Developed Capitalist Countries Research Articles

Research on the impact of equity incentive model on enterprise performance: A mediating effect analysis based on executive entrepreneurship.

In implementing the equity incentive system, this paper delves into the listed enterprises' selection of equity incentive models. While previous research has extensively covered the effects, models, and influencing factors of equity incentives, there needs to be more in-depth literature focusing on the diverse incentive models and their impact on corporate performance. Notably, there needs to be more literature on considering entrepreneurial spirit as a mechanism. It aims to explore the relationship between executives' choices under different incentive models, the entrepreneurial spirit fostered by these models, and their combined impact on corporate performance. The findings reveal that adopting the restricted stock incentive model by listed enterprises implementing the equity incentive system significantly positively affects enterprise performance. Mechanistic tests show that when a company implements the restricted stock incentive model, executives prioritize maximizing their interests, leading them to embrace more risk in their investment decisions. This behavior, in turn, stimulates the adventurous spirit of executives, positively impacting enterprise performance, particularly pronounced in companies with more concentrated executive power. Moreover, executives may be more inclined to invest in high-risk, high-reward innovative projects, a behavior indicative of innovation and more prevalent in firms with higher research and development (R&D) investment. However, the limitation of this paper is that the study evaluates the operation of the equity incentive system in China by taking listed companies in China as an example, which is not necessarily suitable for foreign developed capitalist countries. This study contributes to the study of principal-agent problems by exploring the relationship between executives, entrepreneurship and firm performance.

The Influence of Sino-american Cultural Differences on Economic Development based on Game Theory and Solow Growth Model

From 1960 to 2000, East Asian countries' gdp grew at an average annual rate of 6 percent, much higher than the OECD average annual growth rate of 2 percent. As analyzed by the Solow growth Model, when relatively poor countries share some of the same factors as developed countries, the average annual growth rate of East Asian countries is much higher. The economies of poor countries tend to converge with those of rich ones, including better legal systems, competitive markets, and better health programmes. But the real process and the model's conclusions do not match perfectly. Despite the continuous optimization of various systems in East Asia, it is still far away for East Asia to converge with the economic level of developed countries. One of the reasons is that developed countries led by the United States take advantage of their economic advantages and international status under the guidance of capitalist human rights values. The intention is to hinder the development of developing countries, including China, in order to maintain their international status advantages and seek benefits. As the largest developing country, China's development speed in recent years is beyond doubt. With the improvement of economy, the improvement of system and the continuous improvement of international status, different from the exploitation of other countries by the so-called human rights doctrine by the United States, under the principle of socialist core values derived from Chinese culture, China carries out the Belt and Road Initiative, deepens practical cooperation among countries, and holds the World Expo. To issue a green call to the world, jointly build a green earth, jointly cast a community of shared future for mankind, and use comparative advantages to benefit the world. With the improvement of the strength of most developing countries such as China, the contradiction between the behavior patterns determined by the different consciousness of developing countries and developed countries in the international world is deepening day by day. From the perspective of Marxist contradiction analysis, the contradiction is bound to be solved in a way that conforms to the fundamental interests of most people. Let's combine this argument with different arguments in economics to think about what cultural ideas end up dominating world culture when two cultures collide. This paper first uses Marxist materialist dialectics to introduce the reasons for the formation of social forms in developed capitalist countries and the dominant cultural thoughts in the formation process, and then introduces the dominant culture in China's 5,000 years of history. Compare different domestic and international economic behaviors determined by different consciences influenced by different cultures, and compare and analyze the process and results of economic interaction between the two cultural conflicts on the basis of the game model and Solow's growth model. The analysis results show that the expanded Soro growth model of domestic economy on the basis of adhering to the moral primacy culture overcomes the free-rider problem of scientific and technological innovation under the principle of human rights primacy. Therefore, in the end, under steady state, China's domestic economic growth will still be higher than that of the United States, while the international status of the United States will decline due to the rise of a large number of developing countries. Finally, the United States will be forced to give up the current exploitation of developing countries, and the idea of win-win cooperation will become the mainstream idea of international trade.

