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THE ACADEMY
OF FINANCIAL
MANAGEMENT
.

№ 2/2019

№ 2/2019

Nauk. pr. NDFI 2019 (2): 139–150
https://doi.org/10.33763/npndfi2019.02.139

FINANCIAL AND ECONOMIC REGULATION

IZMAILOVA Kateryna 1, BІELІENKOVA Olga 2, MOGOLIVETS Anton 3

1Kyiv National University of Construction and Architecture
OrcID ID : https://orcid.org/0000-0001-8460-110X
2Kyiv National University of Construction and Architecture
3Kyiv National University of Construction and Architecture
OrcID ID : https://orcid.org/0000-0002-8138-2041


The essence of economic cycles and their impact on the financial stability of construction


In the conditions of financial, economic and political changes, the financial sustainability of many construction companies has decreased, many enterprises have ceased their activities in the last few years. Therefore, for construction companies, there is a need to find ways to reduce the negative impact of economic cycles on their economic sustainability and develop effective methods for predicting changes in the phases of the economic cycle in order to reduce the negative impact of fluctuations in business activity, as well as the use of possible development reserves in the case of positive cyclic effects. The purpose of the article is to analyze various approaches to understanding the nature of cycles, to determine the impact of economic cycles on the activity of construction enterprises, in particular on their financial sustainability. The research uses the methods of financial analysis to determine the financial sustainability of construction, with the source of data being the materials of the State Statistics Service (indicators of the balance of enterprises by types of economic activity) and data on the socio-economic development of Ukraine. A theoretical generalization of approaches to economic cyclicality, various types of economic cycles, their features and reasons are analyzed. On the basis of the indicators \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\"change in the volume of GDP\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\" and \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\"change in the volume of GDP of construction\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\" for 2002-2018, it is determined that economic cyclicality is inherent to the Ukrainian economy. Among the fluctuations of business activity, it is quite clearly possible to identify two-four-year cycles of Kitchin, Zhyhulry’s cycles that have period of oscillation seven to eleven years. The indicators of economic sustainability of construction for 2002-2018 are calculated, namely, the coefficients: autonomy, the ratio of borrowed and own funds, coverage, long-term financial independence, mobility, and the structure of debt capital. It is determined that the economic stability of construction companies during the analyzed period significantly decreased due to the \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\"washing out\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\" of own capital. The analysis showed that during the period of decline in economic activity, the share of equity capital in sources of financing and mobility of working capital are increasing.

Keywords:construction, economic cycle, indicators, business activity, financial stability

JEL: G01, G17, L34, O11


Izmailova K. . The essence of economic cycles and their impact on the financial stability of construction / K. . Izmailova , O. Bіelіenkova , A. Mogolivets // Наукові праці НДФІ. - 2019. - № 2. - C. 139-150.

Article original in Ukrainian (pp. 139 - 150) DownloadDownloads :306
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