| Abstract [eng] |
Analysis of Companies Insolvency Problems SUMMARY 74 pages, 109 833 characters, 11 pictures, 43 references The goal of the master's thesis is to analyze the problems of corporate insolvency. Seeking to achieve the goal set, the analysis of scientific publications of Lithuanian and foreign authors and legal documents in respect of the aspect of insolvency was performed. During this analysis the definition of insolvency and the legal aspects of insolvency were clarified and a theoretical model for the analysis of insolvency problems was developed. According to the theoretical model of insolvency analysis, the interview survey of experts and the qualitative questionnaire survey of overdue companies was conducted. The surveys revealed that short-term insolvency problems may be caused not only by the problems of an insolvent company, because, in the opinion of 52.2% of companies that are overdue for up to 30 days after the due date, the main reason of late payments is the inefficiency of the creditor’s administration. When assessing long-term insolvency problems, it was found that companies that experience insolvency problems and are over 91 day overdue face two main problems: 50% of overdue companies indicated customer delays in payment and 38.1% of overdue companies indicated the consequences of the Covid-19 pandemic. Having evaluated the results of the survey of experts, it may be concluded that experts unanimously agree that after the first wave of the Covid-19 pandemic they noticed the impact of the pandemic on the solvency of companies, which was manifested by an increase in the number of insolvent companies. The research data obtained during analysis can be useful for the business activities of companies because the proposals provide insolvency solutions both for creditors and insolvent companies. The main suggestions for creditors include the evaluation of borrowing companies before providing deferred payments and an accurate and a clearly structured credit monitoring procedure after completion of sales. In the case of an insolvent company, we suggest that bankruptcy forecasting, risk identification and SWOT and PEST analyzes should be performed and management plans for all identified risks should be drawn up. |