Structure of Society From the Rugby to the Rubik’s Cube: A Stability Perspective on Social Structural Transformation

The Rugby-shaped society is considered a nearly ideal type of social structure, becoming an essentially stereotyped elite theory in the global mainstream sociology, which is fundamentally based on the practice and theoretically repeated confirmation of the super-stability function of the Rugby-shaped society in developed capitalist countries. As a result, the Rugby-shaped society has become a theoretical goal of social transformation and a general social consensus. The feasibility of localized social groupings exhibiting a Rugby-shaped structure is not necessarily adequately replicable under the condition of closer global social linkages, and the occupation-based social class structure is not always hyper-stable. The more multidimensional Rubik’s cube society contains both uncertainty and hyper-stability, and the proposed Rugby-shaped society for China should take into account the more complex influencing factors in the systemic global social structure of a Rubik’s cube society. Non-occupational factors may also increase the risk of social instability.

The Evolution of Marxist Theory of Financial Capital in the ACC Payment Model

Abstract Since the late 1970s, a series of profound changes have occurred in developed capitalist countries. The most prominent is the increasing virtualization and financialization of the capitalist economy. Financial leverage has been increasing under the ACC payment model in the financial supply chain. In order to study the evolution of Marxist financial capital theory under the ACC payment model, this paper mathematically models supply chain finance under the ACC payment model by analyzing early payment, immediate payment, and credit payment in the process of ordering, receiving, and selling in the supply chain, followed by the monopoly position of financial capital in the U.S. economy and U.S. national income under economic virtualization. From 1995 to 2016, total U.S. financial assets as a percentage of GDP grew from 113.6% to 425.5%, a growth rate of 274.56%. The average percentage of U.S. government bonds to GDP was 39.16%. U.S. non-financial business as a percentage of GDP has grown at an average annual rate of only 1.62% over the last 20 years. Under economic virtualization, the median annual U.S. household income has largely trended downward since 2002, and in 2016 the median annual U.S. household income fell to $49,100, essentially the same as in 1995. Annual per capita income is also declining in the U.S.; in 2016 was already nearly $2,200 less than in 1995. The ACC payment model allows financial capital to add value by detaching itself from the production process, and the faster it adds value, the more it stimulates credit expansion. From a Marxist perspective, the bourgeoisie’s use of virtual financial capital for the continuous plundering of global capital has led to unbalanced global economic development and a growing gap between the rich and poor of people, thus intensifying the basic contradictions of capitalism, which is a warning for the development of the global economy nowadays.

Three Variants of the First Five-Year Plan for the Economy of the USSR (From Realism to Utopia Against the Background of the Economic and Political Development of the USSR in 1928–1929)

The article analyzes the first stage of the formation of the planning system in the USSR as an integral part of the command economy. It is shown that the goals and objectives of the first long-term plans were determined by the objective need to overcome the economic and military backwardness of the USSR, in comparison with the developed capitalist countries, and by the conviction of the Soviet leadership in the idea that military conflicts with class and geopolitical opponents are inevitable. At the same time, the goals and objectives were determined by the NEP crisis in the period of reconstruction. The author of the article compares three variants of the first five-year plan. He considers and explains the differences in their aims, macroeconomic tasks and basic national economic proportions. Based on the world and Soviet economic history, the author assesses the feasibility of individual versions of the five-year plan and shows the utopian nature of the adopted five-year plan. Besides, the article analyzes the fulfillment of the five-year plan in the first two years. Alternative macroeconomic estimates demonstrate non-achievement of targets for all most important indicators. Moreover, the article has considered some indicators that were increased for individual sectors of the economy in spring of 1929. Due to the utopian nature of the adopted plan, the question is considered whether Stalin and his entourage were insane and how they could navigate in what was happening in the economy having unreliable macroeconomic information. Although, they are proved to have had sufficient information about the real situation in the economy.

