Features of the application of discriminant analysis in modern conditions


  • S.V. Pryjmak Ivan Franko National University of Lviv
  • I.V. Budaj Ivan Franko National University of Lviv
Keywords: enterprise, bankruptcy forecasting, financial stability, discriminant analysis, audit, assessment of the probability of bankruptcy by foreign and domestic practices, Altman model, Sprinheyt model, Model Lisa, bankruptcy evaluation model Tereshchenko

Abstract

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.

References

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Published
2017-03-08
How to Cite
Pryjmak, S., & Budaj, I. (2017). Features of the application of discriminant analysis in modern conditions. Scientific Messenger of LNU of Veterinary Medicine and Biotechnologies. Series "Economical Sciences", 19(76), 86-90. https://doi.org/10.15421/nvlvet7617
Section
Economic efficiency of production and agricultural products alteration