The problem of the bankruptcy concept definition in the corporate sector

Abstract

The issue of the bankruptcy notion definition has a major importance in the context of the management practice and theory, internal planning and control of the company. The objectives of the article are to analyse the theoretical principles, highlight and systematize the most successful meanings and definitions related to the term of "bankruptcy", interpreting the economic content of such a category as "bankruptcy in the corporate sector". For this purpose, the method of analysis of the scientific literature was applied. The publications chosen as the research base were mainly selected from the Google Scholar and ResearchGate databases between 2016 and 2020. This study is one of the few researches that involves the analysis of the legal framework especially in the countries of the former Eastern bloc. The results show that the terms that are often used in the bankruptcy literature are: failure, insolvency and bankruptcy. These terms are sometimes used interchangeably, although formally each of them can be defined in a different way. At the same time, following the lexicographical analysis of the concept of bankruptcy in the sustainable development of a company, the authors proposed to visualize the correlation between bankruptcy, financial stability and sustainable development in the corporate sector.

Keywords

• bankruptcy
• failure
• insolvency
• sustainable development
• risk