Dependent capitalism and its distinctive forms of government in the light of the Marxist Dependency Theory

The purpose of this work is to analyze the particular forms of government that arise under conditions of dependent capitalism. The author analyzes the features of the uneven development of dependent countries and suggests that in such countries a special form of development of capitalism has formed. As a theoretical basis, the author uses the Marxist theory of dependence. As a result of the study, the author concludes that a form of government in dependent states brings about conditions in which national resources and capital flow to developed capitalist countries. As a result dependent countries lose part of their sovereignty, and an authoritarian political regime based on the working class becomes a necessary condition for maintaining dependence on the capitalist center.

Етапи і ефекти розвитку економіки Італії в історичному вимірі

The article analyzes the stages of the economic development of Italy from the mid-nineteenth century to the world economic and financial crisis in period 2007–2009. The economy of Italy is an interesting example among developed capitalist countries. In the post-war years, Italy, starting from a low level, quickly became one of the industrial powers in the world. The 1950s and 1960s were a period of dynamic industrialization of this country, which resulted in the expansion of a number modern industries, especially chemical and machine industries. Italy was even considered an example of an «economic miracle». The main feature of this period was the rapid growth of gross (GNP) and net (PNN) national product, which was accompanied by a high investment rate, dynamic export growth, a significant reduction in unemployment and profound changes in the employment structure. Since the mid-1990s, their economy has been developing significantly slower than the EU average. In 2019, GDP (nominal) in this country amounted to 1,988 billion dollars, which allowed Italy to take eighth place in the world ranking of the largest economies and despite the crisis, the fourth economy in Europe (after Germany, Great Britain and France). The economic problem is significant unemployment (9.8% in 2020) and the country's internal debt amounting to 134.8% of GDP (in 2019). The interdependence of export-investment-economic growth was historically the driving mechanism of the economic development of Italy in the 1950s and 1960s. However, in the 1970s, or even slightly earlier, the period of dynamic development ended. The aforementioned driving mechanism of the economy has ceased to function.

Is deglobalization possible?

Deglobalization seems to appear with the Brexit, Trump ’s election as US president, and the 
 victory of the “ No ” vote of 2016 Italian constitutional referendum. Globalization or 
 deglobalization is ultimately driven by strong party ’ s interests. With the development of 
 globalization to a certain extent, the benefits that several major developed capitalist countries 
 can gain in the trend of globalization are gradually less than the benefits of damaged ones. 
 Therefore, these major developed capitalist countries want to safeguard their interests by 
 promoting deglobalization. Is deglobalization possible? Now the force of globalization and 
 deglobalization coexist, and it depends on which side is more motivated. As long as the two 
 major trends that continuous developing of the global value chain and the continuous 
 improvement of science technology have not fundamentally changed, the process of 
 globalization will not be fundamentally changed. In fact, these two major trends have not be 
 changed fundamentally, and they are difficult to be changed. In the process of globalization, 
 there will inevitably be imperfections and deficiencies in management mechanisms, such as 
 income inequality among countries and income inequality among different hierarchies in a 
 country. Some so-called deglobalization phenomena in the current can be seen as exploratory 
 amendments of the deficiencies of globalization rather than real deglobalization. This article 
 will discuss why the deglobalization is not very likely from the following three aspects: 1. The 
 developing countries gradually have more initiative in the global arena; 2. The development of 
 information technology is irreversible; 3. To analyze from other driving factors of 
 deglobalization.

They Warned (Soviet Scientists Who Foresaw The Collapse of The Ussr)

