Publication detail

Are the bankruptcy predictors specific for a given time or branch? The evidence from the czech manufacturing and construction companies.

KARAS, M. REŽŇÁKOVÁ, M.

Original Title

Are the bankruptcy predictors specific for a given time or branch? The evidence from the czech manufacturing and construction companies.

Type

conference paper

Language

English

Original Abstract

Bankruptcy is still an up to date topic, as still many companies go bankrupt. Many scientific efforts have been dedicated to creating a more accurate model by to analyzing different sets of predictors (variables of the model) or a different set of methods. Previous work showed that these models are less effective in application in alternative branch or time. In this paper we test a smof several ratios used in bankruptcy prediction models on a large sample of Czech companies from two branches – manufacturing and construction. We found that the predictor’s significance varies considerably between the analyzed branches. In other word we found that some predictors are specific for a given branch. In addition, we found only one predictor significant in both branches for a given moments prior bankruptcy. The results suggest that a different or modified set of predictors should be used for predicting bankruptcy in alternative branch.

Keywords

bankruptcy prediction models, financial ratios, model robustness, manufacturing, construction

Authors

KARAS, M.; REŽŇÁKOVÁ, M.

RIV year

2015

Released

23. 4. 2015

Location

Zlín, Česká republika

ISBN

978-80-7454-482-8

Book

Proceedings of the 7th International Scientific Conference: FINANCE AND PERFORMANCE OF FIRMS IN SCIENCE,EDUCATION AND PRACTICE

Pages from

571

Pages to

583

Pages count

13

URL

http://www.ufu.utb.cz/konference/sbornik2015.pdf

BibTex

@inproceedings{BUT118187,
  author="Michal {Karas} and Mária {Režňáková}",
  title="Are the bankruptcy predictors specific for a given time or branch? The evidence from the czech manufacturing and construction companies.",
  booktitle="Proceedings of the 7th International Scientific Conference: FINANCE AND PERFORMANCE OF FIRMS IN SCIENCE,EDUCATION AND PRACTICE",
  year="2015",
  pages="571--583",
  address="Zlín, Česká republika",
  isbn="978-80-7454-482-8",
  url="http://www.ufu.utb.cz/konference/sbornik2015.pdf"
}