Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises
Journal: Business Ethics and Leadership (BEL) (Vol.9, No. 2)Publication Date: 2025-07-04
Authors : Dmytro Kozlovskyy; Olga Garafonova;
Page : 160-173
Keywords : agribusiness; bankruptcy; business leadership; clustering; crisis management; financial stability; integrated index; logistic regression; principal component analysis (PCA); risk;
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.
Other Latest Articles
- Entrepreneurial Orientation, Affective Commitment, and Transformational Leadership’s Impacts on SMEs’ Innovation Performance
- Conflict Management Towards Creating an Open Community: Integrated Models for Measuring and Scenario Forecasting the Level of Social Stress in Local Communities
- Transparency in Human Capital Disclosure in Non-Financial Reporting: Towards Ethical Governance and Corporate Social Responsibility in Banking
- Exploring Underrepresented Employee Perceptions of AI Receptivity Through Leaders’ Stakeholder Engagement
- Clustering National Open Science and Open Access Policies: A Comparative Analysis of the Research Ethics Standards of European Countries
Last modified: 2025-07-15 17:35:39