The works of Soviet scientists who warned in the 60–70 years about the possibility of the collapse of the USSR are analyzed. In the book "Will the USSR live to 1984?", published in 1969, historian Andrei Amalrik identified the causes of the possible collapse of the USSR (the elimination of the most active and capable from the life and composition of the ruling class, the decrepitude of the regime, the degradation of morality and deideologization) and even named its approximate dates. In a note to the leaders of the government party dated March 19, 1970, physicists Sakharova and Turchin and historian Medvedev showed the slowdown in the sixties in the USSR of economic development and technological progress, the standard of living of the population, the growing lag in these areas from developed capitalist countries. They linked these phenomena with the lack of freedom of thought and creativity, political freedoms. The economist and historian Akhiezer analyzed the history of Russia and, based on the revealed cyclical development of Russia and the huge factual material about political and economic development, predicted perestroika and its collapse, accompanied by the collapse of the USSR. Khanin produced alternative estimates of the dynamics of the economic development of the USSR and its factors by a number of methods. A steady decline in the pace of economic development and resource efficiency has been revealed since the seventh five-year plan. On this basis, a significant reduction in the national income of the USSR was predicted from the mid-80s. B.N. Mikhalevsky, head of the Forecasting Department of the Central Research Institute of the USSR Academy of Sciences, in 1967 made a forecast of the development of the Soviet economy for the next 10–15 years. Based on an in-depth analysis of the structure of the Soviet economy and real inflation figures, it predicted a decline in industrial production and the standard of living of the population while maintaining the previous economic policy. It is shown that the authors of forecasts of the possible collapse of the USSR were either persecuted or their opinion was ignored. It is shown that ignoring warnings about the possible collapse of the USSR is explained by the authoritarian nature of the Soviet social system, the low intellectual level of the Soviet leadership of the 60s and 70s, and fears of losing power. The article analyzes the appearance of the authors of warnings about the collapse of the USSR.

Labor exportation, transnational production politics, and the formation of exploitation relationships—a case study of Chinese migrant workers in Japan

In the context of globalization, the exporting of labor from developing countries to developed countries has shaped a relationship of exploitation between employers and employees. This study presents the case of Chinese migrant workers’ overtime pay in Japan and explores the formation mechanisms of exploitation using the analytical framework of “transnational production politics”. Transnational migrant workers often see overtime as an indispensable opportunity to generate extra income to support families back home. This need is being taken advantage of by employers who habitually reduce overtime pay or do not pay for overtime at all. Overtime pay often becomes a focal point of labor conflict. Because of the limited protections for migrant workers in the labor laws of host countries, the power granted to employers by the host country's labor system, competition from migrant workers of other nationalities, and the selective involvement of transnational intermediaries, Chinese migrants suffer a dilemma of either surrendering to low overtime pay or losing overtime work, or even their job altogether. Whether to resist or surrender, it seems that the outcome is all the same for migrant workers: they lose and employers win. This “transnational production” polity exercises its market authoritarianism. Elements such as the constraints of the foreign labor system, loopholes in the system used by employers, the global surplus labor supply, and the separation of the processes of labor maintenance and labor renewal in the mode of labor reproduction typical to migrant labor reflect the transnational production politics peculiar to international contract labor mobility. This becomes an important mechanism for the re-emergence of the forced exploitation of capital in developed capitalist countries. Unlike the exploitative relationship between local workers and employers in developed countries, the exploitation between migrant workers and employers is born out of imbalanced development between countries. Migrant workers not only have no access to protections afforded by the host country's welfare system, but also are controlled by strict laws regarding foreign labor and are threatened by competition from other migrant workers. All this has put employers in a strongly advantageous position in labor conflicts.

OSNOVNI MEHANIZMI NACIONALNE EKONOMSKE POLITIKE U SLUŽBI PODSTICAJA KONKURENTNOSTI INDUSTRIJE ZEMALjA U RAZVOJU

At the present stage of the process of globalization, national economies cannot remain only passive observers of its movement, but must actively participate and become an equal subject in the market game. Regardless of its own, both innate and acquired defects, the market cannot be omitted from the process of globalization. Therefore, the role of national states must concentrate on creating a favorable macroeconomic environment for intensifying the growth of the domestic economy on one, apropos, to the strengthening of its foreign positions, on the other side. In this context, national states should retain their legislative, organizational and control powers, not with the aim of eliminating the market, but vice versa, to direct it in the desired directions. National states have small, or almost no, options for their choice. Establishing a global free market is a political project in the interest of the wealthy developed capitalist countries. The main conclusion of this study should be a mandatory task, especially for the small and undeveloped economies to develop its own strategy of economic and social development. The starting premises would be: the pace of economic growth, the degree of openness of the economy, the real possibility to engage in global processes, etc., and only then, the concept for their integration into the world economy can be built. The synthesis of the economic and social component can further conceive the strategy of liberalization, that is, competitiveness. At the same time, it could be possible to work on the formation of regional integration units for better protection of the national economic interests in general, or protecting domestic enterprises in competition with the TNC, in particular. Regional integration unities, as stronger than national ones, can more successfully fight for more equal treatment at the international level. Therefore, the process of globalization that is realized by linking special societies that are organized as states (most often national ones) should not be carried out by abolition, but by state cooperation. The abolition of national states would present a basis for destroying the culture of peoples and nations, erasing their traditions, and in that context limiting the possibility of expressing the special features and integrity of their citizens. The vision of the globalized world should seek a new balance of forces and influences that will be based on an open and fruitful dialogue and full respect for the dignity of others, or in other words respecting the cultural specifics of each nation.

