Signs Of Bankruptcy Research Articles

On the issue of improving the legislation regulating the bankruptcy procedure of legal entities

In the conditions of the observed economic turbulence caused, among other things, by coronavirus restrictions, there is an increase in cases of insolvency of economic entities. In addition, the legal landscape of bankruptcy of legal entities has undergone major changes. Confirmation of this provision is the fact that it is currently planned to introduce significant changes to federal legislation, the understanding of which actualizes the presented research topic. The object of the study is regulated by the norms of civil, arbitration procedural law, bankruptcy legislation, public relations that develop within the framework of the bankruptcy procedure of legal entities. The subject of the study is the theoretical and practical problems of the institute of insolvency (bankruptcy) of legal entities. The authors consider in detail such aspects of the topic as the problems faced by legal entities during the pandemic and their impact on the specifics of the bankruptcy procedure; doctrinal and legislative aspects of the etymological features of the categories "insolvency" and "bankruptcy", "signs of bankruptcy" and "criteria of bankruptcy"; issues related to the implementation of interim measures of the parties during the bankruptcy procedure, etc. Particular attention is paid to the analysis of the changes that the legislator plans to make to the law "On Insolvency (Bankruptcy)". The main conclusions of the study can be called the need for further elaboration by the lawmaker of the planned changes in bankruptcy legislation. The novelty of the results obtained is determined by the analysis of legislation and law enforcement practice in relation to the institution of bankruptcy in order to further develop recommendations on the application, interpretation and amendment of the relevant provisions of bankruptcy legislation.

Faktor-Faktor Yang Mempengaruhi Financial Distress Dengan Firm Size Sebagai Variabel Moderasi

The objective of this research is to examine the influence of liquidity, leverage, operating capacity and operating cash flow that being moderated by firm size to financial distress on the manufacturing companies listed on the IDX in 2017-2019. The sample was selected by using purposive method and there are 16 companies that were selected as samples. This research uses the moderated regression analysis (MRA) method to analyze data using the Eviews program version 11. The results show that liquidity, leverage and firm size have a positive and significant effect to financial distress. However, operating capacity and operating cash flow do not have a significant effect on financial distress. This study also shows that firm size weakens the effect of leverage on financial distress. However, liquidity, operating capacity and operating cash flow, which are moderated by the firm size, have no effect to financial distress. The implication of this study is to provide suggestions for companies in predicting financial distress conditions. The earlier the signs of bankruptcy are known, the better company management to immediately find solutions of the problems.

Банкротство как риск и инструмент превентивного реагирования в предпринимательской деятельности

The evolution of economic relations, changes in the regimes and conditions of doing business naturally contributed to the formation of the institution of bankruptcy, which has economic and legal characteristics and content. The institution of bankruptcy is a mechanism for regulating macroeconomic and market processes by the state, controlling the stability of financial and economic activities in the regions of the country, regardless of the level of risk and industry affiliation of business entities. Bankruptcy of an enterprise —is an economic state of insufficient liquid assets to cover urgent obligations (subjective bankruptcy), which can be fixed in court (objective bankruptcy). One of the reasons that lead any business structure to ruin is the mistakes of the management structure when making strategic decisions regarding the alternative development of the company. Thus, the main component of effective enterprise development and forecasting of potential risks is a rationally developed management strategy. The purpose of the study is to clarify the substantive and procedural aspects of bankruptcy as a complex intersectoral institution and to develop a model of preventive and anti-crisis management of the risk of bankruptcy of enterprises. The main research methods are historical-legal, content-analysis of normative-legal acts regulating the issues of insolvency, analysis of statistical data on the studied problem, modeling. The article considers various directions of scientific and theoretical interpretation of the concept and signs of bankruptcy. The effectiveness of regulatory and economic methods and institutions of bankruptcy regulation in Russia has been evaluated. The stages of development of the conceptual foundations of insolvency related to the formation of legislation are presented. The structure of bankruptcy as a complex intersectoral institution is presented, taking into account the substantive and procedural aspects. The scientific novelty of the research lies in the development of a model of preventive and anti-crisis management of the risk of bankruptcy of enterprises, the significance of which lies in the predictive determination of key risks, taking into account the strategy and tactics of entrepreneurial activity. Successful foresight of negative changes in the external and internal environment, development of scenarios of compensation of consequences are most important in the prevention of insolvency. The directions of future research are related to the formation of a strategic management system focused on the characteristics of small and medium-sized businesses and the development of parameters for predicting the risk of bankruptcy.

