SOCIAL AND ECONOMIC CONSEQUENCES OF BANKRUPCY OF THE COMPANIES IN UKRAINE

Olga Grybinenko
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Olga Grybinenko: Enterprise State Institution of Higher Education “National Mining University”

EUREKA: Social and Humanities, 2017, issue 2, 3-10

Abstract:

As a result of the research it was determined that, the main causes of bankruptcy in the current economic conditions is a violation of financial stability; decline in business activity; significant debt; low liquidity assets, etc.; socio-economic consequences of bankruptcy is the fall in GDP, the decline in industrial and other products; reducing the supply of goods and services in the market; decline in innovation and capital investment; a negative multiplier effect and others; the main types of bankruptcy inherent in national enterprises - a fictitious bankruptcy; deliberate bankruptcy; technical failure; real bankruptcy. In recent years, fictitious bankruptcy is most typical for production assets of corporations that serves as cost centers; actual bankruptcy - in small and medium business; it had been found, that the overall socio-economic consequences of bankruptcy in Ukraine are negative; it has been found that, the nature of the relationship between bankruptcy and indicators of socio-economic development is fairly close, which suggests that domestic enterprises are essential curative measures, measures of financial rehabilitation of enterprises; simplification of the tax regime for small and medium businesses. The model of communication process of bankruptcy and socio-economic indicators of Ukraine demonstrated a significant correlation between the present bankruptcy and tax revenues to the state budget. The impact of bankruptcy on the overall economic development of the country is a scientific and reasonable, which makes recommendations for further research. I have proved the important meaning of bankruptcy in the treatment of various scientists. There were presented internal and external causes of bankruptcy and its types. The next things were developed: the clarification of the external and internal in relation to the subject of business factors affecting its activities; the order of the enterprise is declared bankrupt; the main socio-economic consequences of the bankruptcy of enterprises in Ukraine. The research results can be used in the planning of government measures to prevent the bankruptcy of enterprises and developing strategies to improve the socio-economic development. In future we plan to continue the study and to determine the nature of the model applied to the process of bankruptcy and socio-economic indicators of Ukraine.

Keywords: bankruptcy; bankrupt businesses; the consequences of bankruptcy; indicators of social and economic development (search for similar items in EconPapers)
Date: 2017-03-31
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