Efficiency of capital formation of utility enterprises: the case of Ukraine

Main Article Content

Yulia Slobodyanik
Kateryna Bagatska
Hanna Silakova
Liudmyla Krot
Alina Korbutiak
صندلی اداری

Abstract

The paper aims to analyze the approaches to capital formation of Ukrainian utility enterprises, identify their impact on the financial results of entities and formulate recommendations to ensure the efficiency of utility enterprises. The methodological basis of the study is comparative analysis, theoretical studies, statistical information, analytical data prepared by governmental and non-governmental bodies, the best practices. In the course of the research were collected and processed empirical data of 30 utility enterprises from 11 regions of Ukraine with different economic, demographic, climatic and administrative conditions. The conducted research confirms that the capital invested in the municipal enterprises does not increase their efficiency. Funding from a municipal budget without disclosure of the criteria for providing such resources does not enlarge the profitability of utility enterprises and often used to cover their losses, which lead to capital disruption. In order to increase the efficiency of utility enterprises and the fair distribution of municipal budget funds it was proposed to introduce the disclosure of additional information about capital formation; to strengthen the managers’ responsibility for the quality of publishing information with the introduction of special KPIs; and to conduct financial and performance audit, including in terms of capital formation.

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Section
Integration System of Education, Science and Production
Author Biographies

Yulia Slobodyanik, Kyiv National Economic University named after Vadym Hetman

Doctor of Economics, Professor of the of the Audit Department of Kyiv National Economic University named after Vadym Hetman

Member of the Audit Chamber of Ukraine, certified auditor in Ukraine.

Kateryna Bagatska, Kyiv National University of Trade and Economics

Ph.D. in Economics, Associate Professor of the Business Economy Department at Kyiv National University of Trade and Economics (Ukraine). She is an author and co-author of more than 90 scientific works on the topic of corporate finance, financial statement analysis, financial management, and value-based management. She is a Senior Analyst and Consultant of the consulting company majoring in topics of local economic development, real investment improvement, and financial management of municipal utility companies.

Scientific interests: corporate finance, financial analysis, equity formation, and management.

 

Hanna Silakova, Kyiv National University of Trade and Economics

Ph.D. of Economics, Associate Professor of the Department of Economics and Business Finance at Kyiv National University of Trade and Economics.

She is a member of the non-government organization "Federation of Auditors, Accountants, and Financiers of the AIC of Ukraine", the author of more than 70 scientific works.

She has practical experience in Accounting and Management of corporate finance in small and medium businesses.

Scientific interests: capital, finance, financial resources, investments, innovations, financial and economic security of the enterprise.

ResearcherID:  ABC-2110-2020

Liudmyla Krot, Kremenchuk National Mykhaylo Ostrogradskiy University

Candidate of Science (Economics), Associate Professor Department of Accounting and Finance, Kremenchuk National Mykhaylo Ostrogradskiy University.

Teaching courses: history of economic thought, economic theory, microeconomics and macroeconomics, social insurance, insurance services, international finance.

Research interests: finance history and theory, financial aspects of local government activities, features of economic entities financial activities, problems of the insurance market function.

Alina Korbutiak, Yuriy Fedkovych Chernivtsi National University

Ph.D. in Economics  Department of Public, Corporate Finance and Financial Intermediation, Yuriy Fedkovych Chernivtsi National University, Сhernivtsi, Ukraine. She teaches disciplines taught: Budget Management, Public Finance, Treasury Budget Execution System, Financial Policy, Territorial Communities Finance. Author of more than 75 scientific works.

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