Analysis and Control of Bankruptcy and Reorganization Processes: Case Studies Using Accounting Data

George Abuselidze and Anna Slobodianyk

EconStor Open Access Articles and Book Chapters, 2020, vol. 164

Abstract: The article is devoted to the justification and development of recommendations for improving the use of accounting data for the analysis and control of bankruptcy and reorganization processes of enterprises. It is determined that in conditions of financial and political instability, the activities of enterprises are accompanied by crisis situations, which may result in insolvency or bankruptcy. The peculiarities of processes of bankruptcy and reorganization of enterprises, using the methods of economic analysis, analysis of financial state and efficiency of the investigated company, as well as evaluated the effectiveness of the use of accounting data for analysis and control of processes of bankruptcy and reorganization of enterprises. Overview of cases in business practice for which the company is liquidated. The state and volume of activity of the basic enterprise in the context of the main indicators of financial statements for the last three years are analyzed. As a result of the analysis of the enterprise, it is proved that LLC Agrocomplex is profitable, with positive growth trends for most of the main indicators of economic activity. To identify signs of a crisis, the company assessed the threat of bankruptcy based on rapid diagnostics. The authors proved that the twofactor model for assessing the probability of bankruptcy of an enterprise shows that the probability of bankruptcy for LLC Agrocomplex is very low. The authors prove that when analysing the financial condition of an enterprise, a situation may arise when some indicators of the discriminant model for a particular enterprise may be very low compared to their "normal" values, and others - on the contrary, too high, which is also "bad". It is proved that their combination can indicate a stable financial condition of the enterprise, since it is the calculation of one integral indicator based on all input factors at the same time.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/231521/1/e3sconf_tpacee2020_09036.pdf (application/pdf)

Related works:
Working Paper: Analysis and Control of Bankruptcy and Reorganization Processes: Case Studies Using Accounting Data (2020)
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:zbw:espost:231521

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().