Strategy for Forming Financial Resources in the Context of a Conflict of Interests Between an Economic Entity and Its Creditors

Abstract

Subject of article is the development of theoretical provisions and methodological approaches to the development of a strategy for the formation of financial resources in the context of a conflict of interests of an economic entity and its creditors. Aim of the work is to propose a methodology for analyzing the impact of profitability and the price of borrowed capital on the financial condition of a business entity using a game-theoretic approach, which makes it possible to find out the effect of the return on assets on the stability of the financial position of an enterprise. Research hypothesis is based on the objective need for a comparative analysis of the impact of profitability and the cost of borrowed capital on the financial position of an economic entity. Methodological foundations of the analysis of the financial condition of business entities are applied using game theory and economic and mathematical modeling: comparison of the impact of profitability and the cost of borrowed capital on the financial condition of business entities. Proposed approaches can be used by financial analysts to attract alternative sources of the formation of investment resources and, accordingly, the need to enter foreign markets in order to mobilize additional financial resources.