IDEAS home Printed from https://ideas.repec.org/a/url/izvest/v25y2024i1p131-159.html
   My bibliography  Save this article

Crisis resilience assessment and management of public utility companies

Author

Listed:
  • Irina N. Tkachenko

    (Ural State University of Economics, Ekaterinburg, Russia)

  • Ivan A. Chechulin

    (Ural State University of Economics, Ekaterinburg, Russia)

Abstract

Currently, the most frequently used models for forecasting the probability of company bankruptcy in the housing and utilities sector lack accuracy. The hypothesis is put forward that crisis resilience of a company can be assessed based on its adaptive capabilities. The paper aims to construct a more accurate compared to the known regression model for predicting bankruptcies, as well as develop models for assessing the quality of crisis adaptation management at public utility companies allowing for the stakeholders’ interests and peculiarities of their interface. The methodological basis of the study consists of the theory of crisis management and a stakeholder approach. The methods include multiple regression analysis, stakeholder mapping, sociological survey, and expert assessments. The evidence comes from the accounting and statistical reporting of 49 public utility companies, materials of arbitration cases, survey results of 33 heads of organisations obtained in the period from February to March 2023. The theoretical developments are implemented within the empirical studies of public utility companies. To improve crisis adaptation and resilience of public utility companies the findings recommend to launch staff training programmes, establish mechanisms for horizontal intra-sectoral connections and maintain cooperation at the level of public authorities in order to control investments in the housing and utilities sector.

Suggested Citation

  • Irina N. Tkachenko & Ivan A. Chechulin, 2024. "Crisis resilience assessment and management of public utility companies," Journal of New Economy, Ural State University of Economics, vol. 25(1), pages 131-159, April.
    • Handle: RePEc:url:izvest:v:25:y:2024:i:1:p:131-159
    DOI: 10.29141/2658-5081-2024-25-1-7
    as

