Economics, Finance and Management Review 2020-04-17T00:06:00+03:00 Iryna Mihus Open Journal Systems Economics, finance, accounting, auditing, management FACTOR ANALYSIS OF PROFITABILITY (LOSSES) CONSTRUCTION ENTERPRISES IN 1999-2019 2020-04-17T00:01:08+03:00 Olha Bіelіenkova <p><em>Decomposition of Return on Equity (ROE) after Return on Assets (ROA), Return on Sales (ROS), Total Assets Turnover (TAT) and Equity Multiplier (EM) provides an analytical framework appropriate for observing factors that make and influence profitability.</em> <em>An analysis of the literature ma</em><em>k</em><em>e</em><em>s</em><em> it clear that classic and modified DuPont models are widely used to analyze the profitability of many industries, including construction. Despite critical feedback from some scientists, this method remains a useful tool for identifying factors influenc</em><em>ing</em><em> the effectiveness of an enterprise, industry, or region.</em> <em>Aims - to calculate the profitability indicators of </em><em>the </em><em>"construction"</em> <em>activity enterprises in 1999-2019, to analyze their dynamics and to identify the reasons for the changes.</em> <em>Methods is a widely used Dupont profitability analysis method that involves decomposing the outputs into components </em><em>in order </em><em>to identify the effects of those components on the outcome.</em> <em>The profitability indicator analysis of "construction" activity enterprises in 1999-2019 revealed that the construction industry operated at a loss for a decade in a row (2008-2017), which is reflected primarily in the capital structure. During these years, equity decreased to a critical level; in 2015, uncovered losses exceeded the amount of authorized and reserve capital. Only in 2018 the situation started to level off. Factor analysis of profitability indicators has revealed the in depth factors that affect them, namely: loss of the main activity of construction enterprises for ten consecutive years, which caused a decrease in equity to a critically low level and, accordingly, high values of financial leverage</em><em>.</em><em> It can be seen that </em><em>while</em><em> in the 2000s, the volume of general sources of financing (the amount of liabilities) was 3.65 times higher than the amount of construction capital, in 2009 - 5.2 times, </em><em>it was</em><em> 15.5 times in 2019. Therefore, the reverse direction of the financial lever should also be considered. In the case of profitable activity, the financial lever will allow to reach high values of return on equity. But in times of crisis or continuation of a downward trend, this can lead to a loss of financial sustainability in the construction sector.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) THE PREREQUISITES FOR THE FORMATION OF BUSINESS STRUCTURES IN THE CONTEXT OF MODERN GLOBALIZED SPACE 2020-04-16T23:52:19+03:00 Mykola Denisenko Zorina Shatska <p><em>It is proved that the development of modern business is influenced by many external factors, were named «global problems» of humanity. Annually, the number and depth of humanity's global problems is only increasing. It is proved that all global problems are interconnected and form the so-called “global syndrome”. Finding out about the global problems of humanity will help you better understand the future prospects for the development of world and individual businesses. It is determined that the world business is now in the third wave of development namely “prosumer economics”; changing views on the effectiveness of the enterprise; reorientation and transformation of mass production enterprises to small-scale or flexible production under the order of a specific consumer; transform large corporations, reorienting themselves into business structures; transition of the world business to the active use of information technologies. These trends indicate a change in the modern sustainable account a new stage of the evolutionary development of world business and modern global trends in the formation of business structures. The prerequisites for the formation of business structures are generalized.</em> <em>The main prerequisites for the formation of renew business structures in the context of modern globalized space are the following: permanent changes in the external and internal economic conditions of an enterprise, caused by instability of socio-economic processes in the national economy, to which it must constantly adapt;the modern enterprise must reach the mega level, becoming a subject of international relations, joining the pegonal and economic and economic associations and transnational corporations, international corporations; by increasing the convergence process as a long-term goal of convergence between countries or regions, due to the impact of globalization and the rise in investment potential, the speed of experience and technology; implementation of new ways of organizing production and marketing of products due to the rapid development of new technologies, global processes of globalization and integration; formation of a single system of international planning and distribution of material goods, the formation of a joint world-wide government in context to transformation (or merger) into a complex integrated business structure.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) CERTAIN ASPECTS OF ECONOMIC RELATIONS BETWEEN SERBIA AND GERMANY 2020-04-17T00:01:57+03:00 Branko Tešanović Aleksandar Neševski Vera Krmpot <p><em>Germany has been and still remains the leading European economy and one of Serbia's leading economic partners. In recent years, Germany has been Serbia's most important foreign trade partner within the European Union and one of the leading partners in the area of free zone traffic, high technology transfer, education of Serbian experts, donations and humanitarian aid.