Discrepancy between the default and financial distress measured by bankruptcy models
| Autor: | Lucie Rudolfová, Tatiana Škerlíková |
|---|---|
| Rok vydání: | 2014 |
| Předmět: |
Marketing
Organizational Behavior and Human Resource Management Economics and Econometrics Actuarial science Insolvency commencement of insolvency proceeding Strategy and Management Financial market Sample (statistics) lcsh:Business financial distress bankruptcy models and insolvency law Bankruptcy Financial distress Business insolvency petition Business and International Management lcsh:HF5001-6182 Finance |
| Zdroj: | Journal of Eastern European and Central Asian Research, Vol 1, Iss 1 (2014) |
| ISSN: | 2328-8280 2328-8272 |
| DOI: | 10.15549/jeecar.v1i1.43 |
| Popis: | This paper analyzes the discrepancy between the year when a company’s financial problems begin to be measured by bankruptcy models and the year of its default, regardless of the solution (bankruptcy or reorganization). The sample of 50 companies (not traded on financial markets, chosen by turnover, with data available) has been chosen from the list of companies which underwent bankruptcy proceedings in the period 1st January 2008 – 31st August 2013. The timing of the default has been compared to the beginning of financial distress according to the chosen models and the ability of the models to predict the default has been examined. The main objective of this study is to determine how long these not traded companies postpone filling. Our objective is to find out if the companies commence insolvency proceedings in accordance with their impaired financial situation measured by the standard formulas for predicting bankruptcy or if there is any delay. We have found out that companies defer commencement of insolvency proceedings measured by bankruptcy models at least for 2 years. Moreover we conclude that even debtors are not successful with their insolvency petition at their first attempt. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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