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Financial Analytics: Science and Experience
 

A systems approach to assessing the financial equilibrium of commercial organizations

Vol. 13, Iss. 1, MARCH 2020

Received: 24 January 2019

Received in revised form: 16 June 2019

Accepted: 20 August 2019

Available online: 28 February 2020

Subject Heading: Economic policy

JEL Classification: G21, P13

Pages: 4–20

https://doi.org/10.24891/fa.13.1.4

Paramonov P.F. Kuban State Agrarian University named after I.T. Trubilin (Kuban SAU), Krasnodar, Krasnodar Krai, Russian Federation
econ-pred@kubsau.ru

ORCID id: not available

Rodin D.Ya. Kuban State Agrarian University named after I.T. Trubilin (Kuban SAU), Krasnodar, Krasnodar Krai, Russian Federation
rodin17@mail.ru

ORCID id: not available

Glukhikh L.V. Kuban State University (KubSU), Krasnodar, Krasnodar Krai, Russian Federation
GluhihL@bk.ru

ORCID id: not available

Subject We consider issues that relate to searching and achieving the proportions of financial equilibrium that ensures a balanced state and sustainable development of corporations.
Objectives The aim is to provide objective and complete interpretation of financial equilibrium of a corporate institution as a financial system, define the existing system interconnections and mechanisms for maintaining and restoring the balance, methods of achieving the balance of internal proportions of commercial organizations’ financial equilibrium and their market environment.
Methods We employ methods of analysis and synthesis, induction and deduction, generalization of financial and economic processes and phenomena, and financial equilibrium.
Results We define the category of financial equilibrium as the most important characteristics of commercial organizations’ financial system functioning. The paper identifies significant factors and underpins effective mechanisms for maintaining and restoring the financial equilibrium of financial system of commercial organizations with predetermined properties and characteristics. It also presents methods for achieving the balance of proportions of financial equilibrium, the violation of which leads to dysfunctions in the sustainable development of corporate institutions and in their interaction with market environment.
Conclusions The financial equilibrium is imperative for financial stability and guaranteed solvency. Harmonization of financial systems at different hierarchical levels contributes to efficient flow of financial and real capital to address priority areas of economic growth. The proposed mechanisms can be used for improving the intrafirm management of resource potential and in strategic financial planning when implementing regional programs for territory development.

Keywords: financial system, financial equilibrium, corporate finance

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