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Financial Analytics: Science and Experience
 

Evaluating the effectiveness of companies' financial policies using logistic regression: A case study of electric power companies

Vol. 14, Iss. 2, JUNE 2021

Received: 11 February 2021

Received in revised form: 22 February 2021

Accepted: 8 March 2021

Available online: 28 May 2021

Subject Heading: MONITORING OF ECONOMIC PROCESSES

JEL Classification: G3, G17, G32, M21

Pages: 208–217

https://doi.org/10.24891/fa.14.2.208

Kirill E. PIVNYK Plekhanov Russian University of Economics (PRUE), Moscow, Russian Federation
kirillpivnyk@gmail.com

ORCID id: not available

Subject. This article assesses the effectiveness of companies' financial policies using logistic regression. It considers the financial policy assessment as a comprehensive analysis that helps evaluate the company's financial performance and make a conclusion based on a single criterion.
Objectives. The article aims to develop a single (universal) criterion helping conclude of the company's financial policy effectiveness.
Methods. For the study, I used a comprehensive approach based on the developed logit model, financial analysis, systems approach, and an overview of literature sources on the subject.
Results. The article presents a developed methodology for evaluating the effectiveness of financial policy determined by the effectiveness of financial policy (EFP) equation for Russian electric power companies.
Relevance. The results obtained can be used in practice to evaluate the financial policy by company external and internal users.

Keywords: company, financial policy, logistic regression, performance assessment, analysis

References:

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ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

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