New Economic Policy – Practical Experience of Creating a New Socio-Economic Model

The article describes the stages and main activities carried out in the framework of the new economic policy (19211927) are considered. The place and role of NEP in the economic history of Russia, despite the past 100 years, are still following discussion issues. In particular, the question of the impact of a new economic policy on the formation of a mixed economy in developed capitalist countries in the second half of the 20th century was relevant. In the 1920s, an economic system was built in Russia in Russia, which can be developed as a mixed economy, which has proven its flexibility and effectiveness in solving the most complicated economic tasks. The article analyzes the experience of NEP based on the use of the methodology of institutional theory. The activities of the authorities during this period were aimed at the adaptation of old institutes, skills, mentality of the population in the conditions of a tight deficit of all resources to new requirements, primarily in the economy. The importance of the tasks facing the tasks and the limited time released by history to their decision determined the choice of a rigid totalitarian style of economic management and society, which did not allow to reveal the potential capabilities of the ECAP economic mechanism.

FUNDAMENTAL VARIABLES AND PRECONDITIONS OF PEOPLE’S DEMOCRACY IN PERIPHERAL COUNTRIES ACCORDING TO SAMIR AMIN

ccording to Amin, there are two fundamental variables about the concept “people's democracy.” The first is that people's democracy emerges from the political and social demands of the "working classes." So, neoliberal bourgeoisie and companies integrated into the global economy have nothing to do with people’s democracy. The second fundamental variable is that the principle of "equality" constitutes the backbone of people’s democracy. This equality is not about economy or culture alone. It includes freedom of expression and association, participation of large segments of society in the state administration, and equality of women and men, as well as transfer of the ownership of means of production to workers. According to Amin, if any of these components of equality is compromised, it is impossible to talk about people's democracy. After analyzing the fundamental variables of the concept of people's democracy in this way, Samir Amin describes its necessary preconditions. These preconditions are "secularism" and "break with the capitalist world system," in order of importance. Compromising any of these two preconditions will pave the way for a decisive failure on the road to create people's democracy for the periphery countries. A fact confirmed by the experiences of periphery countries in modernization and socialism in the 20th century is that the countries that have failed to realize the principle of secularism or chosen the way of “catching up with” developed capitalist countries without breaking with the capitalist world system have not been able to reach these goals. Keywords: Historical materialism, social classes, socialism, democracy, secularism, gender

Changes of World Economic Pattern and New Development Opportunities for China in the Post Epidemic Period: From the Perspective of Marx’s Economic Crisis Theory

