№ 6/2016

Fìnansi Ukr. 2016 (6): 108–

FINANCES OF THE INSTITUTIONAL SECTORS

TERESHHENKO Oleh ¹, PAVLOVSKYI Sergij

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

IMPROVING FINANCIAL MECHANISM OF CRISIS MANAGEMENT

The article discusses the features of the financial crisis in the corporate sector of Ukraine, as well as the specific motivations of individual agents involved in crisis management. It is found that the financial rehabilitation mechanism for enterprises formalized in the domestic theory and practice is mostly declarative and not tailored to the immediate challenges of the financial crisis. The article aims to study the key generators of the financial crisis in the Ukraine`s corporate sector and show the areas of improving the financial mechanism of crisis management of enterprises. Internal mechanisms for mobilizing anti-crisis reserves of the enterprise are studied based on the assumptions of the agency theory (relations “principal - agent”). The paper defines generators of innovative changes: aggravation of the crisis; permanent conflicts between external and internal environment; significant deterioration of the material base and social and psychological state of agents responsible for the decision-making; agents’ not having alternative employment opportunities; real chances to change the situation for the better in implementing innovative projects. It is proved that during the financial crisis there is a short “window of opportunity” as a result of short-term convergence of targets of the company, its owners and management at all levels (principals and agents). This situation can be described as a “point of minimizing internal conflicts” principal-agent “accelerating innovative changes”. Ideas common to principal and agents and instruments of their implementation are prerequisites for innovative changes aimed at overcoming the crisis. The paper examines a range of creditors’ interests that affect their decision on financing anti-crisis measures. The author gives a critical view of the draft law “On financial restructuring”, defines its advantages and disadvantages, and proposes the ways of improving the financial mechanism of crisis management.

Keywords:financial crisis, financial mechanism, financial restructuring, rehabilitation of enterprises, financial risks.

JEL: D21, D81, G30, G34.

Tereshhenko O. . IMPROVING FINANCIAL MECHANISM OF CRISIS MANAGEMENT / O. . Tereshhenko, S. Pavlovskyi // Фінанси України. - 2016. - № 6. - C. 108-.

Article original in Ukrainian (pp. 108 - 123)

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