Impact of Financial Support on Textile Enterprises’ Development

Abstract

The purpose of this study is to determine the mutual influence of financial security on the textile enterprises development level. The proposed methodological approach is based on the formation of an integrated financial security indicator and its regression model. The study is based on 16 textile enterprises in the European Union. Integral indicators on capital structure, current financing sufficiency and financial efficiency of the investigated enterprises have been defined according to the rapid diagnostics of financial provision of the textile enterprises. The state of financial support for the studied companies’ development has been evaluated. It has been established that the development of textile enterprises depends to a large extent on their financial support as a whole. The change in the development level of companies depends substantially on the change in the integrated indicator of their financial provision. In particular, textile enterprises’ development is significantly affected by the capital structure and the predominance of equity in it, as well as current financing. The financial efficiency factors taken into account do not have a significant impact on the development of textile enterprises. This study proposes a financial security model, developed by partial integrated indicators. It enables visual comparison, collation of the capital structure state, current financing and financial efficiency of the studied enterprises with optimal value.

Діагностика Стратегічного Управління Фінансово-Економічним Розвитком Підприємства

“…The authors use a system of indicators to assess the financial condition of enterprises (Burkhanov & Bakhodirovna, 2021;Boichenko et al, 2021). However, we do not agree with their opinion.…”

“…Financial security and the level of their evaluation are thoroughly reflected in the scientific work (Burkhanov & Tursunov, 2020). A set of balanced workers for evaluating strategic management of financial and economic development is proposed in the works of many scientists (Boichenko et al, 2021;Baxromov, 2023;Azimovna, 2023).…”

Risk Management of Foreign Direct Investment: The COVID-19 Crisis Experience

“…It is this circumstance that is one of the prerequisites for determining reliable estimates of the results obtained in modeling. In fact, the considered sets of variables usually have a normal distribution or are close enough to the normal distribution laws [3].…”

Proposal to Increase the Level of Rural Business Activity after COVID-19

“…To objectively identify the key factors influencing the development of innovative processes in agricultural engineering, the study formed a list of indicators that, in our opinion, will not only qualitatively assess the state of the industry, but also quantitatively, which will describe in detail the prospects for development and outline. In view of the above, it is appropriate to note the prospects for the development of Ukraine's agricultural sector, as the lion's share of criteria, of course, encourages the increase of innovative key business principles [13], [14], [15], [16].…”