Principles of financial management in Ukrainian agribusiness companies

Serhiy Zabolotnyy

Zabolotnyy, Serhiy; ORCID: 0000-0003-4701-0495
Principles of financial management in Ukrainian agribusiness companies
Zasady zarządzania finansami w przedsiębiorstwach z sektora agrobiznesu na Ukrainie
Zarządzanie Finansami i Rachunkowość, 2016, vol.4, nr 4, s. 63-75

Key words

financial management capital budgeting capital structure agribusiness

Abstract

The goal of the research is to study current practices of financial management in Ukrainian companies from agribusiness sector. Ukrainian managers applied a multidimensional approach in financial management oriented on such goals as sustainable growth, continuity and maximizing profits. A great importance of control, analysis and reporting in financial management derived from a need for detailed financial information for board and shareholders as well as for Ukrainian tax authorities and other governmental bodies. Efficient working capital management was a necessary condition for continuity of operations in highly volatile Ukrainian market. The most preferable capital budgeting technique was profitability index, while net present value and internal rate of return were less popular. Ukrainian managers were strongly supporting the pecking-order theory of capital structure.