№ 9/2015

Fìnansi Ukr. 2015 (9): 78–95

FINANCES OF THE INSTITUTIONAL SECTORS

ZYMOVETS Vladyslav , TERESHHENKO Oleh ¹

¹SHEE “Kyiv National Economic University named after Vadym Hetman”
OrcID ID : https://orcid.org/0000-0001-8808-1383

Corporate finance as a dominant of financial science

During the last decade, corporate finance has been developing under the influence of globalization. Domestic financial science often ignores current trends in corporate finance, research methods for studying financial processes and new research directions. With a number of objective and subjective reasons finance companies in Ukraine today are often regarded as the “appendage” to the public finances resulting from the financial dominance of post-soviet financial school. In this paper the essence of corporate finance is substantiated as a dominant financial science, priority directions of research in this area are defined and the prospects for the development of the theory and practice in Ukraine are outlined. It is systematized corporate finance functions, as: formation of financial resources, their distribution, control over the efficient creation and allocation (usage) of resources, transformation of investors’ preferences in settings of capital function influence on the behavior of financial relations, value creation and transfer of information. The expediency of singling out financial science research areas that are fixed in the updated passport of respective specialty is substantiated. It is formulated the distinction between substantive research field of post school finance companies and modern corporate finance. It is determined that the task of micro finance is the study of financial solutions in the corporate sector, including determining the most suitable forms and methods of business financing, formulating criteria for effective investment, development of appropriate assessment tools of financial and investment risks.

Keywords: corporate finance, behavioral finance, controlling, investment companies, value-oriented management, the capital of undertakings, the price of raising capital.

JEL: G22, G24, Q16.

ZYMOVETS V. . Corporate finance as a dominant of financial science / V. . ZYMOVETS, O. . Tereshhenko // Фінанси України. - 2015. - № 9. - C. 78-95.

Article original in Ukrainian (pp. 78 - 95)

Download

Downloads :1253

1. Europian Central Bank. (2013). Corporate Finance and Economic Activity in the Euro Area (Occasional Paper Series 151). Retrieved from www.ecb.europa.eu/pub/pdf/scpops/ecbocp151.pdf.
2. Allen, F. (1993). Stock Markets and Resource Allocation. Capital Markets and Financial Intermediation, 81–108.
3. Ostapchuk, O. E. (Ed.). (2014). Ctaty`sty`chny`j shhorіchny`k Ukrayiny` za 2013 rіk [Statistical Yearbook of Ukraine for 2013]. Ky`yiv: Derzhavna sluzhba staty`sty`ky` Ukrayiny` [in Ukrainian].
4. Sutormіna, V. M. (2004). Fіnansy` zarubіzhny`x korporacіj [Finance of foreign corporations]. Ky`yiv: Ky`yivs`ky`j nacіonal`ny`j unіversy`tet іm. V.Het`mana [in Ukrainian].
5. Tylecote, A., Visintin, F. (2007). Corporate Governance, Finance and the Technological Advantage of Nations. New York : Routlege.
6. Даниленко, А. І. (2008). Fіnansovo-monetarnі vazhelі ekonomіchnoho rozvy`tku [Financial and monetary levers of economic development] (Vol. 3). Ky`yiv: Fenіks, Nacіonal`na Akademіya nauk Ukrayiny`, Іnsty`tut ekonomіky` ta prohnozuvannya [in Ukrainian].
7. Springer Gabler. (n. d.). Retrieved from wirtschaftslexikon.gabler.de/Definition/oeffentliche-finanzen.html.
8. Watson, D., Head, A. (2010). Corporate finance: principles and practice (5th. ed). Edinburgh: Pearson Education Limited.
9. Kry`sovaty`j, A. I., Fedosov, V. M., Ryazanova, N. S. (2013). Korporaty`vnі fіnansy` v kontekstі vy`kly`kіv suchasnoyi іnnovacіjnoyi ekonomіky` [Corporate finance in the context of the challenges of modern innovative economy]. Fіnansy` Ukrayiny` [Finance of Ukraine], 9, 7–27 [in Ukrainian].
10. Verkhovna Rada of Ukraine. (2003). Hospodars`ky`j kodeks Ukrayiny` [Economic Code of Ukraine] (Law № 436-IV, January 16). Retrieved from zakon1.rada.gov.ua/laws/show/436-15 [in Ukrainian].
11. Breuer, W., G?rtler, M., Schuhmacher, F. (2003). Finanzierung. Working Paper, Juni 17, 41.
12. Ehrhardt, M. C., Brigham Е. А. (2010). Corporate Finance: A Focused Approach (4th. ed.). Florence, KY: Cengage Learning.
13. Damodaran, A. (2002). Corporate finance: theory and practice. New Delhi: John Wiley & Sons
14. Ross, S., Westerfield, R., Jaffe J. (2010). Corporate Finance (9th ed.). Boston, MA: McGraw-Hill/Irwin.
15. Volkart, R. (2003). Corporate Finance: Grundlagen von Finanzierung und Investition. Zuerich: Versus.
16. Brealey, R. A., Myers, S. C., Allen, F. (2005). Principles of Corporate Finance (8th ed.). Boston, MA: McGraw-Hill/Irwin.
17. Fedosov, V., Oparіn, V., L`ovochkіn, S. (2002). Fіnansova restruktury`zacіya v Ukrayinі: problemy` і napryamy` [Financial Restructuring in Ukraine: Challenges and Directions]. Ky`yiv: Ky`yivs`ky`j nacіonal`ny`j ekonomіchny`j unіversy`tet іm. V.Het`mana [in Ukrainian].
18. Modigliani, F., Miller, M. H. (1958). The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economic Review, 48, 261–297.
19. Arrow, K. J. (1985). The Economics of Agency. Principals and Agents: The Structure of Business, Boston, 37–51.
20. Sharpe, W. E., Alexander, G. J. (1990). Investments (4th ed.). N. J.: Prentice-Hall: Englewood Cliffs.
21. Damodaran, A. (n. d.) Equity Risk Premiums (ERP): Determinants, Estimation and Implications. Retrieved from papers.ssrn.com/.
22. Fama, E. F., French, K. R. (1999). The Corporate Cost of Capital and the Return on Corporate Investment. Journal of Finance, 54(6), 1939–1967.
23. Vy`shha atestacіjna komіsіya Ukrayiny`. (2006). Pasporty` specіal`nostej [Passports specialties] (Decree № 31-06/11, December 14). Retrieved from search.ligazakon.ua/l_doc2.nsf/link1/MUS5208.html.
24. Rappaport, A.(1998). Creating Shareholder Value: A Guide for Managers and Investors. New York: The Free Press,
25. Van Xorn, Dzh., Vaxovy`ch, Dzh. (2008). Osnovy fy`nansovoho menedzhmenta [Fundamentals of Financial Management] (12th. ed.). Moskva: Y`zdatel`sky`j dom “Vy`l`yams” [in Russian].
26. Kahneman, D., Tversky, A. (1979). Prospect theory: an analysis of decision under risk. Econometrica, 47(2), 263–291.