Fraud transactions revealing as phase of financial analysis in Forensic Economic Examination

The scientific research study is about financial methodology analysis improving in the framework of forensic economic examination. The objective bankruptcy date is one of the issues within the forensic examination. The authors propose to supplement the classical financial analysis with a special section, which analyzes transactions for compliance with market conditions, identifies schematic and fictitious transactions, and also determines the degree of their impact on the occurrence of property insufficiency and signs of bankruptcy. The author's classification of possible schematic transactions, as well as methods for establishing the fact of compliance with the market situation are proposed. As the criterion for the maximum permissible deviations of transaction values from market values, it is proposed to use a value in an amount not exceeding the change in values by more than two times. The technical assets identified as a result of fictitious transactions are proposed to be deducted from the market value of assets when calculating the net assets of the organization, which will allow the most correct determination of the objective bankruptcy date.

On the Issue of the Concept of Bankruptcy

The paper justifies the statement concerning the multiplicity of the concept of “bankruptcy”, and interpretes the relevant meanings. The author states that bankruptcy can be considered as: 1. an economic condition, failure to satisfy creditors’ claims, including the failure recognized by the court; 2. a procedure; 3. an objection on behalf of the debtor; 4. a basis for a special settlement regime with creditors and such a special settlement regime itself; 5. a type of enforcement proceedings; 6. a way of authorizing insolvency; 7. a model of administration; 8. a basis and order of liquidation of a legal entity. A preliminary agreement concerning the meaning of the term “bankruptcy” is necessary at all stages of the life of law: when a rule of law is created, applied and when it is being subjected to doctrinal debates aimed at identifying its meaning. Particular attention in the paper is paid to the concepts of insolvency and property insufficiency. The author argues that it is necessary to distinguish the signs of bankruptcy from insolvency, and the former from the grounds for initiating proceedings. In author’s opinion, the introduction of the category of insufficiency of property in 2009 as grounds for mandatory filing for bankruptcy by the debtor’s principal was a step backwards and does not meet the needs of the modern economy. To remedy the situation, the Supreme Court of the Russian Federation introduced the category of objective bankruptcy that is also ambiguous. The paper also focuses on bankruptcy as a special settlement regime with creditors based on the application of the principle of equality of creditors (pari passu). It is stated that this principle is the reason for the emergence, along with the executive proceedings, of a special regime, namely: bankruptcy.

СТРАТЕГИЯ ПРЕДОТВРАЩЕНИЯ БАНКРОТСТВА И ЕЕ МЕСТО В СИСТЕМЕ СТРАТЕГИЧЕСКОГО УПРАВЛЕНИЯ ПРЕДПРИЯТИЕМ

In the modern market economy, an assessment of the enterprise's financial condition is of great importance for the effective adaptation of the company to a turbulent market environment. This is due to the fact that organizations acquire independence and are fully responsible for the results of their activities to shareholders, suppliers, employees, creditors and banks. At the same time, in the phase of crisis phenomena in the economy, survival in a competitive environment is of particular importance for many enterprises, and therefore the issues of diagnosing the risk of bankruptcy of business entities are more relevant than ever. When identifying signs of bankruptcy, companies' management focuses on the development and implementation of such measures that would avoid it and build the enterprise to a new stage of development. In this regard, one of the most important components of bankruptcy prevention measures is the development of a bankruptcy prevention strategy (anti-crisis management strategy). To overcome the insolvency of ineffectively operating economic entities, at an early stage, the problem of developing an organizational and economic mechanism and measures that will strengthen the position of an enterprise in the market and help to postpone possible bankruptcy becomes dominant. The inclusion of bankruptcy in the mechanism of state regulation, which followed the formation of new economic relations in the Russian Federation, objectively required a rethinking of the previously accumulated theoretical and methodological developments and practical solutions. A bankruptcy prevention strategy is a set of prescribed measures for the long term to get an enterprise out of a crisis situation and prevent bankruptcy. It is such a development as a strategy for preventing bankruptcy that is an algorithm for all personnel of an enterprise to act during a crisis (bankruptcy).

