Formation of Effective Mechanism for Financial Recovery of Agricultural Organization
- DOI
- 10.2991/aebmr.k.200729.039How to use a DOI?
- Keywords
- financial recovery, crisis, agricultural organizations
- Abstract
The article gives recommendations on the formation of an effective mechanism for financial recovery of agricultural organizations. It is proposed to interpret financial recovery as a system of goals, principles, financial methods and financial instruments for the development and implementation of a set of special management decisions aimed at preventing and overcoming crisis phenomena in order to achieve solvency and long-term financial stability of the organization. It is concluded that the legal and organizational forms of the organization’s financial recovery depend on what causes the crisis, at what crisis stage the actions against it began. On this basis, a model has been developed for the relationship between types of crises, financial indicators, and the financial recovery mechanism, which helps to identify the degree of crisis and ensure the interference of strategic, tactical, and operational crisis management. The feasibility of using a matrix of financial equilibrium is substantiated. This matrix was designed to predict the “critical path” of the organization’s development for the coming years, identify the acceptable limits of risk and the threshold of its potential for the purpose of forming a strategy for overcoming the crisis and developing an appropriate mechanism for financial recovery using the example of a specific agricultural organization. Strategically oriented scenarios of financial recovery and the mechanism for their application for agricultural organizations are proposed, taking into account the scale and depth of financial insolvency, the prospects and opportunities for an independent exit from the crisis, as well as target indicators for their implementation from the standpoint of satisfying the interests of the business owner and creditors. The application of the proposed mechanism by agricultural organizations will identify crisis phenomena at an early stage and promptly make managerial decisions for financial recovery. This will lead to strengthening financial stability, increasing the competitiveness of agricultural organizations, which, in turn, will ensure the stable functioning of the agricultural sector, food security of the state and will contribute to the development of the country’s economy and GDP growth.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - A.L. Lavlinskaya AU - O.M. Aleshchenko AU - Ye.B. Panina AU - I.V. Kuznetsova PY - 2020 DA - 2020/07/30 TI - Formation of Effective Mechanism for Financial Recovery of Agricultural Organization BT - Proceedings of the International Conference on Policies and Economics Measures for Agricultural Development (AgroDevEco 2020) PB - Atlantis Press SP - 202 EP - 207 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200729.039 DO - 10.2991/aebmr.k.200729.039 ID - Lavlinskaya2020 ER -