Impact of Financial Support on Textile Enterprises’ Development
Loading...
Date
2021-03
Journal Title
Journal ISSN
Volume Title
Publisher
Multidisciplinary Digital Publishing Institute
Abstract
The purpose of this study is to determine the mutual influence of financial security on
the textile enterprises development level. The proposed methodological approach is based on the
formation of an integrated financial security indicator and its regression model. The study is based on
16 textile enterprises in the European Union. Integral indicators on capital structure, current financing
sufficiency and financial efficiency of the investigated enterprises have been defined according to the
rapid diagnostics of financial provision of the textile enterprises. The state of financial support for the
studied companies’ development has been evaluated. It has been established that the development
of textile enterprises depends to a large extent on their financial support as a whole. The change in
the development level of companies depends substantially on the change in the integrated indicator
of their financial provision. In particular, textile enterprises’ development is significantly affected
by the capital structure and the predominance of equity in it, as well as current financing. The
financial efficiency factors taken into account do not have a significant impact on the development of
textile enterprises. This study proposes a financial security model, developed by partial integrated
indicators. It enables visual comparison, collation of the capital structure state, current financing and
financial efficiency of the studied enterprises with optimal value.
Description
Keywords
development, financial support, capital, deviation, regression, model
Citation
Impact of Financial Support on Textile Enterprises’ Development / Kateryna Boichenko, Mário Nuno Mata, Pedro Neves Mata,Jéssica Nunes Martins // Journal of Risk and Financial Management. – 2021.– Vol. 14, Iss. 3. – P. 1–19.