| Issue |
SHS Web Conf.
Volume 62, 2019
17th International Scientific Conference “Problems of Enterprise Development: Theory and Practice” 2018
|
|
|---|---|---|
| Article Number | 13002 | |
| Number of page(s) | 4 | |
| Section | Improvement of Accounting and Analytical Support of Sustainable Development of Social and Economic Systems | |
| DOI | https://doi.org/10.1051/shsconf/20196213002 | |
| Published online | 15 March 2019 | |
Binary Choice Models-based Assessment of Company’s Financial Sustainability
Samara State University of Economics, Samara, Russia
* Corresponding author: elsu5463@gmail.com
Assessment of financial sustainability is a key instrument that every company should use to successfully operate in the contemporary marketplace. In this paper profit was chosen as one of the sustainability indices and binary choice model logistics regression model (logit model) was built for that index. The research data for this study is drawn from accounting statements of a textile industry business in Samara city. A combination of econometric approaches was used in the data analysis. Binary choice models were adopted in this research. Then those models were estimated for validity. Also scenario forecasts methodology was employed in this study. Several logit models with a set of explanatory variables were constructed. After the comparison of those models the preferred one was determined. Based on that model a scenario for profits was forecasted including both the worst-case and the best-case ones. The average-case scenario forecast was also made.
Key words: financial sustainability / forecasting / logit model / profit
© The Authors, published by EDP Sciences, 2019
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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