Methods of Stress Testing of Financial Stability of Ukrainian Enterprises

Lukianenko Iryna G. ()
Additional contact information
Lukianenko Iryna G.: National University of Kyiv-Mohyla Academy

Business Inform, 2013, issue 11, 57_64

Abstract: The goal of the article lies in adaptation of the procedure of stress testing for assessment of financial stability of enterprises and development of adequate economic and mathematical instruments for its conduct. It was revealed during the study that the proposed approach allows not only obtaining a forecast assessment of financial stability in future periods of enterprise activity but also all-sided study and quantitative assessment of its reaction on action of internal and external stresses in short-term and long-term prospects. This article proves that main stages of the conduct of a stress test at the enterprise level are analysis of external environment and identification of potential markets; identification of indicators that meet the detected risks and stresses; development and specification of the economic and mathematical model, that is used for running scenarios, which should be oriented at unfavourable but quite probable events. The conducted studies confirmed prospectiveness of the use of longitudinal data models and vector auto-regression models, including error correction models when conducting stress testing at the level of the branch and an individual enterprise. The obtained results could be used as a basis for further development and improvement of the method of stress testing of financial stability of economic subjects and also for identification of the model of stress testing of individual branches of the Ukrainian economy.

Keywords: financial stability; stress testing; enterprise; risks; stresses; scenarios; error correction models; longitudinal data models (search for similar items in EconPapers)
Date: 2013
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.business-inform.net/pdf/2013/11_0/57_64.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idp:bizinf:y:2013:i:11:p:57_64

Access Statistics for this article

Business Inform is currently edited by Ponomarenko Vladimir S.

More articles in Business Inform from RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics
Bibliographic data for series maintained by Khaustova Viktoriia ().