State policy on the functioning of institute of bankruptcy in Ukraine
DOI:
https://doi.org/10.34021/ve.2019.02.04(5)Keywords:
bankruptcy institute, trend model, state policy, Ukrainian economy, crisisAbstract
The main task of state regulation of the bankruptcy institute in the course of adjusting the activities of the subjects is the formation of such conditions for the functioning of the national economy, which will reduce the risk of doing business for all its entities and promote the internal reorganization of its structure in accordance with the requirements of global transformations. The system of indicators describing the situation in a certain area of the functioning of national economic entities allows us to determine, directly or indirectly, the effectiveness of the bankruptcy institute at the macro-level. To analyze the impact of each of the factors on GDP, a sensitivity analysis was conducted according to which input data X were recorded at the values of 2018 and alternately changed by 10%. For each such change, GDP was calculated as compared to the model value for 2018. As a result of the calculations, the most sensitive factors were identified and the features of the functioning of the bankruptcy institute in the Ukrainian economy were identified. The main provisions of a state policy aimed at increasing the functional effectiveness of the bankruptcy institute are formulated. First of all, it is necessary to promote the country's position in the Doing business rankings, as well as the Indexes of Economic Freedom and Corruption Perceptions. On the other hand, the annual growth of the inflation index of around 10% and the level of the fiscal tax burden will also have a positive effect on GDP dynamics.
Downloads
Download data is not yet available.
References
Altman, E. I. (2002). Corporate distress prediction models in a turbulent economic and Basel II environment. Retrieved from http://hdl.handle.net/2451/26496
Barreda, A. A., Kageyama, Y., Singh, D., & Zubieta, S. (2017). Hospitality bankruptcy in United States of America: A multiple discriminant analysis-logic model comparison. Journal of Quality Assurance in Hospitality & Tourism, 18(1), 86-106. https://doi.org/10.1080/1528008X.2016.1169471
Bernhardsen, E. (2001). A model of bankruptcy prediction. Working Paper, 10. Retrieved from https://www.norges-bank.no/en/news-events/news-publications/Papers/Working-Papers/2001/200110/
Daily, C. M., & Dalton, D. R. (1994). Bankruptcy and corporate governance: The impact of board composition and structure. Academy of Management journal, 37(6), 1603-1617. https://doi.org/10.5465/256801
Daniela, R., Mária, B., & Lucia, J. (2016). Analysis of the construction industry in the Slovak Republic by bankruptcy model. Procedia-Social and Behavioral Sciences, 230, 298-306. https://doi.org/10.1016/j.sbspro.2016.09.038
Dakovic, R., Czado C., & Berg, D. (2010). Bankruptcy prediction in Norway: a comparison study. Applied Economics Letters, 17(17), 1739-1746. https://doi.org/10.1080/13504850903299594
Derzhavna sluzhba statystyky Ukrainy [State Statistics Service of Ukraine]. Retrieved from http://www.ukrstat.gov.ua/ [in Ukrainian].
Douginets, A. V. (2004). Osobennosti formirovaniya transaktsionnykh izderzhek ekonomicheskoy integratsii [Features of the formation of transaction costs of economic integration]. Naukovi pratsi Donetskoho natsionalnoho tekhnichnoho universytetu. Seriia: Ekonomichna – Scientific Works of Donetsk National Technical University. Series: Economic, 70, 30-36 [in Russian].
Epstein, G. (2007). Central banks, inflation targeting and employment creation. Economic and Labour Market Paper 2007/2. Retrieved from https://www.ilo.org/empelm/pubs/WCMS_113901/lang--en/index.htm
Fich, E. M., & Slezak, S. L. (2008). Can corporate governance save distressed firms from bankruptcy? An empirical analysis. Review of Quantitative Finance and Accounting, 30(2), 225-251. https://doi.org/10.1007/s11156-007-0048-5
Golovach, K. S. (2016). Modeli otsinky ymovirnosti bankrutstva u silskohospodarskykh pidpryiemstvakh ta antykryzovyi menedzhment [Bankruptcy Probability Models for Agricultural Enterprises and Anti-Crisis Management]. Ekonomichnyi forum – Economic forum, 3, 189-195. Retrieved from http://nbuv.gov.ua/UJRN/ecfor_ 2016_3_ 28 [in Ukrainian].
