Assessment of the level of financial and economic security at machine-building enterprises: evidence from Ukraine

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Determining the level of financial and economic security of an enterprise allows assessing the real possibilities to confront internal and external challenges and defining the potential for future development. To develop proposals on assessing this level, the study uses data on machine-building enterprises of Zaporizhzhia region (Ukraine) and applies integral method, regression analysis and normalization. The expert evaluation method was used to form the system of key parameters. The experts were economists, the accounting departments’ and the economic security departments’ members of the studied enterprises. The experts selected six indices that they consider to be the most representative of the financial and economic security of an enterprise. These parameters were used to calculate the integral indicator of the level of financial and economic security of enterprises. Harrington’s approach was used to group enterprises according to their level of financial and economic security (very high, high, steady, satisfactory and unsatisfactory). The calculations have shown that the integral indicator of financial and economic security of the enterprises of Zaporizhzhia region ranged from 0.32 to 0.66 for the period 2014–2018. It was justified that along with the support of financial stability, solvency, business activity, profitability, investment attractiveness and innovativeness and absent sharp changes in the environment, the level of financial and economic security of machine builders will increase from 0.4 to 11.9%.

Acknowledgment
The study was carried out within the framework of the state budget theme (state registration number 0117U000512), Establishment of Business Incubators on the Basis of Innovative Development and Ensuring National Financial and Economic Security (2017–2019), Faculty of Economics, Zaporizhzhya National University.

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    • Figure 1. The forecast of financial and economic security integral indicator’s value for enterprises under study
    • Table 1. Generalized indicators (factors) of financial and economic security
    • Таble 2. Weighting coefficients of financial and economic security indicators’ groups
    • Таble 3. Group integral indicators of the studied enterprises
    • Таble 4. Classification of the levels of business financial and economic security
    • Таble 5. General integral indicators of financial and economic security of mechanical engineering enterprises of Zaporizhzhia region, 2014–2018
    • Таble 6. Correlation and regression analysis of group indicators of business financial and economic security
    • Таble 7. Types of mathematical correlation between general integral indicator of business financial and economic security and the selected group indicators
    • Таble 8. The models of correlation between the integral indicator of business financial and economic security and its components
    • Таble 9. Calculation of annual average growth rates of group integral indicators and their projected values