphere of financial growth (permanent capital growth) to the sphere of financial and economic development, by offering a new analytical tool of strategic level that does not contradict the interests of large businesses in its application. Taking into account the great contribution of transnational corporations to the initiation of global crises implemented with the help of stock market tools, the version of the financial-analytical method (visual modeling), which we present in the paper, reduces the dependence of corporate governance on the financial market assessment and directs risk management process in the field of real capital management of associations of enterprises. Stability of development based on the model is achieved by the programmability of the process of changing the special types in the development of complex financial stability, which is a key difference from the existing developments. Gradual qualitative development of a corporation with controlled destabilization rather than the general criterion of capital growth is the target for the formation of strategic and programmable sequences of the onset of complex profiles of financial stability. The sphere of corporate financial management of service enterprises can be considered as the scope of application of the results obtained. At further adaptation of the modeling results it is possible to use the modeling in the management of large corporate associations of practically any branch. The scale of application of the model is connected with the prospects of development of research in this direction
Details
- Language :
- English, Russian
- ISSN :
- 23070331 and 23129824
- Volume :
- 11
- Issue :
- 2
- Database :
- Directory of Open Access Journals
- Journal :
- Economic and Social Changes: Facts, Trends, Forecast
- Publication Type :
- Academic Journal
- Accession number :
- edsdoj.52057bec36c84cf5bff1201e0f14185d
- Document Type :
- article
- Full Text :
- https://doi.org/10.15838/esc.2018.2.56.9