Possibilities For Managing Financial Crises Of Macedonian Companies

Abstract

Frequent economic crisis, led a large number of companies to cumulate losses. On these conditions are not immune Macedonian companies, also. Such businesses, if not undertake adequate measures, over time, become indebted and lose solvency, or are facing a serious problem - financial crises. Considering that the recovery from financial crisis is very difficult process, it is especially important companies to undertake certain actions that would prevent the occurrence and escalation of the crisis.

In that context, main objectives of this paper is to identify the main causes of financial crisis of companies, briefly to present current methods of managing financial crisis as strategies whose implementation will prevent the liquidation of companies and to explore the level of implementation of financial restructuring, merger and acquisition and turnaround concept in companies of Republic of Macedonia. For that purpose, different qualitative and quantitative methods are implemented. For collecting primary data from companies in the Republic of Macedonia, constructed questionnaire is used. The analysis will lead to achievement of main goal of the paper and will contribute to identify the frequently used opportunities for managing and overcoming financial crisis of companies in the Republic of Macedonia.

Findings will direct to the following: there is no unified way for managing financial crisis, that could be applied in any company and that common in application of current ways to overcome the financial crisis (turnaround concept, financial restructuring, merger and acquisition of companies) is that their adequate implementation contributes to improving efficiency and effectiveness in managing the financial crisis and subsequently have positive implications company performances.

Keywords

• Financial crises,companies,financial restructuring,merger and acquisition,turnaround concept

References

1. Block S., Hirt G, (2008), Osnove finansiskog menadzmenta, McGraw-Hill Irvin.
2. Velimirovic M.,(2003), Sadržaj i dejstvo stečajnog plana, Pravni život N. 11.
3. Janikijevic N. (2003), Organizacione promene u razvoj, Beograd.
4. Kokotec – Novak Majda, (1997)Racunovodski vidik sanacije podvjeta, Zbornik referatov 29 simpozija, osodobnih, metodah v racunovodstvu in poslovnih financah, Portoroz: Zveza ekonomistov Slovenije in zveza racunovodi, financnikov in revizorjev Slovenije.
5. Mićović M., (2004), Reorganizacija ili redresman stečajnog dužnika, Pravo i privreda, Volume: 5-8, Beograd.
6. Miroslav M. Todorovik, (2005), Finansijsko restrukturiranje korporacija, Ekonomski fakultet, Beograd,
7. O’Neill, H. M., (1986), Turnaround and recovery: What strategy do you need?, Long Rang Creditor Rights in Insolvency Procedure”, Sydney, November 1999,
8. www.oecd.org

9. Pajunen K., (2005), Stakeholder Influences in Organizational Survival, Journal of Managment Studies.
10. Pittaluga Rodolfo Jr., (2000), U.S. Bankruptcy/Insolvency laws and foreign bankruptcy proceedings.
11. Richard A.,Stjuard C., Frenklin A., (2011), Principi na korporativnite finansii, Ars Lamina, Skopje.
12. Stieve M, Karoline G., (2012), Pretpriemastvo i upravuvanje so mali biznisi, Ars Lamina, Skopje.
13. Smith, M. i C. Graves, (2005), Corporate turnaround and financial distress, vol. 20 (3), Managerial Auditing Journal.
14. Stuart C. Gilson, (2006), Creating value through corporate restructuring, John Wiley & Sons, Boston.
15. UNCITRAL, (2004), Legislative Guide on Insolvency Law (June), www.uncitral.org.
16. Freshfields Bruckhaus Deringer, (2004), The EU regulation on insolvency proceedings (June),www.freshfields.com.
17. European Bank for Reconstruction and Development, (2006), Transition Report.
18. http://www.coba.usf.edu/departments/management/
19. http://www.byrneassociates.co.uk/adrec.html
20. http://www.crm.com.mk
21. www.pravoeu.jura.kg.ac.yu
22. www.oecd.org
23. www.economics.ag.utc
24. www.wordlbank.org
25. www.uncitral.org
26. www.economy.gov.mk