Abstract

The aim of this research is to investigate the scientific and methodic approach to the assessment of market value loss risk in response to the enterprise’s innovative transformations. The management system under conditions of innovative transformations in the economy, first of all, has to be concentrated on the management of an enterprise’s market value loss risk. The article proposes the scientific and methodic approach to the comprehensive assessment of the enterprise’s market value loss risk under the innovative transformations of the economy. It enables to take into account the integral influence of factors, which form the economic value added, ranked by the priority to monitor the value-oriented management of the enterprise’s innovative development. This approach is based on the multi-step algorithm, which forms the data array by the expert method, the normalization of indicators, the identification of the risk degree scoring through taxometric method, the prioritization of the factor features by Fishburn’s equation, generalized quantitative and qualitative assessment of the financial risk based on the minimax approach. Authors demonstrate the results of the market value loss risk assessment at the enterprises from the industrial complex of Ukraine during 2008-2017. Taking into account the obtained result, one can point out that, in general, the innovative activity of the industrial enterprises in Ukraine is described with an average level of the enterprise’s market value loss financial risk (the average complex assess of the enterprise’s market value loss financial risk is 0.39 of the unit fraction for the analyzed period). The reasonability and advantages of implementing the proposed scientific and methodic approach consist of the following actions: to identify the objective set of indicators, the dynamics of which proves the probability of enterprise’s market value loss risks in response to the innovative transformations in the economy and can be used to make weighted managerial decisions; to define the enterprise’s market value loss risk level in response to the innovative transformations in the economy both by the separate indicators and together; to define the significance of every indicator, based on mathematical calculations, in general, integral indicator through the weighted coefficient. It enables to select various factors of the innovative activity and innovations efficiency; universal nature and the possibility to use either for conclusions regarding enterprise’s market value loss risk level, based on the enterprises’ aggregated data or to obtain individual risk assessments of a separate enterprise in response to the innovative transformations in the economy.The stepwise nature of the risk dynamics, abrupt transitions from a low risk to the high one and vice versa during 2008-2017 points to the necessity to develop and to implement a set of measures to strengthen the control over the risk factors oriented to maintain the secure financial position and to create the industrial enterprises’ market value in response to the innovative transformations in the economy at the industrial enterprises of Ukraine.

Keywords: economic value added, management of innovations, the risk of the enterprises’ market value loss, risk assessment.

JEL Classification: С52, D04, D81, G32.

Cite as: Hrytsenko, L., Boiarko, I., Ryabenkov, O., & Didenko, O. (2019). Assessment of the value loss risk in response to the enterprise’s innovative transformations. Marketing and Management of Innovations, 1, 229-237. https://doi.org/10.21272/mmi.2019.1-19

This work is licensed under a Creative Commons Attribution 4.0 International License

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