MODELING OF INTEGRATED ASSESSMENT OF THE EFFECTIVENESS OF MANAGEMENT OF THE FINANCIAL POSITION OF BUSINESS ENTITIES

Abstract

The aim of the research is to develop an integrated indicator for assessing the effectiveness of financial management of business entities in Ukraine, as well as to determine the impact of capital investment, personnel costs and payment for work on it. The dynamics of the external, in particular institutional, business environment and adverse market changes require a systematic revision of the methods for assessing the effectiveness of management of the financial position of business entities. Operational assessment of the effectiveness of management of the financial position of entrepreneurial activity enables to control the transformation and transaction costs through a well-chosen strategy for long-term development of the enterprise. Attention is focused on the fragmentation, obsolescence and inconsistency of the already developed methods and models for assessing the effectiveness of management of the financial position of business entities. Taking this into account, a model for assessing the effectiveness of management of the financial position of large, medium-sized and small enterprises was proposed. The developed model will enable government officials, business entities, international institutions and other stakeholders to assess the current effectiveness of financial management of large, medium-sized and small enterprises. An integral assessment of the effectiveness of management of the financial position of business entities was proposed to be determined on the basis of three basic indicators: the percentage of profitable enterprises among all enterprises of this group; pre-tax financial result of enterprises that made a profit in US dollars; pre-tax financial result of enterprises that suffered a loss in US dollars. It was found that the decline of the effectiveness of management of the financial position of business entities in Ukraine began in 2012 for all types of enterprises. The impact of the indicators of capital investment, personnel costs and payment for work on the integrated assessment of the effectiveness of management of the financial position of enterprises was studied. It was revealed that the amount of capital investment, personnel costs and payment for work significantly affect the financial position of medium-sized and small enterprises.