Advancing the multifactor model of Stochastic Frontier Analysis

The concept of efficiency is important in economic science; at present, its role every sector the economy growing. Evaluating an enterprise’s makes it possible to implement a correct and profitable strategy resource allocation, which shows potential level Given annual increase number bankrupt enterprises, issue estimating enterprises relevant for both their owners managers, as well creditors. There are various methods models performance enterprises. This work has assessed industrial over period 2017‒2018. Stochastic Frontier Analysis based on stochastic model production function. classic SFA method function company, relates volume output resources consumed. At same time, uses several inputs (volumes consumed) only one parameter ‒ production. In order achieve more precise results, given been modified. allows key financial indicators be taken into consideration outputs activities studied entities assessed. result involving open sources revealed how different industry changes years. It shown that modified could used assess stability predict bankruptcy.