Bìznes Inform (Aug 2020)
Developing the Anti-Crisis Regulation Instrumentarium for the Corporate Sector in the Face of Global Crisis Phenomena
Abstract
The article analyzes the economic status of the corporate sector of both Ukraine and Europe during the period of the unpredictable global crisis phenomena examplified by the COVID-19 pandemic. The overall impact of coronavirus on corporations, also the problem areas in their operation, adaptability to crisis and perspectives are determined. A number of indicators for estimating the situation are considered, as follows: GDP, level of unemployment, level of profitability, net profit, net profit/loss balance by sector, business activity index, etc. For the analysis, data obtained for 2019 and 1st quarter of 2020 were used – for the most accurate assessment and determination of the dynamics of indicators and the impact of the COVID-19 upon them. Particular attention was paid to the balance of net profit/loss in terms of types of activities. The above mentioned information showed which sectors of the economy suffered the biggest losses, and which, on the contrary, stood in crisis. Speaking of Europe, the analysis of financial and non-financial sectors of the economy was carried out, including: the contribution of components into the growth of net business income and the income from net lending/borrowing. This information showed that the non-financial sector suffered a particularly negative impact, and the net business income of financial corporations was, in turn, quite stable. As of net lending/borrowing, it is identified an increase of demand for credit funds from non-financial corporations and a very minor impact of the coronavirus on the net income of financial corporations. In general, conclusions on the status of Ukrainian corporate sector during the pandemic along with priority directions of development of Ukrainian corporations are formulated. In addition, the mechanism for anti-crisis regulation of the corporate sector in the face of global crisis phenomena on the part of the State, corporations and business associations is elaborated. This mechanism includes measures that will allow to get prepared as much as possible for crisis phenomena and prepare different options for functioning during the crisis in advance.
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