</em> <em>German management is known for its quality, as well as for concluding long-term jobs, which is of great importance for Serbia in establishing quality and successful economic relations with the world. With the help of Germany, Serbia can secure a greater market position in the world, especially in the fields of agriculture, textile, chemical, metas, food industry, as well as consumer goods.</em> <em>Stable business relations have been built between Serbia and Germany over the last few years, their progress is conditioned by a number of factors, but above all by Serbia's progress from the point of view of Germany, both economically and politically. Trust and partnership have become an important link in which the two countries confirm their commitment to common European values.</em></p> <p><em>Despite a number of factors that drive them closer economic activity, Germany and Serbia are nowhere near the maximum level of co-operation or harnessing their full potential in the sphere of economic exchange. The coming years represent a period in which it will become clearer whether the level of cooperation will rise to a qualitatively and quantitatively higher level, or whether to abandon that ambition and continue according to established stereotypes.</em> <em>Serbia's membership of the European Union is a goal that has been pursued since the 2000 changes. The majority of the population agreed that change was needed for the better.</em> <em>Negotiations on the Stabilization and Association Agreement, which Serbia began in October 2005, were finalized in March 2012 with Serbia's candidate status for the European Union. In January 2014, the 1st Intergovernmental Conference between the European Union and Serbia was held. Candidate status is a new impetus for a more intense confrontation of Serbia with various foreign and domestic challenges and an impetus for internal reforms as an integral part of the European integration process. Modernization of the country and further resolution of the problems of Kosovo and Metohija are just some of the challenges in which Germany, with the support of Serbia, is trying to impose its views. The global economic crisis, the Eurozone crisis, the migrant crisis, as well as the economic sanctions imposed on Russia, have led to new global trends and changes both in the international environment and in the process of European integration. These changes impose a rethinking of Serbia's foreign policy and aligning its priorities with the aforementioned trends. The first is certainly the crisis in the European Union, which significantly affects the decline in support of Serbian citizens for EU integration. On the other hand, without the support of the European Union, and especially of Germany, Serbia could face new difficulties in its socio-economic development. </em></p> 2020-03-25T00:00:00+02:00 Copyright (c) COMPLEX EVALUATION OF COMPETITIVENESS OF AGRICULTURAL ENTERPRISES 2020-04-17T00:03:23+03:00 Ordgy Leonard Chibuzor <p><em>The </em><em>objective</em><em> of the article is to determine a </em><em>complex</em> <em>evaluation</em><em> of competitiveness of agricultural enterprises. It is established that the analysis of the activity of an enterprise </em><em>regarding</em><em> increas</em><em>ing</em><em> its competitiveness involves an assessment of the achieved level of utilization of available potential (organizational, technical, production</em><em> and </em><em>technological, social, economic, etc.). Modern world and </em><em>local</em><em> methods for determining competitiveness at different levels </em><em>have been</em><em> considered.</em><em> The </em><em>competitiveness factor</em><em>s</em> <em>against the </em><em>state level </em><em>have been</em><em> analyzed and it is stated that in relation to economic entities and agricultural enterprises, in particular for the objective </em><em>evaluation</em><em> of competitiveness, the </em><em>evaluation</em><em> should be supplemented by such indicators as profitability of production, labor productivity, conformity of prices to solvent demand of the population. The well-known approaches to </em><em>evaluating</em><em> competitiveness of agricultural products </em><em>have been</em><em> analyzed, and it </em><em>ha</em><em>s </em><em>been revealed</em><em> that they do not take into account such indicators as climatic conditions, location, labor, material</em><em>,</em><em> energy </em><em>capacity</em><em>, etc.</em></p> <p><em>It has been stated about the necessity to take into account economic and technical parameters (they determine the profile of a product in terms of its falling under a certain type or class of products), including constructive ones that reflect technical and engineering solutions inherent in a certain type of products, as well as regulatory parameters (compliance with standards, norms, rules). It has been stated that the competitiveness of new goods should be outstripping. The need to consider the strategy of competitors has been identified. The basic directions of formation of a system for ensuring necessary competitiveness of production has been proposed. The complex evaluation model of competitiveness of the enterprise has been suggested. It is stated that the more successful the tasks of social, ecological and economic nature are solved in a specific organizational and production entity, the more stable its position is in the internal and external consumer markets and the higher its competitiveness is.