THE IMPACT OF BUDGET FINANCING ON THE MUNICIPAL-OWNED ENTERPRISES PERFORMANCE: CASE OF KYIV CITY
In recent years, many European studies have focused on municipal companies’ problems, particularly their efficiency in terms of public importance and quality of services provided and return on capital. These issues are directly related to the current series of topical issues of the expediency of pu...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
FINTECH Alliance LLC
2023-06-01
|
| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
| Subjects: | |
| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/4060 |
| _version_ | 1797698770204360704 |
|---|---|
| author | Kateryna Bagatska Hanna Blakyta Oksana Melnychuk Tetiana Pashkuda Anna Mіshchenko |
| author_facet | Kateryna Bagatska Hanna Blakyta Oksana Melnychuk Tetiana Pashkuda Anna Mіshchenko |
| author_sort | Kateryna Bagatska |
| collection | DOAJ |
| description |
In recent years, many European studies have focused on municipal companies’ problems, particularly their efficiency in terms of public importance and quality of services provided and return on capital. These issues are directly related to the current series of topical issues of the expediency of public property and issues of reasonable choice between public property and privatization. In our opinion, one of the criteria for the expediency of a business entity being in public ownership is the efficiency of its activities, in particular financial efficiency. This paper aims to clarify the local authority approach to determining the efficiency of municipal-owned enterprises in the capital of Ukraine.
In the research, the dynamic and distribution of budget funds between the municipal-owned enterprises of Kyiv were studied, and the dynamics of their return on assets were analyzed. In the course of the research financial statements data of the 128 municipal enterprises were collected and analyzed. It is established that the largest recipients of budget funds are municipal construction companies, while municipal public transport companies receive insufficient funding to cover their needs. The four-year distribution of return on assets was also studied, and its miserable level was stated. With the hypothesis testing regarding the impact of budget financing on the municipal-owned enterprises' efficiency, it is established that the availability and level of budget financing of investments and the presence of budget funds in the revenues of municipal-owned enterprises do not have a significant impact on their profitability.
|
| first_indexed | 2024-03-12T03:58:49Z |
| format | Article |
| id | doaj.art-8b428eee7cd14b8e878e9e354261a97d |
| institution | Directory Open Access Journal |
| issn | 2306-4994 2310-8770 |
| language | English |
| last_indexed | 2024-03-12T03:58:49Z |
| publishDate | 2023-06-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj.art-8b428eee7cd14b8e878e9e354261a97d2023-09-03T11:45:56ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702023-06-0135010.55643/fcaptp.3.50.2023.4060THE IMPACT OF BUDGET FINANCING ON THE MUNICIPAL-OWNED ENTERPRISES PERFORMANCE: CASE OF KYIV CITYKateryna Bagatska 0Hanna Blakyta 1Oksana Melnychuk 2Tetiana Pashkuda 3Anna Mіshchenko4Candidate of Economy Sciences, Associate Professor of the Department of Economics and Business Finance, State University of Trade and Economics, Kyiv, UkraineD.Sc. in Economics, Professor of the Department of Economics and Business Finance, State University of Trade and Economics, Kyiv, UkraineCandidate of Economy Sciences, Associate Professor of the Department of Accounting and Taxing, Kharkiv National University of Internal Affairs, Kharkiv, UkraineCandidate of Economy Sciences, Associate Professor of the Department of Economics and Business Finance, State University of Trade and Economics, Kyiv, UkraineCandidate of Economy Sciences, Associate Professor of the Department of Digital Economy and System Analysis, State University of Trade and Economics, Kyiv, Ukraine In recent years, many European studies have focused on municipal companies’ problems, particularly their efficiency in terms of public importance and quality of services provided and return on capital. These issues are directly related to the current series of topical issues of the expediency of public property and issues of reasonable choice between public property and privatization. In our opinion, one of the criteria for the expediency of a business entity being in public ownership is the efficiency of its activities, in particular financial efficiency. This paper aims to clarify the local authority approach to determining the efficiency of municipal-owned enterprises in the capital of Ukraine. In the research, the dynamic and distribution of budget funds between the municipal-owned enterprises of Kyiv were studied, and the dynamics of their return on assets were analyzed. In the course of the research financial statements data of the 128 municipal enterprises were collected and analyzed. It is established that the largest recipients of budget funds are municipal construction companies, while municipal public transport companies receive insufficient funding to cover their needs. The four-year distribution of return on assets was also studied, and its miserable level was stated. With the hypothesis testing regarding the impact of budget financing on the municipal-owned enterprises' efficiency, it is established that the availability and level of budget financing of investments and the presence of budget funds in the revenues of municipal-owned enterprises do not have a significant impact on their profitability. https://fkd.net.ua/index.php/fkd/article/view/4060municipal-owned enterprisepublic companybudgetary fundingreturn on assetsenterprise capitalbusiness performance |
| spellingShingle | Kateryna Bagatska Hanna Blakyta Oksana Melnychuk Tetiana Pashkuda Anna Mіshchenko THE IMPACT OF BUDGET FINANCING ON THE MUNICIPAL-OWNED ENTERPRISES PERFORMANCE: CASE OF KYIV CITY Фінансово-кредитна діяльність: проблеми теорії та практики municipal-owned enterprise public company budgetary funding return on assets enterprise capital business performance |
| title | THE IMPACT OF BUDGET FINANCING ON THE MUNICIPAL-OWNED ENTERPRISES PERFORMANCE: CASE OF KYIV CITY |
| title_full | THE IMPACT OF BUDGET FINANCING ON THE MUNICIPAL-OWNED ENTERPRISES PERFORMANCE: CASE OF KYIV CITY |
| title_fullStr | THE IMPACT OF BUDGET FINANCING ON THE MUNICIPAL-OWNED ENTERPRISES PERFORMANCE: CASE OF KYIV CITY |
| title_full_unstemmed | THE IMPACT OF BUDGET FINANCING ON THE MUNICIPAL-OWNED ENTERPRISES PERFORMANCE: CASE OF KYIV CITY |
| title_short | THE IMPACT OF BUDGET FINANCING ON THE MUNICIPAL-OWNED ENTERPRISES PERFORMANCE: CASE OF KYIV CITY |
| title_sort | impact of budget financing on the municipal owned enterprises performance case of kyiv city |
| topic | municipal-owned enterprise public company budgetary funding return on assets enterprise capital business performance |
| url | https://fkd.net.ua/index.php/fkd/article/view/4060 |
| work_keys_str_mv | AT katerynabagatska theimpactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT hannablakyta theimpactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT oksanamelnychuk theimpactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT tetianapashkuda theimpactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT annamíshchenko theimpactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT katerynabagatska impactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT hannablakyta impactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT oksanamelnychuk impactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT tetianapashkuda impactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity AT annamíshchenko impactofbudgetfinancingonthemunicipalownedenterprisesperformancecaseofkyivcity |