The impact of armed conflict on economic performance and enterprise value in the country

Abstract

The intensity of armed conflicts has peaked in the past 30 years over the past two centuries. The problems of war emergence affect not only social indicators, but also economic and legal aspects of existence of enterprises within the framework of unstable situation in the country. Even in such a difficult time, enterprises at various levels are trying to develop despite the falling economic and social indicators of the local economy. Over time, in places where local armed conflicts have turned into frozen ones (e.g. Transnistria, Gaza Strip, Syria), enterprises have learned to exist in unstable conditions, forming new strategies and reactions to events. Before the World War II, researchers did not question that there was a connection between the decline in the economic performance of enterprises and the conduct of war or armed conflict in a country. However, the number of studies on this issue is small, which makes this paper relevant in the process of studying the issue. The analysis of experience of functioning of business in conditions of war can be useful for thec enterprises of various industries. The purpose of the paper consists in research of influence of local armed conflicts on cost of the enterprises in the country.