Rationale for the priority of a cyclic approach to asset management in a regional corporation

Abstract

Introduction. Classical methods of corporate asset management overlook the impact of external environmental uncertainty. Under the influence of macro- and mesofactors, corporations, especially at the regional level, that have not timely restructured their asset management system, inevitably face increasing financial threats and lose their market positions, which proves the relevance of the transition to a cyclical model of corporate asset management. The object of the study is the process of managing the assets of a small regional corporation, the subject is economic and financial relations in the formation and implementation of this strategy. Goal. The study develops and substantiates a cyclical model for managing corporate assets. Materials and methods. The methodology includes analysis (comparative, vertical, horizontal), synthesis, induction, deduction, method of financial ratios and. Results and discussion. The priority of the cyclical strategy of corporate asset management is substantiated according to the dynamism criterion, special fundamental principles of its formation are introduced, the implementation of which allows for a timely adaptation of the composition, structure of assets, and sources of their financing to changing macroeconomic conditions, ensuring financial stability and reducing vulnerability to external shocks. Conclusion. The inconsistency of traditional asset management models is proven. The importance of implementing the principle of financial flexibility for small regional corporations is highlighted: maintaining sufficient liquidity and diversifying funding sources reduces vulnerability to macroeconomic shocks. According to the authors, managing corporate assets across economic cycle phases is a holistic strategic financial management paradigm that requires a shift from a reactive, static approach to proactive, dynamic management of balance sheet composition and structure. The practical significance lies in reducing the likelihood of excessive asset growth by limiting unjustified expansion during the growth phase, ensuring the maintenance of equilibrium.