Gopalan, R., Gormley, T. A., & Kalda, A. (2018). Director Bankruptcy Experience and Corporate Risk Taking. Kelley School of Business Research Paper, 18-78. Retrieved from https://pdfs.semanticscholar.org/c93b/749298851f338a5d2d29906bcd068fd 49513.pdf
Graham, J. R., Kim, H., Li, S., & Qiu, J. (2019). Employee costs of corporate bankruptcy. National Bureau of Economic Research. https://doi.org/10.3386/w25922
Grice, J. S., & Ingram, R. W. (2001). Tests of the generalizability of Altman's bankruptcy prediction model. Journal of Business Research, 54(1), 53-61. https://doi.org/10.1016/S0148-2963(00)00126-0
Hart, O. (2000). Different approaches to bankruptcy. National Bureau of Economic Research. https://doi.org/10.3386/w7921
Ilkova, N. (2018). Makroekonomichni aspekty funktsionuvannia instytutu bankrutstva [Macroeconomic aspects of bankruptcy institute functioning]. Ekonomichnyi prostir –Economic space, 133, 57-68. https://doi.org/10.30838/P.ES.2224.050718.57.70 [in Ukrainian].
Jackson, T. H. (1982). Bankruptcy, Non-Bankruptcy Entitlements, and the Creditors' Bargain. The Yale Law Journal, 91(5), 857-907.
Koval, V., Duginets, G., Plekhanova, O., Antonov, A., & Petrova, M. (2019). On the supranational and national level of global value chain management. Entrepreneurship and Sustainability Issues, 6(4), 1922-1937. https://doi.org/10.9770/jesi.2019.6.4(27)
Koval, V., Prymush, Y., & Popova, V. (2017). The influence of the enterprise life cycle on the efficiency of investment. Baltic Journal of Economic Studies, 3(5), 183-187. https://doi.org/10.30525/2256-0742/2017-3-5-183-187
Kliestik, T., Misankova, M., Valaskova, K., & Svabova, L. (2018). Bankruptcy prevention: new effort to reflect on legal and social changes. Science and Engineering Ethics, 24(2), 791-803.
Lieb, R. (2006). State Sovereign Immunity: Bankruptcy is Special. American Bankruptcy Institute Law Review, 201. Retrieved from https://www.abi.org/member-resources/law-review/state-sovereign-immunity-bankruptcy-is-special
Livshits, I., MacGee, J., & Tertilt, M. (2007). Consumer Bankruptcy: A Fresh Start. American Economic Review, 97(1), 402-418. https://doi.org/10.1257/aer.97.1.402
Liu, J. (2004). Macroeconomic determinants of corporate failures: evidence from the UK. Applied Economics, 36(9), 939-945. https://doi.org/10.1080/0003684042 000233168
Matviychuk, A. V. (2013). Nechitki, neiromerezhevi ta dyskryminantni modeli diahnostuvannia mozhlyvosti bankrutstva pidpryiemstv [Fuzzy, neural network and discriminatory models of enterprise bankruptcy diagnosis]. Neiro-nechitki tekhnolohii modeliuvannia v ekonomitsi – Neuro-fuzzy Modeling Techniques in Economics, 2, 71-118. http://nbuv.gov.ua/UJRN/Nntm_2013_2_6 [in Ukrainian].
Mitman, K. (2016). Macroeconomic Effects of Bankruptcy and Foreclosure Policies. American Economic Review, 106(8), 2219-2255. https://doi.org/10.1257/aer.20120512
Moulton, W. N., & Thomas, H. (1993). Bankruptcy as a deliberate strategy: Theoretical considerations and empirical evidence. Strategic Management Journal, 14(2), 125-135. https://doi.org/10.1002/smj.4250140204
Nosan, N.S. (2016). Adaptatsiia yevropeyskogo dosvidu funktsionuvannia mekhanizmu bankrutstva pidpryiemstv u vitchyznianii praktytsi [Adapting of the European experience of the bankruptcy functioning in domestic practice]. Investytsii: praktyka ta dosvid – Investments: practice and experience, 18, 52-56 [in Ukrainian]
Ohlson, J. (1980). Financial Ratios and the Probabilistic Prediction of Bankruptcy. Journal of Accounting Research, 18(1), 118. https://doi.org/10.2307/2490395
Ofitsiinyi veb-portal "Sudova vlada Ukrainy" [Official Web-portal "Judiciary of Ukraine"]. Retrieved from http://court.gov.ua/ [in Ukrainian].
