FINANCIAL TRANSPARENCY, ACCOUNTING & ESG STANDARDS AS FACTORS IN SHAPING THE COMPETITIVE ADVANTAGE OF UKRAINE'S ECONOMY

Abstract

Relevance. This paper examines the impact of financial transparency and accounting standards on the formation of Ukraine’s competitive advantage in the context of global economic integration. The paper key international financial reporting standards – GAAP and IFRS, a comparative analysis of these standards, as well as the peculiarities of financial reporting in Ukraine. It also analyses the role of transparency in reducing information asymmetry, strengthening investor confidence and reducing the cost of capital. The study finds that the harmonisation of accounting standards and the implementation of transparency principles are prerequisites for the integration of the economy into the international market, increasing its investment attractiveness and strengthening its position in the global economy.

The purpose of this work is to substantiate the role of financial transparency and accounting standards in shaping Ukraine's competitiveness in the international market.

Methods. Dialectical method and systemic approach — to study the relationship between the quality of financial reporting and the international competitiveness of the state. Comparative analysis — used to compare GAAP and IFRS standards, as well as to assess the differences in the levels of institutional maturity and regulatory readiness for the implementation of ESG in Ukraine compared to EU countries. Synthesis and modeling method — to develop a strategic forecast for the transformation of enterprise management systems based on the implementation of digital traceability. Logical generalization methods — to substantiate the role of transparency in reducing information asymmetry and the cost of capital raised.

Results. The results of the study formed a strategic forecast for the transformation of management based on financial transparency, accounting and analytical systems and ESG standards. The implementation of ESG standards in Ukraine remains complex and uneven, therefore, the difficulties of implementing standards are analyzed, which are due to significant inter-country differences in the level of economic development, institutional capacity and regulatory maturity. The combination of market and state support instruments is a key prerequisite for accelerating ESG transformation and increasing the competitiveness of the national economy.

Practical Value of Study. The justification of the feasibility of transition to international standards is provided not only as a formal requirement, but as a tool for reducing the cost of capital and attracting strategic investments. A combined approach (market instruments + state support) is proposed to accelerate ESG transformation, which is critical for fulfilling the conditions of European integration and access to EU structural funds, and a digital traceability model is described, which allows agribusiness and the industrial sector to integrate into EU value chains, meeting the requirements of environmental and social monitoring.

Conclusions. Financial transparency, advanced accounting and analytical systems and the implementation of ESG standards form the strategic basis for the transformation of enterprise management. Investment attractiveness increasingly depends on the quality of reporting and the level of investor confidence. Digital traceability ensures integration into the EU single market, and the focus on sustainable, high-margin business models creates a long-term competitive advantage.