Yehorova Olena, РhD in Economics, Assосіate Prоfessоr оf Deрartment оf Eсоnоmіс Theоry and Eсоnоmіс Researсh, Роltava State Agrarіan Aсademy, Роltava, Ukraine

ORCID ID: 0000-0002-6868-2103
e-mail: olena.iegorova@pdaa.edu.ua

Doroshenko Andrii, РhD in Economics, Assосіate Prоfessоr оf Deрartment оf Eсоnоmіс Theоry and Eсоnоmіс Researсh, Роltava State Agrarіan Aсademy, Роltava, Ukraine

ORCID ID: 0000-0002-6314-1586
e-mail: doroshenko82_a@ukr.net

Kononenko Zhanna, РhD in Economics, Assосіate Prоfessоr оf Deрartment оf Eсоnоmіс Theоry and Eсоnоmіс Researсh, Роltava State Agrarіan Aсademy, Роltava, Ukraine

ORCID ID: 0000-0003-0074-8249
e-mail: konon_ukr@ukr.net

Factors of the Development of the Financial Crisis of Agrarian Enterprises

Abstract. Introduction. It has been substantiated that monitoring of the financial crisis development probability is relevant for any enterprise. It is established that the traditional approach of predicting the development of the financial crisis by financial ratios does not take into account the impact of the risks of activity and factors that are the root causes of problems.

Purpose. The purpose is to substantiate the need to take into account risk factors in the agricultural sector of Ukraine when assessing the probability of financial crisis of agricultural enterprises development.

Results. Factors that increase the probability of financial crisis in an agricultural enterprise were generalized. The most significant threats to agricultural enterprises were identified: dependence on natural and climatic conditions and biological processes that cannot be accurately predicted and controlled, situation on the certain products market, seasonality of production, size and level of specialization of an enterprise, use of leased land, etc. Typical negative effects of threats on the financial state of an enterprise were noted: loss of assets, reduction of highly liquid assets, significant decrease in income, increase of expenses, and as a consequence extra loss appears. It was proved that the considered threats cannot be ignored when constructing a model of probability of financial crisis development. To assess the risk, it was proposed to use a method of peer review with the involvement of a team of at least 3 people – employees of the enterprise and independent professionals. Experts analyzed the risks using a system of indicators for the most threatening risks. According to the results of the examination, the object of study belongs to the relevant group of enterprises: with low, acceptable or critically dangerous level of risk of financial crisis. Enterprises that are at risk of financial crisis are advised to develop a plan to prevent it. It should include measures to prevent those factors that have been identified as the most threatening.

Conclusions. Thanks to a comprehensive approach the combination of financial indicators and quantitative assessment of risks that have the greatest impact on the livelihoods of agricultural enterprises will improve the accuracy of assessing the prospects of financial status of enterprises in the industry.

Keywords: financial crisis; agriculture; threats; sectoral risks.

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