ХАРАКТЕРИСТИКА ОРГАНИЗАЦИИ И ПРОЦЕССА ФОРМИРОВАНИЯ СТРАТЕГИИ ПО ПРЕДОТВРАЩЕНИЮ БАНКРОТСТВА НА ПРИМЕРЕ ОАО «РАДИОДЕТАЛЬ»

In the phase of crisis phenomena in the economy, their survival in a competitive environment is of particular importance for many enterprises, and therefore the issues of diagnosing the risk of bankruptcy of business entities are more relevant than ever. When identifying signs of bankruptcy, the management of companies focuses on the development and implementation of such measures that would avoid it and build the enterprise to a new stage of development. In this regard, one of the most important components of bankruptcy prevention measures is the development of a bankruptcy prevention strategy or an anti-crisis management strategy. To overcome the insolvency of ineffectively operating economic entities, at an early stage, the problem of developing an organizational and economic mechanism and measures that will strengthen the position of an enterprise in the market and help to postpone possible bankruptcy becomes dominant. The inclusion of bankruptcy in the mechanism of state regulation, which followed the formation of new economic relations in the Russian Federation, objectively required a rethinking of the previously accumulated theoretical and methodological developments and practical solutions. This article presents a visual analysis of the organizationand the process of forming a strategy to prevent bankruptcy on the example of a specific enterprise - “OAO Radiodetal”. In the financial condition of the investigated enterprise, a number of problem areas are highlighted; a strategy for preventing bankruptcy is being formed at the enterprise. In the course of assessing the process of forming a bankruptcy prevention strategy at “OAO Radiodetal”, a number of shortcomings were also noted, the key of which is the lack of analysis of the external environment, which may lead to not taking into account important factors of the enterprise's activities. When implementing a bankruptcy prevention strategy and at the initial stages of its formation, specialists involved in this rely on the results of assessing the likelihood of bankruptcy.

РАЗВИТИЕ МОДЕЛЕЙ ПРОГНОЗИРОВАНИЯ ВЕРОЯТНОСТИ БАНКРОТСТВА В КОНТЕКСТЕ ФИНАНСОВОЙ БЕЗОПАСНОСТИ БИЗНЕСА

Forecasting is one of the most important stages in planning future policies to ensure economic security. And countering the financial insolvency of an enterprise should begin with predicting the risk of this phenomenon. The risk of bankruptcy is predicted using domestic and foreign models for predicting potential threats to the organization's financial security. However, many of these models are outdated or not focused on the conditions of our country's economy, which affects the reliability of the results obtained and the effectiveness of decisions based on them. In this regard, there is an increased need to develop new models for identifying signs of bankruptcy and the pre-crisis state of the organization, which could form a more reliable opinion about the financial condition of the object for rapid measures to bring the business out of a crisis or unfavorable state.

The restructuring of the debtor as a means bankruptcy warnings under european law legislation

Directive on preventive restructuring 1023/2019 (hereinafter referred to as the Directive) guarantees the right of bona fide and prospective commercial entities (hereinafter‑debtors) to initiate a preventive restructuring procedure in the absence of signs of bankruptcy, subject to the mandatory consent of the debtor and the majority of creditors, while, if the disagreement of the majority of creditors is not economically justified, the procedure can be approved by the authorized body (hereinafter — the court). The purpose of the procedure is to prevent bankruptcy in advance. A significant common characteristic of preventive restructuring and bankruptcy proceedings is the collective extension of legal consequences to all creditors, including those who disagree, because a single legal will is economically necessary to achieve the goal. In addition, it prohibits any of the creditors, including those from the dissenting minority, from starting enforcement proceedings (bankruptcy proceedings or enforcement proceedings) at a certain period, even if there are grounds provided for by law, since the legal consequences apply to all creditors, which ensures the incentive and effectiveness of the measures taken and avoids a conflict of creditors due to different assessments of the economic situation and prospects of the debtor.

