Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises
Year: 2025
Type: article
Abstract: In the current unstable environment, Ukraine’s agro-industrial complex faces significant financial pressure, which increases the risk of bankruptcy among enterprises in the sector. This situation generates a growing demand for effective crisis management, which should be an integral component of business leadership systems at the level of agricultural enterprises. This study aims to develop an integrated system for assessing the probability of bankruptcy of farming enterprises based on the combination of three models: Altman’s Z-score, Springate’s S-score, and the Ukrainian UDM model by Tereshchenko. The methodological toolkit includes principal component analysis (PCA), k-means clustering, and logistic regression. The main result is constructing an integrated financial stability index, which allows for highly accurate (up to 95%) identification of enterprises with an elevated risk of bankruptcy. The findings have practical implications for strategic management, financial planning, and the development of responsible business leadership in the agricultural sector.
Source: Business Ethics and Leadership
Authors: Dmytro Kozlovskyy, Olga Garafonova
Language: English
Subfield: Accounting
Domain: Social Sciences
SDG: Zero hunger
Open Access status: diamond
OpenAlex ID: W4412371320