Effective decisions for individualized assessment and minimization of the risk of unfriendly takeover of enterprises: the features of the game theory application
-
DOIhttp://dx.doi.org/10.21511/ppm.17(1).2019.32
-
Article InfoVolume 17 2019, Issue #1, pp. 370-379
- Cited by
- 929 Views
-
123 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The conditions for doing business at this stage are often similar in a game in which you need to calculate your actions a few steps ahead. At the same time, it is important to highlight several possible current options and make the necessary decision at the control moment. Moreover, each of the options formed should be justified, understandable and take into account the risk factors and available resources.
Today, the main problem of assessing and minimizing the risk of “unfriendly takeover” is due to the fact that in most cases the raider is a player who acts quite legitimately and relies on the loopholes of the current legislative framework. Therefore, it is easier to identify possible actions of the raider and to avoid them within the limits of the reverse game than to deal with the consequences.
The purpose of the research is to study the specificity of the individualized assessment and minimization of the risk of “unfriendly takeover” by using elements of game theory.
It has been taken into account that the effect of individualization in assessing the risk of unfriendly takeover of enterprises can possibly be achieved on the basis of the application of game theory, the elements of which provide simulation of the unfriendly takeover process within the mathematical description of the inherent combinations of attack/defence as if they actually occurred in time both within one state of the external environment and for their given set.
The results allowed forming mathematical decision-making models based on the elements of the antagonistic game “raider-target enterprise” and “raider games with the external environment”, which proved the possibility to: 1) identify possible functions of wins/losses; 2) combinations of attacks that can be neglected (that is, from the point of view of the rationality of decisions, will be rejected by the raider); 3) the ranking of the raider’s “attack combinations” for the reliability of their use during “unfriendly takeover”. Under such conditions, the target company can provide not only a detailed assessment, but also an effective minimization of the risk of “unfriendly takeover” and allocate the best combination of protection.
- Keywords
-
JEL Classification (Paper profile tab)C50, C13, D74, C 70, D81
-
References20
-
Tables3
-
Figures1
-
- Figure 1. Algorithm of individualized estimation and minimization of risks of unfriendly takeovers of the enterprise
-
- Table 1. Payment matrix of LLC “TENT TRANS” – PJSC “Transcarpathia Auto”, based on the actions of the raider B1, thousand UAH
- Table 2. Aggregated payment matrix of LLC “TENT TRANS” – PJSC “Transcarpathia Auto”, thousand UAH
- Table 3. The results of the estimation of the attack combinations of LLC “TENT TRANS” according to the probability of use during hostile takeover, thousand UAH
-
- Bahamid, R. A., & Doh, S. I. (2017). A review of risk management process in construction projects of developing countries. IOP Conf. Series: Materials Science and Engineering, 271.
- Bartish, M. Ya., & Dudzyaniy, I. M. (2009). Дослідження операцій. Ухвалення рішень і теорія ігор [Doslidzhennia operatsii. Ukhvalennia rishen i teoriia ihor] (278 p.). Lviv: Vydavnychyi tsentr LNU im. Ivana Franka.
- Bartkіv, O. M. (2012). Чорне рейдерство як спосіб захоплення [Chorne reiderstvo yak sposib zakhoplennia pidpryiemstva]. Stratehichni orientiry.
- Biliak, Y. V. (2013). Причини зростання масштабів рейдерських захоплень в Україні: причини виникнення, типи і види рейдерських схем [Prychyny zrostannia masshtabiv reiderskykh zakhoplen v Ukraini: prychyny vynyknennia, typy i vydy reiderskykh skhem]. Investitsii: praktyka ta dosvid, 12, 44-48.
- Borek A., Parlikad, A. K., Webb, J., & Woodall, P. (2014). Introduction to Enterprise Risk Management (Chapter 4). In Total Information Risk Management: Maximizing the Value of Data and Information Assets.
