Strategy of financial management in the construction sector under current conditions (sanctions, political and economic instability)

this article examines optimal financing strategies within construction organizations in the context of economic instability and sanctions. The aim of the research is to develop and analyze optimal financial management strategies for construction organizations, aimed at ensuring their sustainable development in the current economic conditions. Methods. The research employed comparative analysis methods of various approaches to formulating financial strategies, assessed the ratio of equity to borrowed funds, analyzed the weighted average cost of capital, and utilized a targeted approach to selecting financing strategies. Results. The study identified two main strategic approaches: maximizing profitability through the use of borrowed funds and minimizing risks while maintaining financial stability. A targeted approach to selecting the optimal financing strategy was developed, key components of a detailed financial plan were identified, and the main factors influencing the financial stability of construction organizations under sanctions were established. Conclusions. The conclusion is drawn that under the pressure of sanctions and economic instability, the optimal capital structure for construction organizations requires a careful balance between the use of borrowed funds and maintaining financial stability. Furthermore, it is essential to develop comprehensive measures for diversifying funding sources and minimizing financial risks while maintaining an acceptable level of profitability.

optimal capital structure, weighted average cost of capital, financial risk, financing strategy, financial stability, borrowed funds, return on equity, construction organizations, financial plan