COLLECTION OF PAPERS NEW ECONOMY VOLUME 1, No.1, 2023

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UKRAINIAN ENTERPRISES' EQUITY CAPITAL FINANCIAL MONITORING AND ANALYSIS OF ITS IMPACT ON PROFITABILITY INDICATORS

Author(s): Nina Kushnir, Nataliia Kovshun, Tetiana Adamchuk, Yurii Tymeichuk, Diana Tsaruk

ABSTRACT

One of the prerequisites for the enterprise's successful operation is the effective capital structure and assets construction. The financial stability of Ukrainian enterprises was significantly affected during the pandemic and during the period of martial law. Financing of economic sectors in Ukraine is currently rather limited, since it is especially relevant for enterprises of various scales to maintain an optimal equity structure to ensure a sufficient financial independence level. Therefore, the article presents the research results into the financial monitoring aspects of the enterprises' equity capital, which serves as a tool for monitoring the capital formation, use and preservation, as well as its impact on the enterprises' financial outcomes. Based on the statistical data for 2015-2022, the dynamics and structure analysis of Ukrainian enterprises' equity capital, as well as its efficiency indicators was carried out. It was found that there is a non-deterministic relationship between the equity capital value and the enterprises profitability indicator, and therefore a correlation-regression analysis was conducted to reveal the reliability of the relationship between these parameters. The calculated correlation coefficient indicates the existence of a significant relationship between equity and the profitability indicator of enterprise activities. Thus, the created regression model of the equity capital influence on the resulting profitability indicator shows the nature in characteristics change and can be used to analyze the enterprises' profitability increasing factors. The study found that in the conditions of martial law, it should be strategically important for enterprises to find profitability increased reserves through capital management.
Keywords: financial monitoring, equity capital, enterprise's financial result, enterprise's profitability, correlation-regression analysis
Pages: 1-16
UDK: 658.14/.17(477):339.727.22

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