The impact of costs on the financial sustainability and efficiency of forestry enterprises

Stanislav Vasylishyn, Nataliya Kantsedal, Olha Leha, Svitlana Tiutiunnyk and Yurii Tiutiunnyk

Agricultural and Resource Economics: International Scientific E-Journal, 2026, vol. 12, issue 1

Abstract: Purpose. The aim is to assess the impact of expenditures on the financial sustainability and efficiency of forestry enterprises and to develop scientifically based proposals that increase the transparency and reliability of cost accounting, as costs represent the substantial foundation of both tangible and intangible asset valuation in the context of sustainable forest resource management. Methodology. The methodological basis includes systemic, structural-functional, and statistical approaches to assessing financial and environmental sustainability. The research involves a quantitative analysis of economic indicators, trends, and the structure of expenditures of forestry enterprises. It also generalises the key factors influencing business performance under external challenges, particularly in the context of wartime conditions. Results. The study revealed an increasing impact of material expenditures on the performance indicators of forestry enterprises. Three key areas of insufficient informational support were identified: assessment of cost sustainability, opportunities for diversification, and the need for revised reporting formats. The authors propose the inclusion of a dedicated section in reporting documents that addresses the effects of military actions on economic activity. The necessity of synchronising managerial and statistical reporting with multi-level information systems is substantiated, in order to implement environmental initiatives and align with the national green taxonomy framework. Originality. For the first time: 1) the economic, environmental, and socio-organisational factors that undermine the sustainability of forestry enterprises during wartime have been systematised; 2) the feasibility of introducing a separate informational section in statistical reports specifically dedicated to war-related expenditures and losses has been substantiated. Improved: the theoretical and methodological approaches to the formation of financial, statistical, and managerial reporting of forestry sector enterprises, taking into account the requirements of sustainable development and the need to synchronise ecological, economic, and social management factors. Further developed: the study of the impact of expenditures on the financial sustainability and efficiency of the forestry sector, with a focus on the mechanisms through which cost structures influence profitability, investment capacity, and sustainable development outcomes. Practical implications. Reflected in the enhancement of management and accounting tools in the forestry sector. It is proposed to add a new section to the state statistical reporting form of Ukraine (Form 4-LG), which details war-related expenditures and losses. The results are of direct importance to government bodies, to forestry enterprises and to investors and international partners, who gain a more realistic assessment of the investment potential of the sector when economic, environmental, and social risks are considered. These improvements enable more accurate assessments of external threats, support the development of investment-attractive “green” projects, and strengthen enterprises’ environmental and financial accountability. The proposed approaches may also serve as a basis for developing indicators to monitor the effectiveness of sustainability policies in natural resource management.

Keywords: Agricultural Finance; Environmental Economics and Policy; Sustainability (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:areint:401366

DOI: 10.22004/ag.econ.401366

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