The global economic recession caused by the new epidemic situation will lead to great changes in the world economic pattern in the post epidemic period: The economy of Western developed capitalist countries has been severely damaged, and the long-term economic trend of major developing countries is uncertain. China has basically entered the track of economic recovery. The huge blow to the world economic system caused by this epidemic is closely related to the endogenous contradiction of capitalist economy. In the perspective of Marx’s political economy, economic crisis is an inherent phenomenon that capitalism cannot overcome. After the 1970s, under the baptism of new liberalism, economic globalization, financialization and other economic development trends, the inherent contradictions of capitalism were further intensified. After the outbreak of the COVID-19 epidemic, which was a devastating exogenous impact, the major Western capitalist countries quickly fell into economic recession. In order to deal with the epidemic crisis, most Western developed capitalist countries have adopted expansionary fiscal and monetary policies, trying to restore market confidence and revive the economy through economic stimulus policies. This will have the following impact on the capitalist economy in the post epidemic period: The transition from Neo liberalism to regulatory capitalism, and the reshaping of the traditional pattern of economic globalization. The impact of the epidemic will not disappear in a short period, and countries that are not in a good position to deal with the epidemic situation may fall into a long-term economic recession. The epidemic is directly related to the economic recession, but not necessarily. Under the same impact of the epidemic, China can quickly control the epidemic by virtue of the superiority of the socialist system, and become the only major economy recovering at present. Marx’s theory of economic crisis can give a scientific explanation. In the post epidemic period, with the further exertion of the advantages of China’s socialist system, the recovery of the world economy will depend on China’s economy, which will bring new development opportunities to China: The continuously optimized business environment is conducive to absorbing more international risk aversion funds, the increasing economic anti-risk ability in the post epidemic period will boost China’s industrial upgrading, domestic consumption recovery ushers in bright development prospects, and digital economy will become a new economic growth point. In order to grasp these opportunities, China should take the following measures: Build a stable and orderly new financial format, ensure the stability of the industrial chain, strengthen the key technologies related to digital economy, stimulate supply side and demand side jointly to help the recovery of consumption, take multiple measures to maintain the stability of employment, and actively participate in the construction of a more effective global governance system.

Impractical Discussion of Difference between China and Developed Capitalist Countries in Economy

Impractical Discussion of Difference between China and Developed Capitalist Countries in Economy

ПРО ПІДХОДИ ДО ДОСЛІДЖЕННЯ ЗМІН У ЗМІСТІ ТА ХАРАКТЕРІ ПРАЦІ ЗА УМОВ СТАЛОГО ЕКОНОМІЧНОГО РОЗВИТКУ

The article is devoted to the definition of approaches to the analysis of changes in the content and nature of work, which occur in the current stage of post-industrial society and are determined by the implementation of areas within the concept of sustainable economic development. The starting point of the study was the use of the method of scientific abstraction in the analysis of labor, on the basis of which it is shown the expediency at the theoretical level to consider human economic activity in the perspective of two aspects. This approach made it possible to clearly distinguish between the concepts of "content" and "nature" of work. Show that the set of labor functions and operations, which are derived from the technical basis of production, technical-technological and organizational-economic relations, form the inner essence of the content of labor. And socio-economic relations between people by their participation in production processes, which are primarily determined by property relations, act as an economic category and determine the external form of labor, ie its nature. It is established that between these characteristics of labor there is always, under each specific conditions of development of social production, a close connection and interaction, which necessitates the simultaneous, comprehensive study of their essence. The paper presents a historical view of the analysis of the content and nature of work by scientists of the Soviet period, which was carried out within the formational approach and aimed at substantiating the advantages of the socialist nature of work over capitalist. To achieve this task, the results of the assessment of the content of labor were set aside, detached from the nature of labor, because the technical and technological basis of production in the countries of the socialist camp lagged far behind that formed in developed capitalist countries. Based on the realities of today, considerable attention in the article is paid to the impact of innovation and information and communication technologies on the content and nature of industrial labor. Particular attention is paid to the study of the processes of intensifying the use of intellectual resources of employees, strengthening the creative nature of work, increasing the focus of man on the need for constant replenishment of knowledge, finding them an applied nature.

Perceptions of the fairness of income distribution in Serbia: A comparative perspective

The paper examines perceptions of the fairness of income distribution in Serbia from a comparative perspective. The analysis is based on data collected under Round 9 of the European Social Survey in 2018/2019. Perceptions of the fairness of personal income in Serbia are compared with those from three post- Yugoslav countries (Montenegro, Croatia and Slovenia) and three developed capitalist countries (Germany, Sweden and the United Kingdom). The research findings indicate that the vast majority of Serbian citizens perceive their personal income (gross and net pay, pensions and social benefits) as being unfairly low. From a comparative perspective, it is noticeable that the perceived fairness of income distribution is influenced by a contextual variable that combines the effects of economic development, degree of income inequality and path dependency. Income from work (gross and net pay) is more often perceived as unfairly low in the post-Yugoslav countries of the Western Balkans (Serbia and Montenegro) than in the post-Yugoslav countries that are members of the European Union (Croatia and Slovenia). When it comes to perceptions of the fairness of pensions and social benefits, the two groups of the post-Yugoslav countries do not differ from each other. All types of income are more likely to be perceived as unfairly low in the Western Balkan states than in the developed capitalist countries.

