Chut M. A mechanism for value-based financial management in industrial enterprises

Chut М.А. A mechanism for value-based financial management in industrial enterprises. – A qualifying scientific paper in manuscript form. Dissertation for the degree of Candidate of Economic Sciences in the specialisation 08.00.08 – Money, Finance and Credit. – Chernihiv Polytechnic National University, Ministry of Education and Science of Ukraine, Chernihiv, 2026. This dissertation is devoted to the further development of theoretical and methodological principles and the formulation of practical recommendations for improving the value-based financial management mechanism in industrial enterprises. The dissertation focuses on refining the conceptual and categorical framework of financial science with regard to clarifying the essence of the category “value-oriented management”, which is achieved through an examination of the economic meaning of such definitions as “value”, “worth” and “management”. An analysis of these has made it possible to identify various approaches for defining the content of this category, namely: process-based, systems-based, functional, strategic, resource-based and adaptive. It is proposed that value-based management be regarded as an adaptive system for the strategic and operational management of financial resources, cash flows and investment processes, the functioning of which is aimed at ensuring the long-term growth in the value of the enterprise, enhancing its financial stability, investment attractiveness and competitiveness, whilst taking into account the challenges posed by the external environment. The analysis of the characteristics of the economic activities of industrial enterprises has made it possible to define the concept of “value-oriented financial management of industrial enterprises”. This, in turn, made it possible to use a systematic approach to define the nature and components of the aforementioned adaptive model and to establish the specific conditions for applying such a management mechanism. This paper examines the range of tools used in value-based financial management of industrial enterprises and identifies the following categories: financial; management and analytical; planning and budgeting; financial controlling; risk management; and forensic analysis. This made it possible to identify the role of value-based budgeting within the financial management system of industrial enterprises. The paper describes the specific features of using this tool and its components, and sets out an application algorithm that takes into account the economic characteristics of industrial enterprises. In the dissertation, the current state of economic development of industrial enterprises in Ukraine is examined and an analysis of the results of their financial performance is carried out, which has made it possible to identify trends in their operations. The analysis also identified the current obstacles to the financial operations of industrial enterprises, which are hindering their active development and reducing their investment appeal. The role and place of the value-based management mechanism in the functioning of an industrial enterprise’s financial management system are substantiated. The focus is on investigating the nature and structure of this mechanism. In particular, it is proposed that this mechanism be viewed as a system of interrelated methods, tools, levers and individual components that are applied in the management decision-making process with the aim of ensuring the long-term growth in value of an industrial enterprise by improving the efficiency of financial resource utilisation in the face of an uncertain external economic environment. Given the instability of the external environment in which industrial enterprises currently operate, it is proposed that the set of core principles underpinning the value-oriented financial management mechanism for industrial enterprises be expanded to include the following new principles: digital adaptability, digital controlling, predictability, financial resilience and cyber resilience. In addition, the tools of the value-based financial management mechanism for industrial enterprises have been analysed, and the nature and types of forensic tools have been specified. Building on the mechanism of value-based management of industrial enterprises, the author has developed a functional diagram of a value-based financial management system for industrial enterprises. In addition, this paper outlines the key areas of effectiveness in the operation of a value-based financial management mechanism for industrial enterprises, with a view to ensuring their long-term and efficient operation. Keywords: industrial enterprise, value-based management, system, financial management, financial risks, corporate finance, forensic accounting, budgeting.