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) ISLAMIC CONCEPT OF FINANCING AS PROJECT AND SAFE FOR THE DEVELOPMENT OF SOCIAL SUPER-SYSTEM 2020-04-17T00:03:47+03:00 Vladimir Sidak Tatiana Yegorova-Gudkova Maksim Bojko Andrej Krygin Oleg Zvirkov <p><em>This article solves the problem of variation of efficiency of the state's economic security system, which provides stability and security of banking activities. The functioning of banks is one of the most important priorities on which the investment attractiveness, sustainability, solvency, reliability and further development of the state economy depend. Both traditional banks and Islamic banks function in the world. The Islamic concept of financing is based on the Islamic doctrine of usury and interest, and prohibits interest rate and loan capital as a basis for usury. A more modern name for this type of banking is partnership banking. There are around 300 Islamic banks in 80 countries in the world and only 40% of them are in Arab countries. Interest in Islamic banking increases interest-free financing by more than 20% annually. The banking system of the state should include not only traditional banks, but also banks that use the partner financing system. This will contribute to the development of competition, increase the quality of banking services and expand the range of banking products offered. The banking system of the state should be an ensemble of various stakeholders.&nbsp; It can be described as Application of сenology approach to the development of theory and methodology of&nbsp; economic security&nbsp; of state on the basis of the theory of systems, trans-disciplinary approach of the law of structural harmony of system.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) APPLICATION OF INNOVATIVE SMART TECHNOLOGIES OF VIRTUAL REALITY IN BUSINESS EDUCATION AS THE BASIS OF QUALIFIED PROFESSIONAL PREPARATION OF FUTURE MANAGERS 2020-04-17T00:04:07+03:00 Volodymyr Panchenko Yaroslav Haleta Oleksandr Chernenko <p><em>The article describes the possibilities of using one of the promising educational methods offered by modern informational technologies – virtual reality, which is modeled with special computer equipment. The authors of the article substantiate the possibility of using virtual reality technologies in the educational process to improve the quality of professional preparation of future managers. In the era of information and communications technology one of the modern needs is to create a virtual learning environment. Virtual learning environment is created and developed for effective communication of all participants in the educational process. Information and communication technologies now make it possible to use electronic versions of printed books, textbooks and manuals, or a new type of (multimedia tools that use a computer, a multimedia projector and sensor board) for the educational environment. The definition of the essence and classification of types of innovations in education are given. The notion of "smart-learning" is defined and the prospects of its application are described. The experience in using the virtual reality technologies in the educational process is systematized and generalized. In addition, the views of various scholars on the essence and characteristics of the virtual educational environment are analyzed in the article. The application of methods of modeling and management of business processes at practical classes of students-managers is substantiated. The author's definition of the concept of manager's readiness for professional activity is offered. The pedagogical model of application of smart-technologies of virtual reality in the educational process is developed. The authors describe the main results of their pedagogical experiment on the possibilities of using smart-technologies of virtual reality in the educational process of professional preparation of students-managers. The results of the experiment are substantiated by statistical calculations, formulas, tables. It is proved that the usage of smart-technology of virtual reality helps to increase the level of quality of future managers' professional preparation and their readiness to professional work.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) THEORETICAL AND METHODOLOGICAL ASPECTS OF INTEGRATION RATIONAL APPROACH TO BUSINESS PROCESS MANAGEMENT 2020-04-17T00:04:35+03:00 Olena Herasymenko <p><em>The author explores the possibilities of using risk-oriented approach to business process management to ensure the economic security of enterprises. The purpose of this work is to study the theoretical and methodological aspects of risk management and, on their basis, to build a risk-oriented approach to management with subsequent integration into all business processes of the enterprise to ensure the economic security of the enterprise. During the research of problems of formation and integration of risk-oriented approach to management in the process of ensuring the economic security of the enterprise, and the method of synthesis was used - in the formation of individual elements of the structure of risk-oriented approach to manage in the process of ensuring the economic security of the enterprise; peer review method - to determine the priority of the identified risks of enterprises, to determine the weight of the selected methods and techniques during the identification, analysis and assessment of risks in the process of ensuring economic security. To provide a systematic approach to risk management an algorithm for processing risk using the recommendations ISO / IEC 27005 is proposed. A Risk acceptance scheme was created. Directions for improving EBITDA through risk management measures have been identified. The level of maturity of risk management systems is interrelated with the level of maturity of information technology. The necessity to increase the level of knowledge and competencies of specialists who provide economic security at enterprises is confirmed by studying the risk oriented approaches to business process management.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) DIGITALIZATION OF THE EMPLOYMENT PROCESS IN COMPANIES 2020-04-17T00:05:00+03:00 Dragana Radosavljević Maja Anđelković Nevena Krasulja <p><em>From the First industrial revolution, it became clear that the work of humans would replace machines. In today</em><em>¢</em><em>s digital world, where human and artificial intelligence coexist, finding and retaining good workers is an increasingly challenging task for human resource manager. Jobseekers and jobseekers have digitized the recruitment process, through recruitment tools (social networks) and selection (software), with the goal of accelerating and wanting to be ahead of the competition. Digitization has led to the development of new for both candidates and HR professionals. </em></p> <p><em>Technological advances have shut down some jobs, but new, less labor intensive jobs hve emrged that require creativity and critical thinking. In supoort of this is the fact total number of unemployed has not increased.