Analysis of signs of economic insolvency of legal entities in the entrepreneurial environment

Igor Yu. Zagoruiko () and Zhanna V. Esterlein
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Igor Yu. Zagoruiko: Perm State National Research University, Postal: 9 Января
Zhanna V. Esterlein: Perm State National Research University

Economic Consultant, 2022, vol. 3, issue 3, 50-58

Abstract: Introduction. Analysis of signs of economic insolvency of legal entities is relevant and related to the need to detect financial problems at early stages, reduce risks, improve strategic management, and support the bankruptcy procedure of entrepreneurs. The article aims to analyze the signs of economic insolvency of legal entities in the entrepreneurial environment. Materials and methods. The materials used were articles from peer-reviewed periodicals and regulatory and legal documentation on bankruptcy and financial crises. Results of the study. Impossibility of an insolvent legal entity to continue its activity is manifested in the fact that it has no possibility of restoring solvency, and it cannot typically conduct financial and economic activity. Vital signs of legal insolvency (bankruptcy) are insolvency and non-payment. Conclusion. We consider development of more effective mechanisms for predicting bankruptcy to be a promising direction for further research. It is also essential to identify key financial and non-financial indicators, based on which it is possible to detect signs of possible bankruptcy in advance.

Keywords: bankruptcy; economic insolvency; entrepreneurship; financial problems (search for similar items in EconPapers)
JEL-codes: G33 L26 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ris:statec:0114

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