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Finance and Credit

Modern features and tools to analyze the insolvency (bankruptcy) of organizations

Vol. 30, Iss. 4, APRIL 2024

Received: 21 September 2020

Received in revised form: 5 October 2020

Accepted: 20 October 2020

Available online: 26 April 2024

Subject Heading: BUSINESS VALUE

JEL Classification: C38, C53, G32, G33

Pages: 926962


Irina V. ZENKINA Financial University under Government of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Subject. The article considers the definition of specific methodological aspects, systematization of methodological approaches and substantiation of tools for the analysis of insolvency (bankruptcy) of economic entities, which enable to timely diagnose negative changes in organizations financial condition, take measures to prevent unfavorable developments in the situation, and optimize the management impact on business stability.
Objectives. The purpose is to determine methodological tools relevant to the analysis and forecast of organizations insolvency (bankruptcy) to ensure their high quality, clarification of financial and non-financial indicators for deeper analysis, and objective conclusions regarding the financial prospects.
Methods. The paper employs analysis and synthesis, detailing and generalization, comparison, abstraction, analogy, economic and mathematical modeling, systems and strategic approaches.
Results. The paper shows signs and types of bankruptcy of economic entities, systematizes external and internal factors of organizations bankruptcy, includes the results of statistical analysis of economic entities bankruptcy in the Russian Federation, defines the methodological features of the analysis of insolvent organizations and its information base, generalizes methodological approaches and tools for analyzing the insolvency (bankruptcy), offers and underpins financial and non-financial indicators that are valuable for using in the framework of in-depth analysis and assessment of the likelihood of insolvency (bankruptcy).
Conclusions. The proposals aim at increasing the validity of the organizations assessment in terms of its compliance with the going concern principle, ensuring the adequate economic, legal and financial characteristics of the business, and formulating objective conclusions on possible bankruptcy and risks for stakeholders.

Keywords: type of bankruptcy, bankruptcy factors, bankruptcy statistics, insolvency (bankruptcy) analysis tools


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