ANALYSIS OF COMPANIES’ INSOLVENCY
Keywords:
Insolvency, bankruptcy, liquidation, financial statement, bankruptcy prediction model, judicial rehabilitation, Altman, Springate, Taffler&Tisshaw, Liss, Zavgren, Konan, linear discriminant analytical models.Abstract
Nowadays, constant analysis of companies’ financial position is an important consideration due to several reasons. The article discusses the economic insolvency, liquidation and bankruptcy of companies in Uzbekistan, as well as, in developed countries such as the Group of Seven (G-7). In Uzbekistan, insolvency proceedings are carried out by special regulatory bodies according to the “Law on Bankruptcy and Insolvency” using several procedures. There also have been significant changes in the number of business closures in recent years, both nationally and globally.
Furthermore, potential risks and financial failures can be prevented by means of bankruptcy prediction models. This article reviews the accuracy of each model, as well as, suggests some measures against insolvency and bankruptcy.
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