CONDUCTING FINANCIAL AND ECONOMIC EXAMINATIONS RELATED TO BANK FAILURE

According to experience of the banking system existence of Ukraine it is obvious that every year an increasing number of banks are negatively affected by the financial crisis, which is the result of a wave of liquidation and bankruptcy of banking institutions.
 Recently, a large number of requests have been sent to forensic institutions for conducting forensic economic examinations on the issues of a comprehensive analysis of the financial and economic activities of banks as well as on establishing features of concealing bankruptcy, fictitious bankruptcy or leading to bankruptcy. This is primarily due to the need to establish the possibility or impossibility of paying off monetary obligations including on deposits in the bank; analysis of the impact of certain management policies on the financial condition of banks; search for directions for optimizing costs and income of banks etc.
 While performing a forensic examination on concealing bankruptcy, fictitious bankruptcy or bringing bankruptcy within the scope of his competence, a forensic
 expert shall give an opinion on the presence or absence at the enterprise of economic signs of fictitious bankruptcy, leading to bankruptcy or concealment of bankruptcy on the basis of the criteria defined in Guidelines No. 14. The calculation of these indicators for a bank is impossible due to the fact that there are differences in the determination of insolvency of the bank and the business entity due to the economic and legal nature of banks and the procedural steps for determining such insolvency.
 Currently, there is no legislatively approved methodology for determining the economic signs of bankruptcy, fictitious bankruptcy, hidden bankruptcy specifically for banks, which makes it impossible to calculate such financial and economic indicators of the bank as bankruptcy, fictitious bankruptcy, hidden bankruptcy.

АКТУАЛЬНІ ПИТАННЯ ВИЗНАЧЕННЯ СКЛАДУ СУБ’ЄКТІВ КРИМІНАЛЬНОЇ ВІДПОВІДАЛЬНОСТІ ЗА ДОВЕДЕННЯ ДО БАНКРУТСТВА

The component of the crime, which is provided by Article 219 of the Criminal Code of Ukraine, as a subject of the crime has been studied. It is concluded that the legislation is imperfect in terms of determining such an element of the crime as the subject. Additionally, the thesis about the impossibility of criminalization of subjects of bankruptcy for bringing all officials to bankruptcy is substantiated, as the inclusion of officials of public authorities in the crime, which is provided by Article 219 of the Criminal Code of Ukraine is unconstructive given the types of entities that may be declared bankrupt. It is noted that given that the arbitral trustee is not protected by labor law, is registered and accountable as an independent professional, it is inappropriate to recognize him as an official of the debtor. At the same time, given the likelihood of him committing acts aimed at bringing the debtor to bankruptcy, he must be an independent subject of liability for the crime, which is provided for in Article 219 of the Criminal Code of Ukraine. It is argued that the recognition of an independent subject of criminal liability for bringing to bankruptcy of interested persons in respect of the debtor within the meaning of Art. 1 of the Labor Code will solve the problem of bringing to justice for committing a crime under Article 219 of the Criminal Code of Ukraine officials who held this position for the last three years, preceding the appearance of signs of bankruptcy and persons related to the debtor. On the basis of the conducted research the inclusion of the interested persons concerning the debtor which structure is fixed in Art. 1 of the Labor Code and individuals to the subjects of the crime, which is provided by Article 219 of the Criminal Code of Ukraine; the recognition of the arbitral trustee as an independent subject of the crime, which is provided by Article 219 of the Criminal Code of Ukraine, has been proved.