INSTITUTIONAL ANALYSIS OF FINANCE VERTICALLY INTEGRATED STRUCTURE IN UKRAINE
Journal Title: Вісник Київського національного університету імені Тараса Шевченка. Економіка. - Year 2014, Vol 1, Issue 154
Abstract
The article defines the content of the economic and institutional conditions of the financial mechanism of vertically integrated structures in Ukraine, considered the organizational form of vertical integration (long-term contracts (agreements ), strategic alliances ( alliances ), outsourcing, virtual corporations, tolling ; contracts (agreements ) with alternative forms of payments, franchising agreements ) and describes their impact on the distribution of property between the parties depending vertically integrated structure based on ownership interests. The role of the financial mechanism of the vertically integrated company has defined. Also, had installed that the financial mechanism of the vertically integrated company has a multi-level hierarchical system of interrelated major elements and model groups ( principles, methods, tools, etc. ) and how they interact, including integration, resulting in harmonized relations between the state, the owners managers and lenders. The end result of such a mechanism is economic growth and high levels of capitalization. These financial relations, in practice, are reflecting the interaction between the elements of internal and external systems of regulation and management of vertically integrated companies. The level of internal interaction of structural elements inside the company and their systematic relationship has been determined by the level restrictions that dictate the environment. The prevailing institutional conditions help to strengthen management control for most companies and industries depending on their performance of specific individuals, which reinforces the uncertainty, instability and uncertainty of corporate cost of capital in the long run. As a result, the concentration of production in its most general form has manifested in the growth of assets and increasing productivity of large companies that can significantly increase the volume of production, and then apply the merger of existing companies to expand markets and receive a synergistic effect. The cost of the company should be considered as one of the main indicators of its effectiveness, so the task of identifying and managing the value refers to the priorities of corporations. Modifying the value of corporate capital contributes to the volatility of financial assets due to differences between the market value of shares and the value of real assets. Therefore, these properties of financial assets should be considered when assessing the value of the corporation.
Authors and Affiliations
Julia Petlenko
Keywords
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- EP ID EP403021
- DOI 10.17721/1728-2667.2014/154-1/14
- Views 55
- Downloads 0
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