International knowledge transfer and Russian social policy: The case of gender mainstreaming

In the course of their transition to a market economy, the importance of international knowledge transfer from developed capitalist countries to the post-Soviet states has increased. However, the question of what particular knowledge has been transferred and why in some cases knowledge transfer has been successful, while in others it has failed, remains under-researched. Using gender mainstreaming as an example, the mechanisms of international knowledge transfer in Russian social policy are discussed in detail. The authors argue that specific knowledge transfer could facilitate the acquisition of new knowledge, but its sustainable application in social policy decision-making might be problematic, requiring commitment of political actors as well as supportive institutional conditions.

The Rise and Impact of Financial Capitalism: A Sociological Analysis of New Forms of Capitalism

Compared with Karl Polanyi’s first Great Transformation, the emergence of the even more influential financial capitalism can be called the second Great Transformation. The global expansion of financial capitalism has extended its power beyond the remit of nation-states as governments, firms, families and individuals are increasingly guided and reshaped by financial markets, producing a trend toward the financialization of social life. An important social consequence is the ever more marked separation of financial markets from society, a separation that has gradually eroded the power of the state, trade unions and civil society and aggravated the employment crises, the polarization of rich and poor and the structural inequality of developed capitalist countries. In the face of society’s erosion by financial capital, the West has taken measures of social self-protection, but these have so far had little effect. To establish a new financial and market governance structure at the global level that will effectively cope with the negative impact of financial capitalism is a long and arduous task.

Influence of information asymmetry on the assessment of a company’s solvency

Introduction. The environment in which enterprises operate in the 21st century is becoming qualitatively different: the intensification of competition in a saturated market leads to an increase in the degree of uncertainty, and hence to the emergence of unpredictable factors. Because uncertainty is a source of risk, it should be minimized by obtaining quality, reliable, comprehensive information. In Ukraine, declaring asymmetric information is done in a completely opposite way than abroad: real property, revenue and profit, on the contrary to developed capitalist countries, are understated to minimize taxation. In both cases, such information asymmetry gives potential investors misconceptions about the solvency of a company and the efficiency of its activities.
 Aim and tasks. To investigate how the presence of information asymmetry in the economic environment affects the assessment of the solvency of economic entities from the perspective of investors. The obtained conclusions will allow to determine what exactly needs to be done in the direction of further improvement of regulatory instruments of state policy in this area.
 Research results. With the growth of information saturation of society and the greater extent of replication and interpretation of source information, it becomes easier to abuse, manipulate information, and to mislead people. Obstructing the rational behavior of economic entities and generating additional costs (information retrieval costs), the asymmetry of information leads to inefficient functioning, and also causes restrictions on competition. The main universal models of investor behavior in a market in the conditions of information asymmetry, which are actually aimed at the inevitability of unexpected and sharp reversals of market conditions (so-called "black swans"), are analyzed.
 Conclusion. A company's financial statements contain information that should be interpreted as asymmetrically distributed information. Approaches based on methods of detecting and accounting for asymmetry in the annual reporting of companies are promising for remedying its negative impact. On the other hand, these approaches must also take into account the fact that in the XXI century, the functions of intermediaries are easily deformed, information technologies are ineffective, and the rules of rational behavior may lead to failure. Therefore, overcoming uncertainty and information asymmetry requires taking into account N. Taleb's approach to the existence of "black swans". Moreover, it is a demand of the present time: in early 2020, the whole world encountered one of these "black swans", namely the global COVID-19 outbreak.