Establishment of the differentiated economic mechanism of company bankruptcy prevention as a basic element of sustainable development of rural areas

Abstract

Abstract The article considers the economic essence, gives a subordination of the concepts of “financial insolvency” and “bankruptcy” of a company, and suggests the definition based on the self-regulating financial system. A criterion matrix of interconnection and identification of the stages of financial insolvency and bankruptcy has been developed and tested, which sets the system of key financial and economic indicators as its basis. A differentiated economic mechanism is proposed to prevent the bankruptcy of agricultural companies, depending on the stage of financial insolvency and bankruptcy. The target and functional orientations are justified in the structure of the differentiated mechanism, that allow effective planning the measures of prevention of the insolvency and bankruptcy of companies in order to ensure longterm sustainable development of agricultural territories.