Financial sustainability management methods

  • Ananiy A. Demurchev the Financial University under the Government of the Russian Federation
  • Vasily V. Igonin Financial University under the Government of the Russian Federation
Keywords: financial sustainability, company, value of company, capital structure, borrowed capital, equity

Abstract

Currently, many Russian enterprises have problems associated with attracting resources to finance processes to upgrade fixed assets, expand production and improve financial and production processes in general. These problems are especially relevant in modern conditions when the country's leadership has set the task of increasing the growth rate of the national economy and import substitution. Managing the capital structure or financial stability of organizations in the face of many factors of economic instability in the world and in the country, and also degree of uncertainty of the future is very difficult, especially if the goal is to increase the value of the company. Predicting the financial stability and value of a company can reduce the degree of uncertainty of the future, and by the way anticipate the effects of possible factors of instability, improve the adaptation of organizations to changing economic and political situations. However, in practice, forecasting is used infrequently to manage financial stability, and the tools and mechanisms for solving this problem remain very imperfect. The article discusses the methods of financial stability management, which are proposed by different authors, which include various tools for influencing the capital structure.

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Author Biographies

Ananiy A. Demurchev, the Financial University under the Government of the Russian Federation

student, Faculty of Finance and Economics,

Department of Corporate Finance and Corporate Governance

Vasily V. Igonin, Financial University under the Government of the Russian Federation

Philosophiae Doctor, Associate Professor, Associate Professor of Department of Corporate Finance and Corporate Governance.

The author together with other scientists of the Financial University, it participates in scientific projects (educational programs, research).

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PDF Downloads: 638
Published
2020-05-14
How to Cite
Demurchev, A. A., & Igonin, V. V. (2020). Financial sustainability management methods. In the Center of Economy, 1(2), 29-35. Retrieved from https://www.vcec.ru/index.php/vcec/article/view/14
Section
Finance, monetary circulation and credit