Long-term Predictive Ability of Bankruptcy Models in the Czech Republic: Evidence from 2007-2012
| Autor: | Ondřej Machek |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2014 |
| Předmět: |
Czech
Solvency Actuarial science Strategy and Management IN05 lcsh:Business language.human_language Term (time) Altman Z’-score Altman Z-score Kralicek quick test Bankruptcy Management of Technology and Innovation Taffler model Credibility Bankruptcy prediction language Economics Financial analysis Business and International Management lcsh:HF5001-6182 bankruptcy prediction |
| Zdroj: | Central European Business Review, Vol 3, Iss 2, Pp 14-17 (2014) |
| ISSN: | 1805-4862 1805-4854 |
| Popis: | Bankruptcy models are a common tool of financial analysis to predict the financial distress of companies. However, in the recent years, the instability and risk of the overall economic environment have underlined the need for accurate tools to predict bankruptcy and assess the overall performance of companies. In this article, we analyze the ex-ante predictive ability of selected bankruptcy and solvency models commonly used in financial analysis: Kralicek quick test, Taffler model, the IN99 and IN05 indexes, and Altman Z'-score models in the case of Czech companies from 2007 to 2012. We determined the percentage of cases when these models correctly predicted failures of companies up to five years in advance, and found that the IN05 and IN99 credibility indexes provided the best results, as well as the Altman Z'-score model. However, the predictive ability of the Taffler model and Kralicek quicktest has only been limited. |
| Databáze: | OpenAIRE |
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