Features of the application of discriminant analysis in modern conditions
In the article there have been applied the methods of discriminant analysis to build bankruptcy prediction models for Ukrainian business companies based on financial reporting data. Investigated foreign and domestic methods of analysis of the probability of insolvent companies’ bankruptcy, defined their advantages and disadvantages and the possibility of using for Ukrainian practice. During the modelling the potential advantages and the significant restraints of using both methods, the analysis and comparison of statistical significance and forecasting power of the developed models are conducted. It has been determined, what models should be applied in crisis condition practical assessment and the bankruptcy diagnostics of the enterprise. The analysis of the likelihood of bankruptcy for JSC «Ukrtelecom» on foreign models and by O.O Tereshchenko model, model evaluation Matviychuk A. and the Russian R-model. The obtained results allow to assert that prediction of bankruptcy of companies using the chosen methods is not perfect in Ukrainian reality due to the peculiarities of the market; therefore, there is a need for developing and applying alternative methods which are, primarily, less demanding of information base volume.
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