Panchuk, L. V. (2012). Reorhanizatsiia TNK yak zasib zapobihannia bankrutstvu [Reorganization of TNCs as a means of preventing bankruptcy]. Mizhnarodna ekonomichna polityka – International Economic Policy, 1, 552-559 [in Ukrainian].
Parker, S., Peters, G. F., & Turetsky, H. F. (2002). Corporate governance and corporate failure: a survival analysis. Corporate Governance: The international journal of business in society, 2(2), 4-12. https://doi.org/10.1108/14720700210430298
Petryk, O. I., & Polovnov, Yu. (2003). Analiz chynnykiv infliatsii ta yii prohnozuvannia v Ukraini [Analysis of Inflation Factors and its Prediction in Ukraine]. Ekonomika ta prohnozuvannia – Economics and Forecasting, 1, 86-103. Retrieved from http://eip.org.ua/docs/EP_03_1_86_ uk.pdf [in Ukrainian].
Porta, R. L., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance. Journal of Political Economy, 106(6), 1113-1155. https://doi.org/10.1086/250042
Philosophov, L. V., Batten, J. A., & Philosophov, V. L. (2008). Predicting the event and time horizon of bankruptcy using financial ratios and the maturity schedule of long-term debt. Mathematics and Financial Economics, 1(3-4), 181-212. https://doi.org/10.1007/s11579-007-0008-9
Rohlin, S. M., & Ross, A. (2016). Does bankruptcy law affect business turnover? Evidence from new and existing business. Economic Inquiry, 54(1), 361-374. https://doi.org/10.1111/ecin.12230
Subbot, A. (2014). Shliakhy vdoskonalennia mekhanizmu protsedury bankrutstva v Ukraini na osnovi mizhnarodnoho dosvidu [Ways to improve the mechanism of bankruptcy in Ukraine and the basis of international experience]. Viche, 18, 24-28. Retrieved from http://nbuv.gov.ua/UJRN/viche_ 2014_18_7 [in Ukrainian].
Shen, C. H., Chen, Y. K., & Huang, B. Y. (2010). The prediction of default with outliers: Robust logistic regression. In Handbook of quantitative finance and risk management, (pp. 965-977). Boston, MA: Springer.
The Center for Economic Strategy. (2016). How much does Corruption Cost in Ukraine. Research Paper, October 5. Retrieved from https://ces.org.ua/wp-content/ uploads/2016/09/How-much-does-Corruption-Cost-Ukraine_Research-Paper.pdf
The World Bank (2017). GDP per capita, PPP (current international $). Retrieved from https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?view=chart.
Trots, I. (2014). Statystychnyi ohliad bankrutstva ukrainskykh pidpryiemstv: natsionalnyi ta rehionalnyi aspekt [Statistical Review of Bankruptcy of Ukrainian Enterprises: National and Regional Aspects]. Visnyk sotsialno-ekonomichnykh doslidzhen – Socio-Economic Research Bulletin, 3(54), 170-178. Retrieved from http://nbuv.gov.ua/UJRN/Vsed_2014_3_28 [in Ukrainian].
Vlieghe, W. G. (2001). Indicators of fragility in the UK corporate sector, Monetary Assessment and Strategy Division. Working Paper, Bank of England.
Wright, J. H. (2009). Forecasting US inflation by Bayesian model averaging. Journal of Forecasting, 28(2), 131-144. https://doi.org/10.1002/for.1088
Yankovyi, O., Goncharov, Yu., Koval, V., & Lositska, T. (2019). Optimization of the capital-labor ratio on the basis of production functions in the economic model of production. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu – Scientific Bulletin of National Mining University, 4, 134-140.
