Options simulation toolkit for strategic evaluation of corporations’ financial potential

Abstract

The study substantiates the need to develop the authors’ model for strategic evaluation of financial potential in corporations based on stochastic simulation, which provides for determination of an absolute indicator for sustainability of financial potential resources (i.e. strategic permanent resources for financial potential and relative strategic ratio), as well as actual and strategic indicators values deviations, the study also provides prerequisites for relevant expert conclusions. Such model implies influence of emergent (macro-, meso-) environment on financial potential of corporations. Its application is of a universal character, it contains integrated interests of different stakeholder groups (owners, financial managers, lenders, potential owners, creditors, investors, suppliers, auditors, lawyers, associations, trade unions) allowing in a short period identify internal actual and potential financial opportunities, risks and hidden potentials, takes into account emergent environment influence on financial potential condition in corporations, thus contributing to development of strategic policies for its generation.