    Download full text from publisher

    File URL: https://jne.usue.ru/images/download/102/7.pdf
    Download Restriction: no
    File URL: https://jne.usue.ru/en/issues-2024/1448
    Download Restriction: no
    File URL: https://libkey.io/10.29141/2658-5081-2024-25-1-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nicoleta Bărbuță-Mișu & Mara Madaleno, 2020. "Assessment of Bankruptcy Risk of Large Companies: European Countries Evolution Analysis," JRFM, MDPI, vol. 13(3), pages 1-28, March.
    2. Kamini Gupta & Donal Crilly & Thomas Greckhamer, 2020. "Stakeholder engagement strategies, national institutions, and firm performance: A configurational perspective," Strategic Management Journal, Wiley Blackwell, vol. 41(10), pages 1869-1900, October.
    3. Charles L. Merwin, 1942. "Financing Small Corporations in Five Manufacturing Industries, 1926–36," NBER Books, National Bureau of Economic Research, Inc, number merw42-1, July.
    4. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure - Reply," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 123-127.
    5. Witold J. Henisz & Sinziana Dorobantu & Lite J. Nartey, 2014. "Spinning gold: The financial returns to stakeholder engagement," Strategic Management Journal, Wiley Blackwell, vol. 35(12), pages 1727-1748, December.
    6. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 71-111.
    7. Itziar Castelló & Michael Etter & Finn Årup Nielsen, 2016. "Strategies of Legitimacy Through Social Media: The Networked Strategy," Journal of Management Studies, Wiley Blackwell, vol. 53(3), pages 402-432, May.
    8. Taffler, Richard J., 1984. "Empirical models for the monitoring of UK corporations," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 199-227, June.
    9. Patzer, Moritz & Voegtlin, Christian & Scherer, Andreas Georg, 2018. "The Normative Justification of Integrative Stakeholder Engagement: A Habermasian View on Responsible Leadership," Business Ethics Quarterly, Cambridge University Press, vol. 28(3), pages 325-354, July.
    10. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    11. Csaba Lentner & Laszlo Vasa & Szilard Hegedus, 2020. "The Assessment of Financial Risks of Municipally Owned Public Utility Companies in Hungary Between 2009 and 2018," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 16(4), pages 29-41.
    12. Daniel Arenas & Josep Lozano & Laura Albareda, 2009. "The Role of NGOs in CSR: Mutual Perceptions Among Stakeholders," Journal of Business Ethics, Springer, vol. 88(1), pages 175-197, August.
    13. Bendell, Bari L. & Nesij Huvaj, M., 2020. "Does stakeholder engagement through corporate social and environmental behaviors affect innovation?," Journal of Business Research, Elsevier, vol. 119(C), pages 685-696.
    14. Eleni-Plousia Kosteroglou & Georgios Theriou & Dimitrios Chatzoudes, 2016. "Customer satisfaction from private utility companies: An explanatory study," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 9(3), pages 13-23, December.
    15. Christof Miska & Christian Hilbe & Susanne Mayer, 2014. "Reconciling Different Views on Responsible Leadership: A Rationality-Based Approach," Journal of Business Ethics, Springer, vol. 125(2), pages 349-360, December.
    16. Watson, Rosina & Wilson, Hugh N. & Macdonald, Emma K., 2020. "Business-nonprofit engagement in sustainability-oriented innovation: What works for whom and why?," Journal of Business Research, Elsevier, vol. 119(C), pages 87-98.
    17. Chen, Jiawen & Liu, Linlin, 2020. "Customer participation, and green product innovation in SMEs: The mediating role of opportunity recognition and exploitation," Journal of Business Research, Elsevier, vol. 119(C), pages 151-162.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Šlefendorfas Gediminas, 2016. "Bankruptcy Prediction Model for Private Limited Companies of Lithuania," Ekonomika (Economics), Sciendo, vol. 95(1), pages 134-152, January.
    2. Kumar, Rahul & Deb, Soumya Guha & Mukherjee, Shubhadeep, 2020. "Do words reveal the latent truth? Identifying communication patterns of corporate losers," Journal of Behavioral and Experimental Finance, Elsevier, vol. 26(C).
    3. Duc Hong Vo & Binh Ninh Vo Pham & Chi Minh Ho & Michael McAleer, 2019. "Corporate Financial Distress of Industry Level Listings in Vietnam," JRFM, MDPI, vol. 12(4), pages 1-17, September.
    4. Lenka Papíková & Mário Papík, 2022. "Effects of classification, feature selection, and resampling methods on bankruptcy prediction of small and medium‐sized enterprises," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 29(4), pages 254-281, October.
    5. Vo, D.H. & Pham, B.V.-N. & Pham, T.V.-T. & McAleer, M.J., 2019. "Corporate Financial Distress of Industry Level Listings in an Emerging Market," Econometric Institute Research Papers EI2019-15, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    6. Dimitras, A. I. & Zanakis, S. H. & Zopounidis, C., 1996. "A survey of business failures with an emphasis on prediction methods and industrial applications," European Journal of Operational Research, Elsevier, vol. 90(3), pages 487-513, May.
    7. Katarina Valaskova & Pavol Durana & Peter Adamko & Jaroslav Jaros, 2020. "Financial Compass for Slovak Enterprises: Modeling Economic Stability of Agricultural Entities," JRFM, MDPI, vol. 13(5), pages 1-16, May.
    8. Proho Mahir, 2023. "Going concern assessment: a literature review," Journal of Forensic Accounting Profession, Sciendo, vol. 3(2), pages 48-62, December.
    9. Mateusz Heba & Marcin Chlebus, 2020. "Impact of using industry benchmark financial ratios on performance of bankruptcy prediction logistic regression model," Working Papers 2020-30, Faculty of Economic Sciences, University of Warsaw.
    10. Katarina Valaskova & Dominika Gajdosikova & Jaroslav Belas, 2023. "Bankruptcy prediction in the post-pandemic period: A case study of Visegrad Group countries," Oeconomia Copernicana, Institute of Economic Research, vol. 14(1), pages 253-293, March.
    11. Lance Moir & Sudi Sudarsanam, 2007. "Determinants of financial covenants and pricing of debt in private debt contracts: the UK evidence," Accounting and Business Research, Taylor & Francis Journals, vol. 37(2), pages 151-166.
    12. Nawaf Almaskati & Ron Bird & Yue Lu & Danny Leung, 2019. "The Role of Corporate Governance and Estimation Methods in Predicting Bankruptcy," Working Papers in Economics 19/16, University of Waikato.
    13. Elsayed, Mohamed & Elshandidy, Tamer, 2020. "Do narrative-related disclosures predict corporate failure? Evidence from UK non-financial publicly quoted firms," International Review of Financial Analysis, Elsevier, vol. 71(C).
    14. Mohammad Mahdi Mousavi & Jamal Ouenniche, 2018. "Multi-criteria ranking of corporate distress prediction models: empirical evaluation and methodological contributions," Annals of Operations Research, Springer, vol. 271(2), pages 853-886, December.
    15. Andrzej Geise & Magdalena Kuczmarska & Jarosław Pawlowski, 2021. "Corporate Failure Prediction of Construction Companies in Poland: Evidence from Logit Model," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 99-116.
    16. Tijana Matejić & Snežana Knežević & Vesna Bogojević Arsić & Tijana Obradović & Stefan Milojević & Miljan Adamović & Aleksandra Mitrović & Marko Milašinović & Dragoljub Simonović & Goran Milošević & Ma, 2022. "Assessing the Impact of the COVID-19 Crisis on Hotel Industry Bankruptcy Risk through Novel Forecasting Models," Sustainability, MDPI, vol. 14(8), pages 1-44, April.
    17. Yossavadee Pugpaichit & Phassawan Suntrauk, 2014. "The Prediction Model of Bankruptcy: Evidence from the Small and Medium Enterprises (SMEs) in Thailand," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 3(10), pages 788-796.
    18. Antonio Davila & George Foster & Xiaobin He & Carlos Shimizu, 2015. "The rise and fall of startups: Creation and destruction of revenue and jobs by young companies," Australian Journal of Management, Australian School of Business, vol. 40(1), pages 6-35, February.
    19. Li, Chunyu & Lou, Chenxin & Luo, Dan & Xing, Kai, 2021. "Chinese corporate distress prediction using LASSO: The role of earnings management," International Review of Financial Analysis, Elsevier, vol. 76(C).
    20. Pavol Durana & Lucia Michalkova & Andrej Privara & Josef Marousek & Milos Tumpach, 2021. "Does the life cycle affect earnings management and bankruptcy?," Oeconomia Copernicana, Institute of Economic Research, vol. 12(2), pages 425-461, June.

    More about this item

    Keywords

    crisis resilience; crisis management; housing and utilities; crisis adaptation; stakeholder approach;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:url:izvest:v:25:y:2024:i:1:p:131-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Blaginin (email available below). General contact details of provider: https://edirc.repec.org/data/usueeru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.