Semenenko T. Diagnosis of TNC activity in the terms of financial instability

The thesis is devoted to a comprehensive study of methods and techniques for diagnosing the TNCs’ activities under growing financial instability. The paper describes the theoretical and methodological foundations for diagnosing TNCs’ business activities. The competitive disposition of transnational corporate structures in the global economy is assessed, the essential nature of global financial instability and its factors as well as the role and tasks of diagnosing TNC activities in ensuring their competitiveness are identified. Considerable attention is paid to the analysis of modern methods of diagnostics of the TNCs’ activities in terms of their adequacy to global conditions. A comprehensive assessment of the analytical methods’ (coefficient analysis and non-formalized methods both) effectiveness used in foreign practice of diagnostics for predicting of TNCs’ bankruptcy is given. On this basis, the dominance of traditional indicators and indicators of financial and economic activity (liquidity, capital adequacy, profitability, etc.) in modern corporate monitoring systems, mainly without analyzing the impact of global financial instability on its structural dynamics, has been established. The key directions of improving the methods of corporate structures’ diagnostics based on the introduction such indicators as the indexation coefficient, the index of monetary value added, indicators of the duration of the financial cycle and its individual components, the monetary assessment of the cash gap, free cash flow to the invested and own capital, are proposed.