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The Success of Business Failure Prediction Using Financial Creditworthy Models

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F16%3A39902035" target="_blank" >RIV/00216275:25410/16:39902035 - isvavai.cz</a>

  • Result on the web

    <a href="http://is.muni.cz/do/econ/sborniky/2016/EFS2016-Proceedings_final_September_19_final.pdf" target="_blank" >http://is.muni.cz/do/econ/sborniky/2016/EFS2016-Proceedings_final_September_19_final.pdf</a>

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    The Success of Business Failure Prediction Using Financial Creditworthy Models

  • Original language description

    Financial creditworthy models are popular for their simplicity and fast applications. Above all, quantitative evaluation of financial health guarantees an unbiased assessment of company. On the other hand, these models do not take into account the soft factors. Probably, the most famous Czech financial models known as creditworthy are Credibility Index, Rudolf Doucha's Balance analysis, and Kralicek's Q-test. They were created for the purpose of assessing the creditworthiness usually without using statistical methods. Can they be used for prediction of business failure despite this drawback? What is their success rate? Which of these classic financial models achieves the highest accuracy? To find answers a dataset of financial statements of 92 companies in manufacturing industry was analysed. These companies went bankrupt between 2010-2014.

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

    AE - Management, administration and clerical work

  • OECD FORD branch

Result continuities

  • Project

  • Continuities

    I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Others

  • Publication year

    2016

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Article name in the collection

    European Financial Systems 2016 : proceedings of the 13th International Scientific Conference

  • ISBN

    978-80-210-8308-0

  • ISSN

  • e-ISSN

  • Number of pages

    7

  • Pages from-to

    413-419

  • Publisher name

    Masarykova univerzita

  • Place of publication

    Brno

  • Event location

    Brno

  • Event date

    Jun 27, 2016

  • Type of event by nationality

    EUR - Evropská akce

  • UT code for WoS article