Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises

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 bus...

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Main Authors: Dmytro Kozlovskyy, Olga Garafonova
Format: Article
Language:English
Published: Academic Research and Publishing UG (AR&P) 2025-07-01
Series:Business Ethics and Leadership
Subjects:
Online Access:https://armgpublishing.com/wp-content/uploads/2025/07/BEL_2_2025_12.pdf
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author Dmytro Kozlovskyy
Olga Garafonova
author_facet Dmytro Kozlovskyy
Olga Garafonova
author_sort Dmytro Kozlovskyy
collection DOAJ
description 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.
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institution Kabale University
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language English
publishDate 2025-07-01
publisher Academic Research and Publishing UG (AR&P)
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series Business Ethics and Leadership
spelling doaj-art-9d149b13d2674f5aaf9f6d3df44386de2025-08-20T03:27:48ZengAcademic Research and Publishing UG (AR&P)Business Ethics and Leadership2520-67612520-63112025-07-019216017310.61093/bel.9(2).160-173.2025Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural EnterprisesDmytro Kozlovskyy0https://orcid.org/0000-0003-2522-7917Olga Garafonova1https://orcid.org/0000-0002-4740-7057Ph.D. student, Department of management, Kyiv National Economics University named after Vadym Hetman, UkraineDoctor of Economics, Professor, Kyiv National Economics University named after Vadym Hetman, UkraineIn 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.https://armgpublishing.com/wp-content/uploads/2025/07/BEL_2_2025_12.pdf agribusinessbankruptcybusiness leadershipclusteringcrisis managementfinancial stabilityintegrated indexlogistic regressionprincipal component analysis (pca)risk
spellingShingle Dmytro Kozlovskyy
Olga Garafonova
Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises
Business Ethics and Leadership
agribusiness
bankruptcy
business leadership
clustering
crisis management
financial stability
integrated index
logistic regression
principal component analysis (pca)
risk
title Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises
title_full Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises
title_fullStr Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises
title_full_unstemmed Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises
title_short Application of Bankruptcy Models as a Tool for Business Leadership and Strategic Crisis Management in Agricultural Enterprises
title_sort application of bankruptcy models as a tool for business leadership and strategic crisis management in agricultural enterprises
topic agribusiness
bankruptcy
business leadership
clustering
crisis management
financial stability
integrated index
logistic regression
principal component analysis (pca)
risk
url https://armgpublishing.com/wp-content/uploads/2025/07/BEL_2_2025_12.pdf
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AT olgagarafonova applicationofbankruptcymodelsasatoolforbusinessleadershipandstrategiccrisismanagementinagriculturalenterprises