Multi-product model for assessing the effectiveness of the safe operation of enterprises

Abstract: The concept of efficiency is very important in economic science, and today it has its increasing role in each sector of the economy. The evaluation of the efficiency of the enterprise allows to carry out a faithful and advantageous resource allocation strategy, and shows its potential level. There are various methods and models for assessing the efficiency of enterprises. This paper presents an assessment of the efficiency of enterprises by the Stochastic Frontier Analysis method. The results of the work showed how the efficiency of various enterprises of same industry will change in several years. It is shown that such a model can be used to assess the financial stability and bankruptcy prediction.

Keywords: multifactor model, efficiency, stochastic method, bankruptcy, financial stability, panel data