ECONOMIC CONSEQUENCES OF FINANCIAL STABILITY VIOLATION OF WORLD AUTOMOTIVE CORPORATIONS

Sergyi Smerichevskyi, Ihor Kryvoviaziuk, Larysa Raicheva

Abstract


The purpose of the paper is to determine the state of automotive corporations’ financial stability and to generalize the consequences of its violation for their activity and the global economy as a whole. Methods. The theoretical and methodological basis of the research is the scientific works in the field of corporate finance management and strategic development that studied analysing and evaluating the financial stability of corporate companies, maintaining their financial stability in the medium and long term, official statistics data of United Nations Conference on Trade and Development, financial statements of corporations Toyota Motor Corporation (Japan), Mercedes-Benz (Germany), and Tesla Motors (USA), own research results. The methodological basis of the study is a set of general scientific and special methods used to achieve the research goal: theoretical generalization, analysis and synthesis – in studying the content of scientific works on the research of financial stability of corporate companies and maintaining their financial stability; observation – to obtain primary information about the state of the world automotive market; the method of coefficient analysis and typing the situations – to assess the financial stability of automotive corporations; analytical – in determining the economic consequences of financial stability violation of automotive corporations; causation – to obtain final conclusions. Results. This article deals with the development of automotive industry in the world. The financial stability of leading automotive corporations is evaluated. The economic consequences of financial stability violation of automotive corporations are summarized. Financial strategies to improve the financial stability of automotive corporations are proposed. Practical value. The results of the study may be useful to the United Nations Conference on Trade and Development, the financial management of Toyota Motor Corporation, Mercedes-Benz and Tesla Motors. Value/originality – the state of financial stability of automotive corporations is determined and the consequences of its violation for their activity and the world economy as a whole are generalized. Further research should be directed towards the development of project measures to improve the financial stability of automotive corporations in the world.

Keywords


financial stability, evaluating, automotive development, corporation, economic consequences, financial strategy

Full Text:

PDF

References


Backer, L.C. (2010, August 13). Private Actors and Public Governance Beyond the State: The Multinational Corporation, the Financial Stability Board and the Global Governance Order. Indiana Journal of Global Legal Studies, Vol. 17. Retrieved from: https://ssrn.com/abstract=1658730.

Fedorova, Е., & Timofeev, Y. (2015). Standards of Financial Stability of Russian Companies: Industry-Specific Features. Journal of Corporate Finance Research, Vol. 9, No. 1, 38-47. Retrieved from: https://ssrn.com/abstract=3107810.

Fogel, K., Morck, R., & Yeung, B. (2003, April 1). Corporate Stability and Economic Growth. University of Alberta School of Business. Working paper. Retrieved from: https://ssrn.com/abstract=412804.

Global car sales by manufacturer in 2016 (February, 2017). Statista. Retrieved from: https://www.statista.com/statistics/271608/global-vehicle-sales-of-automobile-manufacturers/.

Grennan, J., Michaely, R., & Vincent, Ch.J. (2017, December 5). The Deleveraging of U.S. Firms and Institutional Investors' Role. Retrieved from: https://ssrn.com/abstract=1941902.

Gudz, T. (2017). Financial equilibrium as basis for enterprise’s sustainable development: economic and mathematical foundation. Technology audit and production reserves, 5/4(37), 51-56.

Güngör, G.Y., Sümer, T.P., & Özbekler, M.D. (2017). Corporate Sector Leverage From Financial Stability Perspective. IFC-ECCBSO-CBRT Conference on “Uses of Central Balance Sheet Data Offices’ information”. Özdereİzmir, Turkey, 26 September 2016, Vol. 45. Retrieved from: https://www.bis.org/ifc/publ/ifcb45k.pdf.

Hur-Yagba, A., Okeji, I., & Ayuba, B. (2015). Analyzing Financial Health of Manufacturing Companies in Nigeria Using Multiple Discriminate Analysis. International Journal of Managerial Studies and Research, Vol. 3, No. 7, 72–81.

Jakubík, P., & Teplý, P. (2011). The JT index as an indicator of financial stability of corporate sector. Prague Economic Papers, 2, 157-176.

Koleda, N., & Lāce, N. (2008). Key Factors of Financial Stability of Enterprises: Case from Latvia. In: Management, Economics and Business Development in the New European Conditions: VI International Scientific Conference, Czech Republic, 23-24 May, Brno: Brno University of Technology, 53-53.

Lǎpǎduși, M.L., & Cǎruntu, C. (2012). The financial stability analysis through the working capital. Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 4, 146-153.

Mercedes-Benz (2018, April). Retrieved from: https://www.mercedes-benz.com/en/mercedes-benz/mercedesbenz-tv/.

Tesla Motors (2018, April). Retrieved from: https://www.tesla.com/.

Toyota Motor Corporation (2018, April). Retrieved from: http://www.toyota-global.com/.

United Nations Conference on Trade and Development (2017, April). Retrieved from: http://unctadstat.unctad.org/EN/Index.html.

Vovchenko, N.G., Holina, M.G., Orobinskiy, A.S., & Sichev, R.A. (2017). Ensuring Financial Stability of Companies on the Basis of International Experience in Construction of Risks Maps, Internal Control and Audit. European Research Studies, Volume XX, Issue 1, 350-368.




DOI: http://dx.doi.org/10.30525/2256-0742/2018-4-2-229-234

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.