№ 7/2016

Fìnansi Ukr. 2016 (7): 105–

FINANCES OF THE INSTITUTIONAL SECTORS

KULPINSKY Serhii Vitaliiovych, BAZAVLUK Alina

FINANCIAL POLICY TRANSFORMATION IN THE RAIL TRANSPORT OF UKRAINE IN CONDITIONS OF CAPITAL INVESTMENT DEFICIT

The trends of the railway infrastructure development in Ukraine and current conditions of fixed assets in the railway transport have been analyzed. Regression analysis of the impact of railway transport financial policy on the profitability of its assets has been conducted. A significant positive impact of long-term debt on the profitability has been found with negative moderate impact of retained earnings. The effects of the amortization policy and fixed assets renovation of rail transport companies on the overall debt ratio were estimated and on the basis of this estimate the conclusion on the necessity to accumulate long-term debt to finance capital investment of the railway transport has been drawn. The extent of the leverage growth impact on profitability has been estimated by panel regressions and based on experimental substitution of regression coefficients, relevant marginal levels of both debt and railway transport enterprises’ equity to finance capital needs have been determined. High cost of loans and debt coupled with the low efficiency of the sector companies have been identified as key reasons enhancing the need to limit increases in leverage and providing rationales to look for alternative sources of funding. One of proposed sources is assets securitization, which should reduce the cost of raising funds and promote more effective project management at the companies of the industry. The scheme of raising long-term funds through assets securitization within public-private partnership framework in rail transport has been designed.

Keywords:financial resources, rail transport, depreciation policy, fixed assets, securitization.

JEL: C22, H54, G38, R40.

KULPINSKY S. V. FINANCIAL POLICY TRANSFORMATION IN THE RAIL TRANSPORT OF UKRAINE IN CONDITIONS OF CAPITAL INVESTMENT DEFICIT / S. V. KULPINSKY, A. Bazavluk // Фінанси України. - 2016. - № 7. - C. 105-.

Article original in Ukrainian (pp. 105 - 115)

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