- Burbelo, O. A. (Ed.), Ramazanova, S. K. (Ed.), Zaets, O. M., Gudima, T. S., & Kuzmenko O. M. (2015). Економічна безпека підприємства в умовах рейдерських загроз [Ekonomichna bezpeka pidpryiemstva v reiderskykh zahrozakh] (285 p.). Severodonetsk: Vydavnytstvo “SNU imeni Dalya”.
- Debnath, A., Bandyopadhyay, A., Roy, J., & Kar, S. (2018). Game theory based multi criteria decision making problem under uncertainty: a case study on Indian tea industry. Journal of Business Economics and Management, 19(1), 154-175.
- Dikan, V. L., & Zaytseva, I. Y. (2009). Oцінка та аналіз рівня захисту підприємств автотранспорту від недружніх поглинань на основі економіко-математичних методів [Otsinka ta analiz rivnia zakhystu pidpryiemstv avtotransportu vid nedruzhnoho pohlynannia na osnovi ekonomiko-matematychnykh metodiv]. Visnyk ekonomiki transportu i promyslovosti, 26, 76-85.
- Ilchenko, Yu. V., & Grischenko, A. O. (2011). Оцінка методологічних підходів вимірювання рівня захисту підприємств від ворожих поглинань [Otsinka metodolohichnykh pidkhodiv vymiriuvannia rivnya zakhystu pidpryiemstv vid vorozhykh pohlynan]. Zbirnyk naukovykh prats Natsionalnoho tehnichnoho universitetu, 24(1), 318-321.
- Marks, N. (2015). World-Class Risk Management (234 p.). North Charleston: Create Space Independent Publishing Platform.
- Myšková, R., & Doupalová, V. (2015). Approach to Risk Management Decision-Making in the Small Business. Procedia Economics and Finance, 34, 329-336.
- Nесhау, V. О. (2009). Схеми недружнього поглинання (рейдерство) [Skhemy nedruzhnoho pohlynannia (reiderstvo)]. Efektyvna ekonomika, 4.
- Oleksyuk, N. V. (2017). Методи захисту від корпоративного рейдерства [Metody zakhystu vid korporatyvnoho reiderstva].
- Schröter, H. G. (Ed.) (2008). The European Enterprise: Historical Investigation into a Future Species (81 p.). New York: Springer Science and Business Media.
- Sogrina, N. S. (2010). Методика оценки риска недружественного поглощения (рейдерства) в трансформируемой экономике [Metodika otsenki riska nedruzhestvennogo pogloshcheniya (reyderstva) v transformiruyemoy ekonomike]. Nauchnyy vestnik Chelyabinskogo gosudarstvennogo universiteta, 5(25), 166-172.
- Sum, R. M. (2013). Risk management decision making. In Proceedings of the International Symposium on the Analytic Hierarchy Process 2013, at Kuala Lumpur.
- Vershinin, A. V. (2008). Методика оценки риска недружественного поглощения для предприятия [Metodika otsenki riska nedruzhestvennogo pogloshcheniya dlya predpriyatiya]. Nauchnyy vestnik Kazanskogo tehnologicheskogo universiteta, 6, 280-284.
- Virchenko, V.V. (2011). Передумови та методи недружнього поглинання суб›єктів господарювання [Peredumovy ta metody nedruzhnoho pohlynannia subiektiv hospodariuvannia]. Teoretychni ta prykladni pitannia ekonomiky, 24, 236-244.
- Wu, D., Olsen, D. L., & Dolgui, A. (2015). Decision making in enterprise risk management: A review and introduction to special issue. Omega, 57(A), 1-4.
- Zelenytsіa, I. M. (2012). Захист прав учасників корпорацій від недружніх поглинань [Zakhyst prav uchasnykiv korporatsiy vid nedruzhnikh pohlynan]. Naukovyi visnyk Natsionalnoho tehnichnoho universitetu Ukrainy, 3(15), 146-150.
