The Impact of External Shocks on the Structure of Enterprise Financing: a Retrospective of 2000-2017

DOI

10.2991/iscfec-18.2019.111How to use a DOI?

Keywords

Far East, enterprise finance, regional economy, Khabarovsk Territory

Abstract

The authors carried out a research of changes in the structure of used financ-ing sources on the basis of activity monitoring of about 300 enterprises of the Khabarovsk Territory during 2000 - 2017. There were several external shocks (crisis periods) in the economy during the analyzed period: in 2004, 2008, and 2014. Enterprises operating in the re-gion have steadily increased dependence on external sources of finance (banking and corporate capital) throughout the observation period, while own funds have tended to be washed out and redistributed in favor of parent companies. At the same time, equity was used to cover unprofitable activities and re-payment of past years borrowings with the practical lack of the possibility of refinancing them on modern, more attractive terms, with significant interest rates reduction. The role of corporate loans replacing the regional potential of capital has sig-nificantly increased in the conditions of formation of vertically integrated structures. Accumulated during past years high debt load has formed a ten-dency to increase the debt burden on equity. Monitoring of the dynamics and the liabilities structure of enterprises al-lowed to identify stable dependencies in changing the structure of financing sources of the real sector of economy on the territory, which can be used in the development and implementation of countercyclical support programs for enterprises at the regional level.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - O. Ivanckenko
AU  - O. Renzin
AU  - A. Grigoreva
PY  - 2019/01
DA  - 2019/01
TI  - The Impact of External Shocks on the Structure of Enterprise Financing: a Retrospective of 2000-2017
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2018)
PB  - Atlantis Press
SP  - 489
EP  - 491
SN  - 2352-5428
UR  - https://doi.org/10.2991/iscfec-18.2019.111
DO  - 10.2991/iscfec-18.2019.111
ID  - Ivanckenko2019/01
ER  -