THEORETICAL FOUNDATIONS, ECONOMIC ESSENCE, AND CORE PRINCIPLES OF CORPORATE FINANCE IN THE AGRICULTURAL SECTOR

Abstract

This scientific article presents an in-depth analysis of the theoretical foundations, economic essence, and key management principles of corporate finance in the agricultural sector. The study examines major financial challenges faced by agricultural enterprises — including disproportionate capital structures, seasonal financial flows, limitations in risk management, and low investment activity — through the lens of corporate finance approaches. Classical theories by Modigliani and Miller, contemporary profitability models, and leverage indicators are evaluated and adapted to agricultural conditions. The current state of corporate finance in Uzbekistan’s agricultural sector is also assessed in comparison with international practices based on data from FAO, the World Bank, and the OECD. This comparison reveals several institutional and methodological shortcomings. Empirical findings demonstrate that inefficiencies in financial management among agricultural enterprises intensify investment risks and liquidity problems. The article concludes with comprehensive recommendations, such as enhancing financial literacy among agricultural actors, introducing digital financial analysis systems, and strengthening public-private partnership-based financing mechanisms. This research contributes to the development of both theoretical and practical foundations aimed at ensuring financial sustainability in the agricultural sector.