Yepifanova, I. M. (2017). Bankrutstvo pidpryiemstv: spektr nevyrishenykh problem [The Bankruptcy of enterprises: the spectrum of unresolved problems]. Ekonomika: realii chasu – Economics: realities of time, 1(29), 55-63. Retrieved from http://economics.opu.ua/files/archive/2017/No1/55.pdf [in Ukrainian].
Zhu, J., Jia, F., & Wu, H. (2019). Bankruptcy costs, economic policy uncertainty, and FDI entry and exit. Review of International Economics. https://doi.org/10.1111/roie.12412
Barreda, A. A., Kageyama, Y., Singh, D., & Zubieta, S. (2017). Hospitality bankruptcy in United States of America: A multiple discriminant analysis-logic model comparison. Journal of Quality Assurance in Hospitality & Tourism, 18(1), 86-106. https://doi.org/10.1080/1528008X.2016.1169471
Bernhardsen, E. (2001). A model of bankruptcy prediction. Working Paper, 10. Retrieved from https://www.norges-bank.no/en/news-events/news-publications/Papers/Working-Papers/2001/200110/
Daily, C. M., & Dalton, D. R. (1994). Bankruptcy and corporate governance: The impact of board composition and structure. Academy of Management journal, 37(6), 1603-1617. https://doi.org/10.5465/256801
Daniela, R., Mária, B., & Lucia, J. (2016). Analysis of the construction industry in the Slovak Republic by bankruptcy model. Procedia-Social and Behavioral Sciences, 230, 298-306. https://doi.org/10.1016/j.sbspro.2016.09.038
Dakovic, R., Czado C., & Berg, D. (2010). Bankruptcy prediction in Norway: a comparison study. Applied Economics Letters, 17(17), 1739-1746. https://doi.org/10.1080/13504850903299594
Derzhavna sluzhba statystyky Ukrainy [State Statistics Service of Ukraine]. Retrieved from http://www.ukrstat.gov.ua/ [in Ukrainian].
Douginets, A. V. (2004). Osobennosti formirovaniya transaktsionnykh izderzhek ekonomicheskoy integratsii [Features of the formation of transaction costs of economic integration]. Naukovi pratsi Donetskoho natsionalnoho tekhnichnoho universytetu. Seriia: Ekonomichna – Scientific Works of Donetsk National Technical University. Series: Economic, 70, 30-36 [in Russian].
Epstein, G. (2007). Central banks, inflation targeting and employment creation. Economic and Labour Market Paper 2007/2. Retrieved from https://www.ilo.org/empelm/pubs/WCMS_113901/lang--en/index.htm
Fich, E. M., & Slezak, S. L. (2008). Can corporate governance save distressed firms from bankruptcy? An empirical analysis. Review of Quantitative Finance and Accounting, 30(2), 225-251. https://doi.org/10.1007/s11156-007-0048-5
Golovach, K. S. (2016). Modeli otsinky ymovirnosti bankrutstva u silskohospodarskykh pidpryiemstvakh ta antykryzovyi menedzhment [Bankruptcy Probability Models for Agricultural Enterprises and Anti-Crisis Management]. Ekonomichnyi forum – Economic forum, 3, 189-195. Retrieved from http://nbuv.gov.ua/UJRN/ecfor_ 2016_3_ 28 [in Ukrainian].
Gopalan, R., Gormley, T. A., & Kalda, A. (2018). Director Bankruptcy Experience and Corporate Risk Taking. Kelley School of Business Research Paper, 18-78. Retrieved from https://pdfs.semanticscholar.org/c93b/749298851f338a5d2d29906bcd068fd 49513.pdf
Graham, J. R., Kim, H., Li, S., & Qiu, J. (2019). Employee costs of corporate bankruptcy. National Bureau of Economic Research. https://doi.org/10.3386/w25922
Grice, J. S., & Ingram, R. W. (2001). Tests of the generalizability of Altman's bankruptcy prediction model. Journal of Business Research, 54(1), 53-61. https://doi.org/10.1016/S0148-2963(00)00126-0
Hart, O. (2000). Different approaches to bankruptcy. National Bureau of Economic Research. https://doi.org/10.3386/w7921
Ilkova, N. (2018). Makroekonomichni aspekty funktsionuvannia instytutu bankrutstva [Macroeconomic aspects of bankruptcy institute functioning]. Ekonomichnyi prostir –Economic space, 133, 57-68. https://doi.org/10.30838/P.ES.2224.050718.57.70 [in Ukrainian].
