A MODEL FOR ASSESSING THE EFFECTIVENESS OF STATE-OWNED ENTERPRISES BY FINANCIAL INDICATORS: ANALYSIS AND IMPROVEMENT

Abstract

B a c k g r o u n d . The relevance of this study is determined by the novelty of the corporate governance practice regarding the annual approval of Order for specific financial indicators of state-owned enterprises and the corresponding model for calculating the integral evaluation indicator. The I study aims to identify potential ways to improve the quality of results obtained through the application of the model. The object of the study is the methodological approaches to assessing the effectiveness of state-owned enterprises, while the subject is the compliance of financial ratios with the model for evaluating specific financial indicators, as well as the volumes of payments to the state, budget financing, and quasi-fiscal operations concerning sectoral and other distinctive characteristics of enterprise activities.

M e t h o d s . The study utilized critical analysis methods, test-mode financial indicator calculations, synthesis of generalized conclusions, and comparative analysis to identify similarities between the national model and the IMF SOE Healthcheck Toolkit, which serves as an international standard for assessing the financial efficiency of state-owned enterprises.

R e s u l t s . A comparative analysis of the two methodological tools revealed that the national model is more well-thought-out than the IMF instrument but still requires refinement. The article presents a list of potential ways to improve the results obtained through the model by addressing methodological shortcomings in its construction. The main problematic aspect of the model–its lack of consideration for sectoral specifics–was identified and illustrated through a practical application to a financial sector enterprise. Based on the results, recommendations for improving thequality of evaluation were provided.

C o n c l u s i o n s . The integral indicator calculation model is generally a useful tool for assessing the financial health of state-owned enterprises but requires certain refinements by its developers. Special attention should be paid to adapting the model's coefficients to the needs of financial sector enterprises, as the study found that a significant portion of the indicators is unsuitable for evaluation, distorting the actual financial condition of enterprises. Based on the analysis results, a series of recommendations were provided to enhance the methodological aspects of the implemented assessment model.