REASSESSING CORPORATE FINANCIAL STABILITY IN THE CONTEXT OF SUSTAINABLE ECONOMIC GROWTH: A COMPARATIVE EVALUATION OF ASSESSMENT METHODS AND THEIR APPLICABILITY TO TELECOMMUNICATIONS COMPANIES
DOI:
https://doi.org/10.5281/zenodo.23233463Abstract
In the context of sustainable economic growth, corporate financial stability requires a broader assessment than reliance solely on balance-sheet ratios at the reporting date. It also reflects a company’s ability to service debt from operating cash flows, finance growth while maintaining a sustainable level of leverage, and remain resilient to macroeconomic fluctuations. This article evaluates the principal methods of financial stability assessment against these requirements, with particular attention to capital-intensive telecommunications companies. Based on a structured review of studies published primarily between 2007 and 2024 and a criteriabased comparative evaluation of eight groups of methods against six criteria, the study identifies opportunities for further methodological development. Ratio analysis, absolute indicators, discriminant models, and rating models used in the Commonwealth of Independent States (CIS) predominantly rely on static measures and provide relatively limited coverage of cash flows, sector-specific characteristics, and currency and interestrate risks; some also employ weights calibrated using data from other economies. Statistical and machinelearning-based financial distress models, in turn, depend on sufficiently comprehensive historical datasets on corporate financial distress and failure events, the availability of which can be further developed in the context of Uzbekistan. Cash-flow and debt-service approaches and composite index methods demonstrate comparatively broader alignment with the selected assessment criteria, although their integrated application remains relatively limited. The article proposes an author-defined concept of financial stability in the context of sustainable economic growth and a six-block indicator framework encompassing capital structure, liquidity, cash flow and debt service, profitability, sector-specific operational efficiency, and macroeconomic risk sensitivity. The proposed framework provides a methodological basis for constructing an integral financial stability index for telecommunications companies, including Uztelecom JSC.Keywords
financial stability, sustainable economic growth, financial analysis, debt-service capacity, financial distress, composite index, telecommunications, UzbekistanReferences
Oʻzbekiston Respublikasi Prezidentining 05.10.2020-yildagi “Raqamli Oʻzbekiston — 2030” strategiyasini tasdiqlash va uni samarali amalga oshirish chora-tadbirlari toʻgʻrisidagi PF-6079-sonli Farmoni, https://lex. uz/docs/-5030957
Alaka, H. A., Oyedele, L. O., Owolabi, H. A., Kumar, V., Ajayi, S. O., Akinade, O. O., & Bilal, M. (2018). Systematic review of bankruptcy prediction models: Towards a framework for tool selection / H.A. Alaka, L.O. Oyedele, H.A. Owolabi, V. Kumar, S.O. Ajayi, O.O. Akinade, M. Bilal. Expert Systems with Applications.
– P. 164–184.
Altman, E. I. (2018). Applications of distress prediction models: What have we learned after 50 years from the Z-score models? / E.I. Altman. International Journal of Financial Studies, 6(3).
Altman, E. I., Iwanicz-Drozdowska, M., Laitinen, E. K., & Suvas, A. (2017). Financial distress prediction in an international context: A review and empirical analysis of Altman’s Z-score model / E.I. Altman, M. Iwanicz-Drozdowska, E.K. Laitinen, A. Suvas. Journal of International Financial Management & Accounting, 28(2), 131–171.
Barboza, F., Kimura, H., & Altman, E. (2017). Machine learning models and bankruptcy prediction / F. Barboza, H. Kimura, E. Altman. Expert Systems with Applications, 83, 405–417.
Bauetdinov, M. (2023). Ensuring financial stability of economic entities in the Republic of Uzbekistan / M. Bauetdinov. Economics and Innovative Technologies, 11(5). https://doi.org/10.55439/EIT/vol11_iss5/a2
Bellovary, J. L., Giacomino, D. E., & Akers, M. D. (2007). A review of bankruptcy prediction studies: 1930 to present / J.L. Bellovary, D.E. Giacomino, M.D. Akers. Journal of Financial Education, 33, 1–42.
Burkhanov, A. U., Kurbonbekova, M. T., Usmonov, B., & Nizomiddinov, J. Z. (2024). Assessment of the financial sustainability of enterprises: The case of Uzbekistan / A.U. Burkhanov, M.T. Kurbonbekova, B. Usmonov, J.Z. Nizomiddinov. [Book title to be verified], 33.
– DOI: 10.1108/S1877-63612024000033B027.
Campbell, J. Y., Hilscher, J., & Szilagyi, J. (2008). In search of distress risk / J.Y. Campbell, J. Hilscher, J. Szilagyi. The Journal of Finance, 63(6), 2899–2939.
Fauzi, R. A., Achsani, N. A., Andati, T., & Anggaraeni, L. (2022). Pengaruh struktur modal terhadap kinerja perusahaan telekomunikasi dunia [The effect of capital structure on the performance of world telecommunications companies] / R.A. Fauzi, N.A. Achsani, T. Andati, L. Anggaraeni. Jurnal Aplikasi Bisnis dan Manajemen, 8(2). https://doi.org/10.17358/jabm.8.2.470
Frank, M. Z., & Goyal, V. K. (2009). Capital structure decisions: Which factors are reliably important? / M.Z. Frank, V.K. Goyal. Financial Management, 38(1), 1–37.
Graham, J. R., & Leary, M. T. (2011). A review of empirical capital structure research and directions for the future / J.R. Graham, M.T. Leary. Annual Review of Financial Economics, 3, 309–345.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 ECONOSCITECH INTEGRATION
This work is licensed under a Creative Commons Attribution 4.0 International License.