Microeconomics

Analysis of current bankruptcy possibility methods’ assessment of machine building enterprises under administration of institutional investor

Authors: Bazhenov O. V., Sinyanskaya E. R., Kormachenko P. B.

Abstract

The key role in providing social stability at the territory of any municipality is played by support of unprofitable “symbol” enterprises which accumulate unique labor resources and basic funds, and also secondary assets which promote comfortable existence of districts. This kind of enterprise in Yekaterinburg is JSC “Uralmashplant”. The goal of this investigation is a consideration of present methods of possible bankruptcy assessing of machine building enterprises under control of institutional investor and conclusion formation about adaptation possibility of methodical approaches to specificity of a considered object. Taking into account the features of institutional investor’s influence the object of investigation is characterized; the assessing of possible bankruptcy of JSC “Uralmashplant” is carried out on the base of five the most popular models; comparison of efficiency growth rates and activity productivity of JSC “Uralmashplant” with the average data the conclusion is made concerning adequate model of bankruptcy possibility assessing models; taking into account the specificity of this object the most adaptive model has been chosen. The investigation outcomes can be used by machine building enterprises administration for objective assessing of financial risk rates connected with stable business functioning, and also executive powers for defining ways of administrative and financial support of machine building branch due to high social significance of some enterprises and providing social stability of a territory.

Key Words

Machine building, bankruptcy possibility assessing, economic modeling, JSC “Uralmashplant”, reclassified balance, balance structure satisfactoriness, industrial production index