Full Article: PDF
Scientific Object Identifier: http://s-o-i.org/1.1/TAS-01-117-1
DOI: https://dx.doi.org/10.15863/TAS.2023.01.117.1
Language: English
Citation: Kudaybergenov, J., & Elmurodov, Sh. (2023). Determinants of financial distress of selected companies in Uzbekistan. ISJ Theoretical & Applied Science, 01 (117), 1-6. Soi: http://s-o-i.org/1.1/TAS-01-117-1 Doi: https://dx.doi.org/10.15863/TAS.2023.01.117.1 |
Pages: 1-6
Published: 30.01.2023
Abstract: Since the global financial crisis, which was a sudden shock for all entities on the planet, the term "financial crisis" has become the subject of intensely contentious discussion. A great number of businesses were unable to withstand its waves and were unsuccessful in coping with its impact and implications. The government was also weakened during this time of crisis, and they were unable to lend helping hands to businesses in order for them to recover. Only state-owned businesses were shielded from the effects of the financial crisis and offered financial assistance from the funds made available by the government because of the vital role they play in maintaining social and economic order. As a result of the government's support for the financial crisis management policy, state-owned companies were able to maintain their financial viability and locate a path that led them out of the gloom into the light. This paper investigates the capabilities of selected state-owned companies in Uzbekistan to manage financial crises as well as the extent to which those companies are experiencing financial distress. Applying Enyi's model of relative solvency to four strategically important state-owned enterprises in Uzbekistan that are active in four distinct industries. Another couple of state-owned companies, which operate in the metal and chemical industries, are found to be in poor financial health with a probability of financial crisis that is lower than the average. However, state-owned companies in the automotive and oil and gas industries are found to be financially healthy with a very low probability of financial crisis.
Key words: financial crisis, state owned companies, financial distress, Enyi’s model.
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