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) SCHOOL RANKINGS: THE US EXPERIENCE AND OPPORTUNITIES FOR UKRAINE 2020-04-17T00:05:21+03:00 Liudmyla Sumbaieva <p><em>Ukrainian education continues to </em><em>take</em><em> a </em><em>way of </em><em>reform</em><em>s</em><em> that covers all its levels, and </em><em>on this way</em><em> we are approaching the stage of improving the national ranking system of higher education</em><em>al</em><em> institutions and creating a ranking methodology for those types of educational institutions that are not currently covered by it. This is especially important today when the issues of financing the education</em><em>al</em><em> system</em><em> are under recononsideration. This implies primarily to </em><em>higher education</em><em>al</em><em> institutions, which must prove their need for existence in order to ensure the labor market, competitiveness and efficiency.</em><em> As the global practice shows, ranking is a strong indicator of the future forecast for an educational institution as those institutions, that take a serious approach to it and the place they take in those ratings, do not consider consolidated lists merely as a PR tool, but systematically evaluate how they meet the modern requirements, analyze the factors that affect the rating, improve the level of academic quality and academic reputation, have all the opportunities for stable economic development, which gives them the opportunity to confidently look into the future.</em></p> <p><em>In our view, research, analysis and, in the long term, the introduction of elements of world experience are important for improving the national rating system. The objective of our article is to study the rating experience in the United States based on the ranking system example of U.S. News and World Report "America's Best Colleges." This system has a time-tested methodology that is being constantly updated to respond to changes in the society, the needs of the economy and the labor market. The article analyzes and summarizes the main approaches of the methodology and the latest data released on October 15, 2019. The study is of practical importance, since the results of the systematization of the basic methodology principles of the U.S. news regarding rating of higher educational institutions rating may be effectively used in national practice.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) ACADEMIC INTEGRITY IS AN EXTENSION OF YOUR OWN PERSONAL INTEGRITY 2020-04-17T00:05:39+03:00 Ali Abdalqhadr <p><em>The aim of this research is Investigation in role universities in building and enhancing the integrity of students, especially university students, And merge it with the activities and ideas of social responsibility, In order for integrity and responsibility to become a personal culture adopted by students, and not just laws and regulations that limited in the period of study. and reflection that on society as a whole. The researcher used descriptive analytical approach in focus on previous studies that focused on the important role of educational institutions in building and improving student behavior by promoting programs of academic integrity.&nbsp; and The results have indicated that develop programs of integrity&nbsp; and merge it with social responsibility ideas&nbsp; will have a prominent role in shaping and support the Honest and responsible personality of students the future .</em></p> 2020-03-25T00:00:00+02:00 Copyright (c) MANAGEMENT OF CONSTRUCTION ENTERPRISES IN THE LEADING COUNTRIES OF THE WORLD: MACROLEVEL 2020-04-17T00:06:00+03:00 Vasyl Dmitrenko <p><em>The article identifies the peculiarities of managing the activity of enterprises of the construction industry at the macro level in the leading countries of the world, such as: USA, Canada, Great Britain, Germany, France and other EU countries. The main directions of macro-regulation of activity of the enterprises of the construction industry are the bodies of state regulation of activity of the enterprises of the construction industry; legal support (licensing of construction activities; documenting the start of construction works; commissioning of a construction site, etc.), as well as technical regulation (requirements for the construction process, qualification requirements for workers, requirements for technical supervision, etc.). The common features, which are characteristic of most countries of the world regarding the macro-regulation of the activity of the construction industry enterprises are established: stable balance of economic and social interests of the participants of the construction market; refusal of the state from the established historical monopoly on the technical regulation of the construction market and the gradual transition to a system of technical self-regulation; high degree of economic and creative freedom of the objects of regulation; developed social and economic institutes of the construction industry; deep integration of the institutions of the construction industry of a particular state into a single world socio-economic system due to the harmonization of the principles of technical regulation, with the diversity of forms of implementation of these principles, taking into account national peculiarities; high level of building culture. The main differences in the macro-regulation of the activity of construction industry enterprises are identified, which are the technical regulation and legal support in different countries of the world, which depend on the individual conditions of development and activity of each individual state.</em></p> 2020-03-25T00:00:00+02:00 Copyright (c)