Jackson, T. H. (1982). Bankruptcy, Non-Bankruptcy Entitlements, and the Creditors' Bargain. The Yale Law Journal, 91(5), 857-907.
Koval, V., Duginets, G., Plekhanova, O., Antonov, A., & Petrova, M. (2019). On the supranational and national level of global value chain management. Entrepreneurship and Sustainability Issues, 6(4), 1922-1937. https://doi.org/10.9770/jesi.2019.6.4(27)
Koval, V., Prymush, Y., & Popova, V. (2017). The influence of the enterprise life cycle on the efficiency of investment. Baltic Journal of Economic Studies, 3(5), 183-187. https://doi.org/10.30525/2256-0742/2017-3-5-183-187
Kliestik, T., Misankova, M., Valaskova, K., & Svabova, L. (2018). Bankruptcy prevention: new effort to reflect on legal and social changes. Science and Engineering Ethics, 24(2), 791-803.
Lieb, R. (2006). State Sovereign Immunity: Bankruptcy is Special. American Bankruptcy Institute Law Review, 201. Retrieved from https://www.abi.org/member-resources/law-review/state-sovereign-immunity-bankruptcy-is-special
Livshits, I., MacGee, J., & Tertilt, M. (2007). Consumer Bankruptcy: A Fresh Start. American Economic Review, 97(1), 402-418. https://doi.org/10.1257/aer.97.1.402
Liu, J. (2004). Macroeconomic determinants of corporate failures: evidence from the UK. Applied Economics, 36(9), 939-945. https://doi.org/10.1080/0003684042 000233168
Matviychuk, A. V. (2013). Nechitki, neiromerezhevi ta dyskryminantni modeli diahnostuvannia mozhlyvosti bankrutstva pidpryiemstv [Fuzzy, neural network and discriminatory models of enterprise bankruptcy diagnosis]. Neiro-nechitki tekhnolohii modeliuvannia v ekonomitsi – Neuro-fuzzy Modeling Techniques in Economics, 2, 71-118. http://nbuv.gov.ua/UJRN/Nntm_2013_2_6 [in Ukrainian].
Mitman, K. (2016). Macroeconomic Effects of Bankruptcy and Foreclosure Policies. American Economic Review, 106(8), 2219-2255. https://doi.org/10.1257/aer.20120512
Moulton, W. N., & Thomas, H. (1993). Bankruptcy as a deliberate strategy: Theoretical considerations and empirical evidence. Strategic Management Journal, 14(2), 125-135. https://doi.org/10.1002/smj.4250140204
Nosan, N.S. (2016). Adaptatsiia yevropeyskogo dosvidu funktsionuvannia mekhanizmu bankrutstva pidpryiemstv u vitchyznianii praktytsi [Adapting of the European experience of the bankruptcy functioning in domestic practice]. Investytsii: praktyka ta dosvid – Investments: practice and experience, 18, 52-56 [in Ukrainian]
Ohlson, J. (1980). Financial Ratios and the Probabilistic Prediction of Bankruptcy. Journal of Accounting Research, 18(1), 118. https://doi.org/10.2307/2490395
Ofitsiinyi veb-portal "Sudova vlada Ukrainy" [Official Web-portal "Judiciary of Ukraine"]. Retrieved from http://court.gov.ua/ [in Ukrainian].
Panchuk, L. V. (2012). Reorhanizatsiia TNK yak zasib zapobihannia bankrutstvu [Reorganization of TNCs as a means of preventing bankruptcy]. Mizhnarodna ekonomichna polityka – International Economic Policy, 1, 552-559 [in Ukrainian].
