Normative Values of Financial Stability Ratios: Industry-Specific Features
https://doi.org/10.26794/2304-022X-2017-7-2-44-55
Abstract
The purpose of this study is to predict the Russian companies’ bankruptcy probability based on existing legislation. The empirical base of the study consists of the collection of financial statements of 2017 enterprises (866 of them gone bankrupt) belonging to four economic sectors: wholesale trade, construction, power generation, food production. In the course of investigation the authors have examined the consistency of current normative values of financial ratios approved by the regulatory acts of the Russian Federation, as well as proposed their redefined data based on economic and mathematic modeling. The worked out norms of financial stability allow classifying companies with sufficient accuracy as bankrupts and financially healthy companies (from 75% to 85%). The given norms have been calculated for two groups of insolvent companies: 1) formally declared bankrupts; 2) officially declared bankrupts and the companies, which are the stage of the arbitration proceedings according to creditors’ claims. The obtained results can be applied in enterprises’ crisis management decision-making.
About the Authors
E. A. Fedorova
Financial University
Russian Federation
Doctor of Economics, Professor, Department of Corporate Finance and Corporate Governance
Russian Federation
Doctor of Economics, Professor, Department of Corporate Finance and Corporate Governance
M. A. Chukhlantseva
National Research University Higher School of Economics
Russian Federation
student
Russian Federation
student
D. V. Chekrizov
“Globalstar-Space Telecommunications” Joint Stock Company
Russian Federation
Senior financial analyst
Russian Federation
Senior financial analyst
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Review
For citations:
Fedorova E.A., Chukhlantseva M.A., Chekrizov D.V. Normative Values of Financial Stability Ratios: Industry-Specific Features. Management Sciences. 2017;7(2):44-55. (In Russ.) https://doi.org/10.26794/2304-022X-2017-7-2-44-55
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