+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Digest Finance
 

A risk-oriented model to assess the probability of bankruptcy of strategic alliance member companies

Vol. 28, Iss. 1, MARCH 2023

PDF  Article PDF Version

Received: 5 February 2019

Received in revised form: 13 March 2019

Accepted: 5 April 2019

Available online: 30 March 2023

Subject Heading: RISK, ANALYSIS AND EVALUATION

JEL Classification: G32, G33, M42

Pages: 16–30

https://doi.org/10.24891/ea.18.7.1295

Nataliya A. KAZAKOVA Plekhanov Russian University of Economics (PRUE), Moscow, Russian Federation
axd_audit@mail.ru

ORCID id: not available

Subject. Globalization of economic processes is associated with increased competition and risks that may ultimately lead a business to bankruptcy. Strategic alliances are one of the forms of enhancing the resilience of businesses, however, there are no tools for diagnosing the bankruptcy risks of strategic alliance member companies.
Objectives. The aim is to develop an economic model for assessing the probability of bankruptcy to control risks of companies that are members of strategic alliances.
Methods. The methodology of the study rests on academic papers of foreign and Russian scientists, expert, mathematical and analytical methods, as well as the systems approach to diagnosing the probability of bankruptcy.
Results. I developed a risk-based economic model as a set of economic indicators, criteria and methods to assess the bankruptcy risk of companies being the members of strategic alliances. The offered model can be useful to conduct performance audits, reviews and audits of a group of companies, and to prepare corporate reports in the sphere of sustainable development.
Conclusions. The presented approach enables to consider the specifics of risks of strategic alliance member companies through the mechanism of building a flexible system of indicators, their ranking and assigning weight values that reflect the contribution of a given factor. It also helps generate an objective and reasonable indicator of risk tolerance.

Keywords: risk, analysis, model, bankruptcy, strategic alliance

References:

  1. Burch C. Risk Appetit: Ne otkusyvaite bol'she, chem mozhete proglotit' [Risk Appetite: Do Not Bite Off More Than You Can Chew]. URL: Link (In Russ.)
  2. Ansoff I. Novaya korporativnaya strategiya [The New Corporate Strategy]. St. Petersburg, Piter Kom Publ., 1999, 416 p.
  3. Hamel G., Prahalad C.K. Do You Really Have a Global Strategy? Harvard Business Review, 1985, vol. 63, no. 4, pp. 139–148. URL: Link
  4. Cetindamar D., Kilitcioglu H. Measuring the Competitiveness of a Firm for an Award System. Competitiveness Review, 2013, vol. 23, iss. 1, pp. 7–22. URL: Link
  5. Damodaran A. Strategicheskii risk-menedzhment: printsipy i metodiki [Strategic Risk Taking: A Framework for Risk Management]. Moscow, Vil'yams Publ., 2017, 496 p.
  6. Lyubushin N.P., Babicheva N.E., Kozlova L.V. [Accounting for risk factors in the analysis of the borrower's creditworthiness]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2011, no. 10, pp. 2–7. URL: Link (In Russ.)
  7. Kogdenko V.G. [Investigating company risks within the framework of the stakeholder approach to analysis]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2018, vol. 17, iss. 6, pp. 1051–1072. (In Russ.) URL: Link
  8. Altman E.I., Hotchkiss E. Corporate Financial Distress and Bankruptcy: Predict and Avoid Bankruptcy, Analyze and Invest in Distressed Debt. John Wiley & Sons, 2005, 368 p.
  9. Horngren C.T., Harrison W.T. Jr., Oliver M.S. Financial and Managerial Accounting. Pearson Prentice Hall, 2009.
  10. Beneish M.D. The Detection of Earnings Manipulation. Financial Analysts Journal, 1999, vol. 55, iss. 5, pp. 24–36. URL: Link
  11. Echterling F., Eierle B., Ketterer S. A review of the literature on methods of computing the implied cost of capital. International Review of Financial Analysis, 2015, vol. 42, pp. 235–252. URL: Link
  12. Messier W.F. Jr., Glover S.M., Prawitt D.F. Auditing & Assurance Services: A Systematic Approach. McGraw-Hill Education, 2016, 816 p.
  13. Iyer N.K., Samociuk M. Fraud and Corruption: Prevention and Detection. Routledge, 2006, 312 p.
  14. Kazakova N., Bolvachev A., Gendon A., Golubeva G. Monitoring Economic Security in the Region Based on Indicators of Sustainable Development. Studies on Russian Economic Development, 2016, vol. 27, iss. 6, pp. 638–648. URL: Link
  15. Kazakova N.A., Ivanova E.A. [Monitoring, analysis and control of financial and economic activities of management companies]. Ekonomicheskii analiz: teoriya i praktika = Economic Analysis: Theory and Practice, 2016, no. 6, pp. 124–134. URL: Link (In Russ.)
  16. Bukreeva A.A. [Qualitative assessment of cost factors of steel companies (the Magnitogorsk Metallurgical Plant case)]. Fundamental'nye issledovaniya = Fundamental Research, 2008, no. 11, pp. 80–82. URL: Link (In Russ.)
  17. Fal'ko S.G., Glushko T.I. [Positioning business lines contract and divisions controlling in the organizational structure of electric grid company]. Innovatsii v menedzhmente = Innovations in Management, 2016, no. 7, pp. 12–19. (In Russ.)

View all articles of issue

 

ISSN 2311-9438 (Online)
ISSN 2073-8005 (Print)

Journal current issue

Vol. 28, Iss. 4
December 2023

Archive