FINANCIAL MECHANISMS FOR INCREASING THE COMPANY'S VALUE

Abstract

The purpose of the article is to determine the role of financial mechanisms for increasing the value of a company. To achieve this goal, the article summarized and concretized scientific approaches to identifying the impact of financial mechanisms, financial management on the value of the company to increase sustainable development and competitiveness of the enterprise. The author analyzes the essence, concept and composition of the financial mechanism; the elements of development and manifestation of influence; the complexity of the organization of financial relations in economic entities from the standpoint of the formation, distribution and use of financial resources by areas, levels and entities. In the work, the author notes vector positions in connection with the choice of the goal of the influence of financial mechanisms on the company's value, the methods and the directions for increasing capitalization, factors of increasing competitiveness, profit, efficiency. Management of the value of a real sector enterprise is based on a model of phased formation of the optimal option by comparing and controlling potential options for the optimal cost and maximum values of the logistic, optional cost, under current financial constraints and discounted cash flows. An important element is the gap between cost and value estimation, associated with subjectivity and incomplete awareness of the appraiser. In this regard, the choice of elements and strategic actions of the financial mechanism during capitalization should meet the expectations of owners, shareholders, and the interests of stakeholders. External recognition of the value of intangible assets provides innovative development of the organization for the future, a unified focus and coordination of actions, a strategy for an effective financial mechanism to manage costs and company value. An effective financial mechanism integrates current market value, intrinsic value, internal improvement value and maximum sales, balancing operational improvement and financial engineering into potential value.