Parker, S., Peters, G. F., & Turetsky, H. F. (2002). Corporate governance and corporate failure: a survival analysis. Corporate Governance: The international journal of business in society, 2(2), 4-12. https://doi.org/10.1108/14720700210430298
Petryk, O. I., & Polovnov, Yu. (2003). Analiz chynnykiv infliatsii ta yii prohnozuvannia v Ukraini [Analysis of Inflation Factors and its Prediction in Ukraine]. Ekonomika ta prohnozuvannia – Economics and Forecasting, 1, 86-103. Retrieved from http://eip.org.ua/docs/EP_03_1_86_ uk.pdf [in Ukrainian].
Porta, R. L., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and finance. Journal of Political Economy, 106(6), 1113-1155. https://doi.org/10.1086/250042
Philosophov, L. V., Batten, J. A., & Philosophov, V. L. (2008). Predicting the event and time horizon of bankruptcy using financial ratios and the maturity schedule of long-term debt. Mathematics and Financial Economics, 1(3-4), 181-212. https://doi.org/10.1007/s11579-007-0008-9
Rohlin, S. M., & Ross, A. (2016). Does bankruptcy law affect business turnover? Evidence from new and existing business. Economic Inquiry, 54(1), 361-374. https://doi.org/10.1111/ecin.12230
Subbot, A. (2014). Shliakhy vdoskonalennia mekhanizmu protsedury bankrutstva v Ukraini na osnovi mizhnarodnoho dosvidu [Ways to improve the mechanism of bankruptcy in Ukraine and the basis of international experience]. Viche, 18, 24-28. Retrieved from http://nbuv.gov.ua/UJRN/viche_ 2014_18_7 [in Ukrainian].
Shen, C. H., Chen, Y. K., & Huang, B. Y. (2010). The prediction of default with outliers: Robust logistic regression. In Handbook of quantitative finance and risk management, (pp. 965-977). Boston, MA: Springer.
The Center for Economic Strategy. (2016). How much does Corruption Cost in Ukraine. Research Paper, October 5. Retrieved from https://ces.org.ua/wp-content/ uploads/2016/09/How-much-does-Corruption-Cost-Ukraine_Research-Paper.pdf
The World Bank (2017). GDP per capita, PPP (current international $). Retrieved from https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?view=chart.
Trots, I. (2014). Statystychnyi ohliad bankrutstva ukrainskykh pidpryiemstv: natsionalnyi ta rehionalnyi aspekt [Statistical Review of Bankruptcy of Ukrainian Enterprises: National and Regional Aspects]. Visnyk sotsialno-ekonomichnykh doslidzhen – Socio-Economic Research Bulletin, 3(54), 170-178. Retrieved from http://nbuv.gov.ua/UJRN/Vsed_2014_3_28 [in Ukrainian].
Vlieghe, W. G. (2001). Indicators of fragility in the UK corporate sector, Monetary Assessment and Strategy Division. Working Paper, Bank of England.
Wright, J. H. (2009). Forecasting US inflation by Bayesian model averaging. Journal of Forecasting, 28(2), 131-144. https://doi.org/10.1002/for.1088
Yankovyi, O., Goncharov, Yu., Koval, V., & Lositska, T. (2019). Optimization of the capital-labor ratio on the basis of production functions in the economic model of production. Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu – Scientific Bulletin of National Mining University, 4, 134-140.
Yepifanova, I. M. (2017). Bankrutstvo pidpryiemstv: spektr nevyrishenykh problem [The Bankruptcy of enterprises: the spectrum of unresolved problems]. Ekonomika: realii chasu – Economics: realities of time, 1(29), 55-63. Retrieved from http://economics.opu.ua/files/archive/2017/No1/55.pdf [in Ukrainian].
Zhu, J., Jia, F., & Wu, H. (2019). Bankruptcy costs, economic policy uncertainty, and FDI entry and exit. Review of International Economics. https://doi.org/10.1111/roie.12412
Downloads
Published
2019-10-27
How to Cite
Orlovska, Y., & Ilkova, N. (2019). State policy on the functioning of institute of bankruptcy in Ukraine. Virtual Economics, 2(4), 86–104. https://doi.org/10.34021/ve.2019.02.04(5)
Issue
Section
Articles
