Publication detail

Can the same indicators serve for the prediction of bankruptcy in a different environment?

KARAS, M. REŽŇÁKOVÁ, M.

Original Title

Can the same indicators serve for the prediction of bankruptcy in a different environment?

Type

conference paper

Language

English

Original Abstract

This paper presents the results of research into the prediction capability of financial proportional indicators on companies operating in different environments. The subject of the research are indicators used in the Z-score model which is considered a model with good prediction capability by many contemporary authors. Our research has shown that the prediction capability of this model is lower than that declared by the author. This finding led us to an investigation of the prediction capability of individual model variables in an attempt to determine whether the lower prediction accuracy of the model may be influenced by the variables used. The research was conducted on the basis of data on companies in the manufacturing industry in Visegrad Four countries for the years 2006 to 2012 obtained from the AMADEUS database. The results demonstrated the differing significance of variables in the individual countries which indicates the necessity of creating original models for each country.

Keywords

Z-score, Altman model, bankruptcy prediction, financial ratios, corporate failure

Authors

KARAS, M.; REŽŇÁKOVÁ, M.

RIV year

2014

Released

22. 11. 2014

ISBN

978-80-248-3631-7

Book

Managing and Modelling of Financial Risks 7th International Scientific Conference, PROCEEDINGS, (Part II.)

Pages from

335

Pages to

343

Pages count

9

BibTex

@inproceedings{BUT110703,
  author="Michal {Karas} and Mária {Režňáková}",
  title="Can the same indicators serve for the prediction of bankruptcy in a different environment?",
  booktitle="Managing and Modelling of Financial Risks 7th International Scientific Conference, PROCEEDINGS, (Part II.)",
  year="2014",
  pages="335--343",
  isbn="978-80-248-3631-7"
}