Abstract
The purpose of this study is to determine the mutual influence of financial security on the textile enterprises development level. The proposed methodological approach is based on the formation of an integrated financial security indicator and its regression model. The study is based on 16 textile enterprises in the European Union. Integral indicators on capital structure, current financing sufficiency and financial efficiency of the investigated enterprises have been defined according to the rapid diagnostics of financial provision of the textile enterprises. The state of financial support for the studied companies’ development has been evaluated. It has been established that the development of textile enterprises depends to a large extent on their financial support as a whole. The change in the development level of companies depends substantially on the change in the integrated indicator of their financial provision. In particular, textile enterprises’ development is significantly affected by the capital structure and the predominance of equity in it, as well as current financing. The financial efficiency factors taken into account do not have a significant impact on the development of textile enterprises. This study proposes a financial security model, developed by partial integrated indicators. It enables visual comparison, collation of the capital structure state, current financing and financial efficiency of the studied enterprises with optimal value.
Highlights
One of the key strategic challenges facing any country’s national economy today is the emergence of powerful development points, which are usually advanced industries, innovative technologies, and development of commercial, industrial and social infrastructure, as part of the complex processes of sustainable development and the evolution of the knowledge economy (Boström et al 2018)
This study proposes a methodological approach based on the formation of an integrated indicator of financial security and its regression model
By comparing the values of integrated indicators with a reasonable reference indicator of financial security, we identified enterprises that in each group are its typical representatives at the level of financial security
Summary
One of the key strategic challenges facing any country’s national economy today is the emergence of powerful development points, which are usually advanced industries, innovative technologies, and development of commercial, industrial and social infrastructure, as part of the complex processes of sustainable development and the evolution of the knowledge economy (Boström et al 2018) One of such promising industries is the textile industry, whose products, while meeting primary needs, are characterized by continuous growth of the consumer market (due to global population growth processes); the availability and development of technologies aimed at simplifying the technological process and reducing production costs through alternative materials, and numerous opportunities for product differentiation (de Oliveira Neto et al 2019). The problem of the theory and methods of assessing the textile enterprises development is primarily to identify the most reasonable methods, criteria, indicators that would most closely reflect the peculiarities of the studied problem
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