ASSESSING THE FINANCIAL STABILITY OF ELECTRIC POWER ORGANIZATIONS

Olga V Borisova,Nikolay N Kosarenko,Olga A Kalugina,Izida I Ishmuradova,Aleksandr V Grinenko

doi:10.32479/ijeep.7729

Abstract

Nowadays the economic processes in any world economy are carried out at a rapid pace. They have a strong influence on the activities of companies. In this regard, the electric power companies have faced the issue of increasing the efficiency of companies and reducing the degree of dependence on external factors. Moreover, the successful operation of the majority of modern branches of the national economy depends on the efficient and smooth performance of this business. The purpose of the study is to improve the financial stability indicators of electric power companies. The base of the conducted study includes both general scientific and empirical methods: analysis, synthesis, generalization, modeling, observation, description, measurement, and comparison and the case method, which allow broadening the authors' understanding of the financial stability of the business, proposing its main criteria, and studying the aspects of the financial stability of business exemplified by electric power companies. The study carried out by the authors shows that the financial stability of the country is inextricably linked to the financial stability of organizations. Therefore, they need to be evaluated jointly. The relationship between macroeconomic indicators and the financial stability of business is defined by the authors. The concept of financial stability at the macro and micro levels is generalized. The indicators of financial diagnostics of organizations, characterizing their financial stability have been revealed. A model has been developed that allows determining the degree of the financial stability of electric power companies. The proposed model enables the selection of the most stable and steadily functioning electric power companies out of the significant number of ones in conditions of the uncertainty of the external environment. The results obtained by the authors will give an opportunity to identify not only the most stable business in the electric power industry but also, as a consequence, to determine the most attractive business model that should be adapted to other regions to minimize the adverse effects of situations related to uncertainty.Keywords: financial stability, indicators, financial conditions, business model, electric power companies.JEL Classifications: D24; Q43; M31DOI: https://doi.org/10.32479/ijeep.7729

Highlights

Smooth integration and globalization processes eliminate barriers formed over the years, getting in the way of the movement of capital, services, and goods
In many markets, there is an increase in competition in the conditions of limited business resource capacities (Firsova et al, 2018). It leads to a change in established economic ties and generates the development of crisis phenomena in organizations that negatively affect the financial stability of the economy of the countries and the world as a whole
The concept of financial stability appeared at the macro-level

Summary

Introduction

Smooth integration and globalization processes eliminate barriers formed over the years, getting in the way of the movement of capital, services, and goods. In many markets, there is an increase in competition in the conditions of limited business resource capacities (Firsova et al, 2018). It leads to a change in established economic ties and generates the development of crisis phenomena in organizations that negatively affect the financial stability of the economy of the countries and the world as a whole. Due consideration is not given to organizations which are not operating in this field Crisis processes in these organizations have a significant impact on a country’s economy since they can be transferred from one organization to another, destabilizing economic processes at the macro level

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