Theoretical aspects of evaluating the effectiveness of financial levers

Irina Mamontova
Applicant of Financial Management and Stock Market Department, Odessa National Economic University, Ukraine, e-mail: erenem84@gmail.com, ORCID ID: https://orcid.org/0000-0003-0986-2152

Cite this article:

Mamontova, I. (2021). Theoretical aspects of evaluating the effectiveness of financial levers [Teoretychni aspekty otsiniuvannia rezultatyvnosti dii finansovykh vazheliv], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 1 (76), pp. 135–143.

Abstract

The article considers the theoretical aspects of evaluating the effectiveness of financial levers. The subject of the research is the approaches to the formation of financial levers groups and determining their impact on the economic entities activities in special (free) economic zones. The purpose of the article is to highlight the approaches to assessing the effectiveness of financial levers action. The research methodology is general scientific and special methods. The article determines the main approaches to the selection of indicators for assessing of business entities activities, taking into account the specifics of their functioning in special (free) economic zones. It is noted that today an analysis of the effectiveness of financial levers is not carried out on a regular basis, various indicators are used, and there is no systematic approach. Financial levers are an integral part of the financial mechanism and they operate in conjunction with its other elements. Therefore, the evaluation of the effectiveness of financial leverage using should be carried out taking into account the purpose of their use and the period of obtaining the expected results. Generalization of approaches to the analysis of the effectiveness of financial levers made it possible to propose to evaluate their action on the following grounds: in accordance with the sphere of manifestation of efficiency – economic, social, budgetary and environmental; in accordance with the period of obtaining the expected results – efficiency in the short, medium and long term; in accordance with the level of manifestation – efficiency at the national, regional, sectoral levels, the level of enterprises and individual specially selected territories. In accordance with the proposed system of indicators, calculations were carried out, which showed an ambiguous result of the influence of financial levers on the business entities activities. The conducted research and existing positive foreign experience made it possible propose to develop a concept for the special zones creation with a balanced system of financial levers.

Keywords

financial levers; performance indicators; special economic zones; the effectiveness of financial leverage action.

JEL classification: G320; Н110; Н220; DOI: https://doi.org/10.33987/vsed.1(76).2021.135-143

UD classification: 336.02:332.122

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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