Economic, Financial and Legal Assessment of Corporate Integration Association Activity

Abstract

The content of the integration process of joint stock companies (JSC) is considered. The prerequisites for rational and reasonable selection of potential participants in the corporate integration association (CIA) based on forecasting and evaluation of the results of such association’s activities are summarized. Established peculiarities of organization and management of corporate integration associations (difficulties in obtaining, analyzing and using the information necessary for management; individual management functions duplication; ambiguity of the certain activities effectiveness assessment; centrifugal trends within the CIA, risks associated with association management decentralization). The need for a two-level assessment of the corporate integration association activities (at the local level within individual JSCs, and on a corporate scale) to solve the tasks of the CIA strategic management has been proved. Complex analysis directions of corporate integration association activities efficiency are defined, which should consist of two blocks: general analysis of CIA activities efficiency; analysis of the synergistic effect that is formed within the CIA. The indicators system composition of corporate integration association assessment based on construction of the basic studies matrix is substantiated. It is proved expediency of sources differentiation of CIA synergy occurrence into four main categories: increase of income, reduction of expenses, tax deductions reduction and additional investments reduction, and on the basis of which, if necessary, factor analysis is carried out to identify the achievement degree of a certain strategy, integration goals and, if possible, reserves detection of synergetic effect increase. The analysis directions of the CIA activities are determined based on determining the integration degree of various activities within the CIA, such as: the production potentials integration of CIA participants; financial and production potentials integration of various joint stock companies – participants of the corporate integration association; scientific potentials integration of CIA participants. The indicators composition for assessing the depth of integration of the corporate integration association participants is substantiated. An approach to determining the synergy effect in the corporate integration association formation to constant changes in the economic environment is proposed.