The Influence of Risks on the Financing Mechanism of Processing Industries of Agricultural Sector in Connection with Economics Cyclic Recurrence
Journal: Collection of Scientific Works of Kirovohrad National Technical University. Economic Sciences (Vol.30, No. 1)Publication Date: 2016-11-28
Authors : Maryna Lanova;
Page : 54-62
Keywords : risk management; government control; price support mechanism; economics cyclic recurrence; risk prevention;
Abstract
The objective of the given article is analyzing the aspects of influence of processing industries enterprises in the agricultural sector financing mechanism risks taking into account cyclic economic scheme with the purpose of enterprises economic financing mechanism improvement under market conditions. The influence of the financial risks on the activity of processing industries enterprises in the agricultural sector has been analyzed in the given article to define the necessary amounts of financial resources and their optimization, find out potential possibilities of processing industries enterprises in the agricultural sector as for their formation using their own funds and attracting external investors. In addition to this, the significance of economic indices fluctuations which provide certain risks for processing industries enterprises in the agricultural sector financing mechanisms implementation has been researched in the given article. Having analyzed the available statistical resources in the process of research the financial mechanism risks of processing industries in the agricultural sector due to economics cyclic recurrence have been defined. In our case analyzing Gross Domestic Product trend for the period of 1997-2015 we observe that the economic process belongs to TS class. It means that the shocks which appear from time to time are temporary, they do not change long term process development trajectory, the process itself always returns to a certain fundamental form (trend). Thus, the general economy state, people's consumption possibilities (their level of income), the inflation rate, the level of investments into the basic branch resources have been considered the macro level risks for processing industries enterprises in the agricultural sector.
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