industry specificity

Mathematical Methods and Instrumental Means of Industrial Identification of Enterprises and Organizations by Economic Activities

Introduction. The task of sectoral identification of enterprises and organizations by type of economic activity is considered, which is understood as the following – to determine its main type of activity and industry affiliation according to the balance sheet or other financial statements of an enterprise. Theoretical analysis. Sectoral identification is required in six areas identified by the authors: checking counterparties (suppliers and contractors), checking conflicting statistics, financial analysis, bankruptcy forecasting, business valuation, and determining the stage of the life cycle. Еmpirical analysis. All necessary calculations and computer modeling were made in the special computer program named The universal cognitive analytics system “Eidos”. It was revealed that according to the balance structure, reduced to a specific type, it is possible to identify the sectoral affiliation of enterprises and organizations with a certainty of 83%, and also to determine the probability of bankruptcy with a certainty of 90%. Knowing the most characteristic balance sheet items, we can identify industry ratios for business valuation. Results. The ranges of balance sheet items characteristic of five industries: information technology and telecommunications, mining, construction, agriculture and chemical production are shown, as well as characteristic ranges of balance sheet items for insolvent and financially sustainable enterprises in the construction industry. The regression equation for estimating the value of the construction enterprises’ business is given, which can be used for rapid assessment as a method of industry coefficients.