publication . Article . 2019

THE IMPACT OF DOWNSIZING ON THE BANKRUPTCY OF RUSSIAN COMPANIES

E. A. Fedorova; V. S. Strelkov;
Open Access
  • Published: 01 Jul 2019 Journal: Strategic decisions and risk management, volume 10, pages 134-143 (issn: 2618-947X, eissn: 2618-9984, Copyright policy)
  • Publisher: Real Economy Publishing
Abstract
<jats:p>Links between staff reductions and the company’s bankruptcyare identified. The empirical base of research included 650 companies (150 bankrupts) in the manufacturing industry and 1,500 companies (410 bankrupts) in the construction industry. The logit model was implemented in the center of a research methodology. According to the research it was revealed that the reduction of staff by 3%, 5%, 7% and 10% leads to the company’s bankruptcy. Moreover, the meaningful factor of bankruptcy is the change in financial, physical and intangible resources used by company to reverse negative consequences of the stuff reduction.</jats:p>
Persistent Identifiers
Subjects
free text keywords: forecasting, staff reduction, logit model, company resources, risk-management, Manufacturing, business.industry, business, Risk management, Bankruptcy, Research methodology, Accounting, Construction industry, lcsh:Risk in industry. Risk management, lcsh:HD61
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