Improving The Assessment Of Enterprises Financial Security In Basic Sectors Of Economy

Abstract

Many models for assessing the level of financial security are based on a study of a small number of public industrial enterprises in a particular industry, while the vast majority of financial risks are generated by small and medium-sized enterprises, for which these models are inapplicable. This study aims to present a new model for assessing the level of financial security, differentiated by industry and applicable not only for large companies but also for assessing small and medium-sized businesses. To improve the efficiency of the model, an array of accounting data was collected from 13,324 companies belonging to sectors of the economy that generate most of the added value: construction, manufacturing, mining, trade. The main research methods include cluster analysis method, discriminant analysis method, correlation and regression analysis method, factor analysis, economic modelling. The result of the study is the creation of a new six-factor model for assessing the level of financial security of companies, differentiated by industry. To improve the performance of the model, the most relevant coefficients were selected to explain the nature of the company's financial condition problems. Also, for diagnosing financial health, recommended values of the main financial indicators were developed, taking into account the scope of companies.

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Publication Date

03 June 2022

eBook ISBN

978-1-80296-125-6

Publisher

European Publisher

Volume

126

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-

Edition Number

1st Edition

Pages

1-1145

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Volna, Y. S., & Savchenko, N. L. (2022). Improving The Assessment Of Enterprises Financial Security In Basic Sectors Of Economy. In & N. G. Bogachenko (Ed.), AmurCon 2021: International Scientific Conference, vol 126. European Proceedings of Social and Behavioural Sciences (pp. 1041-1049). European Publisher. https://doi.org/10.15405/epsbs.2022.06.115