Essence and methods of evaluation of the possibility of the company's bankruptcy statement
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 9, Issue
Abstract
The economic and political situation in the country, as well as the consequences of the global financial and credit crisis, led to the financial situation of a significant part of the enterprises deteriorating, and some of them went bankrupt. That is why to improve its financial position and avoid such a situation in the future it is necessary to investigate the probability of bankruptcy for the enterprise. The current volatility of the external environment of organizations, its rapid development in connection with unceasing scientific and technological progress, changes in the areas of partnership, globalization, economic instability contribute to the preconditions for the crisis for most enterprises. The article is devoted to determining the essence of bankruptcy and methods for assessing the probability of bankruptcy of economic entities. The article substantiates the necessity of forecasting (conducting analysis of probability of occurrence) of bankruptcy of enterprises in the present conditions and the necessity of introduction of crisis management at enterprises. It is the process of emerging crises in the enterprise and the associated difficulties that predetermine the development of an enterprise crisis management system and the formation of an effective system of anti-crisis measures. In foreign countries, the most common models of assessing the financial position of a company and its predisposition to bankruptcy are the following econometric models: a two-factor model for assessing the probability of bankruptcy, an assessment of the probability of bankruptcy on the basis of the Altman Z-account, the Conan and Golder models, the Springayate model, etc. Also, in the article the calculations of the probability of bankruptcy proceeding according to the model A.V. Matviychuk, which is most typical for Ukrainian enterprises and allows to reveal the crisis conditions of development, on a concrete example the enterprise for the production of pumps, compressors and hydraulic systems in Kharkiv is the Limited Liability Company «Scientific-Production Company «UKR-LAND».
Authors and Affiliations
Iryna Oleksandrivna Pienska, Karina Andriivna Pokrovska
Keywords
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