Ranking Score of Financial Condition and Fear of Bankruptcy to Evaluate Operation’s Continuity of Dairy Milk Processing Companies: Evidence from the Republic of Belarus
Abstract:The article covers issues of bankruptcy detection in the context of dairy milk processing companies of the Republic of Belarus. Republic of Belarus is exporter of milk products i.e. more than 60% of products are exported abroad. Gross output of milk products is more than 7 thou tons. To keep successful functioning of diary milk processing companies it is important to estimate financial condition of the companies and detect possibility of bankruptcy in time. The article contains 11 models of bankruptcy detectio… Show more
“…The rural economy can be called laborious. The most significant factor is the number of employees, and their productivity (Kontsevaya, Сhachotkin, Kostina and Khoruziy, 2019). Enterprises should increase their average labor productivity by almost 2.2 times (to the level of marginal labor productivity of 3.2 million rubles per person).…”
In the modern economy, the process of studying independent and alternative approaches to studying a business (organization) is happening more and more. Such alternative approaches of today include: “neoclassical theory”, “theory of transaction costs” (theory of specific assets), “theory of incomplete contracts” (theory of property rights), and also “agent theory” (theory of incentives). Such integrated systems and approaches of economics and management as “resource theory”, “knowledge theory”, “strategic theory”, “entrepreneurial theory”, “network theory”, “theory of resource dependence”, “theory of institutional isomorphism”, “theory of situational choice", "The theory of strategic choice" is currently promising and relevant. The article discusses the basic model of neoclassical theory. The main superiority of this theory is expressed in the fact that it predetermines the technological component as a whole as an economy in the broad sense of the understanding and depends on the scale of activity of the economic entity. Moreover, this theory provides for the reflection of savings in the activities of an economic entity, taking into account the scale of activity and business processes (factors) that characterize the volume of production and turnover of organizations. In the framework of the approach under consideration, a certain macrostructure is determined that incurs costs of economic resources: fixed assets, the number of employees that affect the turnover of organizations. The rational management task that the Udmurt Republic encounters is to determine the forecast for the turnover of organizations for given resources and in calculating the fixed assets necessary for its value and the number of employees. It was revealed that the rural economy of Udmurtia has a negligible effect on the scale of resources, since with a simultaneous increase in labor and capital by 1%, the turnover of organizations increases by 1.82%, and the final product is most dependent on the state of the workforce, as the current state the equipment used is in critical condition in terms of wear and efficiency.
“…The rural economy can be called laborious. The most significant factor is the number of employees, and their productivity (Kontsevaya, Сhachotkin, Kostina and Khoruziy, 2019). Enterprises should increase their average labor productivity by almost 2.2 times (to the level of marginal labor productivity of 3.2 million rubles per person).…”
In the modern economy, the process of studying independent and alternative approaches to studying a business (organization) is happening more and more. Such alternative approaches of today include: “neoclassical theory”, “theory of transaction costs” (theory of specific assets), “theory of incomplete contracts” (theory of property rights), and also “agent theory” (theory of incentives). Such integrated systems and approaches of economics and management as “resource theory”, “knowledge theory”, “strategic theory”, “entrepreneurial theory”, “network theory”, “theory of resource dependence”, “theory of institutional isomorphism”, “theory of situational choice", "The theory of strategic choice" is currently promising and relevant. The article discusses the basic model of neoclassical theory. The main superiority of this theory is expressed in the fact that it predetermines the technological component as a whole as an economy in the broad sense of the understanding and depends on the scale of activity of the economic entity. Moreover, this theory provides for the reflection of savings in the activities of an economic entity, taking into account the scale of activity and business processes (factors) that characterize the volume of production and turnover of organizations. In the framework of the approach under consideration, a certain macrostructure is determined that incurs costs of economic resources: fixed assets, the number of employees that affect the turnover of organizations. The rational management task that the Udmurt Republic encounters is to determine the forecast for the turnover of organizations for given resources and in calculating the fixed assets necessary for its value and the number of employees. It was revealed that the rural economy of Udmurtia has a negligible effect on the scale of resources, since with a simultaneous increase in labor and capital by 1%, the turnover of organizations increases by 1.82%, and the final product is most dependent on the state of the workforce, as the current state the equipment used is in critical condition in terms of wear and efficiency.
“…The theoretical and methodological basis of the research includes the established scientific methods, works of Russian scholars (Balalova et al 2021;Bessonov and Suglobov 2019;Dudukalova et al 2020;Kontsevaya et al 2020;Maksaev et al 2021;Maloletko et al 2021;Mityushina et al 2017;Nabiyeva 2021;Orlova et al 2020;Rodionov et al 2020;Shinkareva et al 2021;Starodubtseva et al 2021;Volkov et al 2018), and recommendations of research institutions on this topic. The assessment of the current level of operating forms of the dairy complex involves methods of knowledge, analysis, and synthesis, as well as monographic and abstract-logical methods.…”
The research relevance is connected with the need to increase dairy resources in small forms of farming, increase the level of organization of dairy cattle breeding, and form a stock of dairy products in the conditions of sanctions and embargo. Using the methods of economic research, the authors analyze the development of dairy cattle breeding in the Republic of Tatarstan. Moreover, the authors reveal current trends in production, procurement, and sales of milk and milk products by agricultural producers of different management forms. Additionally, the authors reveal the reserves for increasing the efficiency of the potential use in the dairy sector. The authors develop proposals for expanding economic activity in cattle breeding for small farms. Moreover, the authors propose ways of increasing the role of consumer agricultural cooperation in the development of dairy cattle breeding in peasant (farm) enterprises and private subsidiary farms by improving the forms and methods of state support for the replenishment of dairy herds with pedigree cows. The authors also put forward proposals on creating consumer purchasing and marketing cooperatives to sell milk and dairy products produced by rural residents and farms. Additionally, it is proposed to increase the competitiveness of consumer purchasing and marketing cooperatives in the market of milk and dairy products by increasing scientific support for their activities.
“…The scientific basis of this study is formed by the conventional methods of research and the works of Russian scholars on the role of cooperation in ensuring regional food security (Balalova et al 2021;Bank et al 2018;Bessonov and Suglobov 2019;Bessonova et al 2018Bessonova et al , 2021Dudukalova et al 2020;Kontsevaya et al 2020Kontsevaya et al , 2015Maksaev et al 2021;Maloletko et al 2021;Nabiyeva 2021;Ryabova et al 2020;Sekerin et al 2019;Shamin et al 2020). Additionally, we considered the sustainable development of cooperatives, household farms, and farming cooperatives; their share in the overall production of agricultural goods and in national food security.…”
The scientific novelty, relevance, and socio-economic impact of procurement and sales by consumer cooperatives lie in ensuring regional food security and increasing the efficiency of cooperative and household farms. Food security is the most important part of socio-economic policies in any country. It serves as an essential factor for increasing the quality of life and the standard of living. The Government of the Russian Federation developed several measures for implementing the Food Security Doctrine of the Russian Federation. Federal and regional authorities systematically evaluate and improve the food security of Russia, develop and implement new legal provisions. In this study, we described the operational and social mission of farming enterprises and households of Russia and its regions. Moreover, we outlined the development potential of cooperatives and their interaction with farming enterprises and households. We examined the mechanism of collaboration between several small-sized forms of enterprises and cooperatives in the formation of food resources in the modern economy. Additionally, we analyzed the efficiency of small agricultural enterprises in using rural resources and population for providing high-quality food products to the nation.
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