The Conceptual Foundations for the Formation of the Enterprise’s Financial Architecture

Abstract

The article is aimed at researching the conceptual foundations for the formation of the financial architecture of enterprise and establishing the relationship between them. It is defined that the concept of «financial architecture» is used at macro and microeconomic levels and convey different meanings. Two basic approaches are identified to its definition: as a dynamic system, and as an aggregate of certain elements. After the systemization of existing approaches to the interpretation of financial architecture, the author’s own understanding of this concept is provided. It is defined that the main purpose of the enterprise’s financial architecture is to ensure the growth of the market value of the business and to satisfy the interests of the owners of the enterprise as the main stakeholders. The main elements of the enterprise’s financial architecture are the structure of property, structure of capital, corporate management and control, as well as the financial model. The basic principles of formation of financial architecture are proposed. The relationship between the financial architecture, financial strategy and business model of enterprise are defined.

Keywords

• structure of capital
• structure of property
• corporate management
• financial model
• strategy