Factors negatively affecting the improvement of the financial condition of real sector enterprises with state participation, ways to eliminate them, and mechanisms for the efficient use of financial resources

Abstract

This article examines the factors negatively affecting the financial condition of state-owned enterprises in the real sector, measures to eliminate these factors, and mechanisms for efficient use of financial resources. The purpose of the study is to develop scientific and practical recommendations aimed at strengthening the financial sustainability of state-owned enterprises, improving the efficiency of financial resource utilization, and enhancing state support mechanisms based on market principles. The research applies systemic, comparative and institutional analysis, financial ratio analysis and cause-and-effect analysis. The results demonstrate that soft budget constraints, institutional weaknesses in corporate governance, high debt burdens, depreciation of fixed assets, inefficient allocation of investment resources, and the combination of commercial and social functions negatively affect the financial performance of state-owned enterprises.