Predicting bankruptcy in Czech Republic: The role of data transformation

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F12%3APU99858" target="_blank" >RIV/00216305:26510/12:PU99858 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
angličtina
Original language name
Predicting bankruptcy in Czech Republic: The role of data transformation
Original language description
The traditional bankruptcy models and their predictors cannot be used to predict bankruptcy in the Czech Republic as they have been intended for different business environments reflecting their specific features. Moreover, there are studies (Grice, Dugan, 2001; Wu, Gaunt, Gray, 2010; Niemann et al. 2008) showing that the precision of a bankruptcy model is significantly degraded if used in a field, period, and/or business environment different from that in which the learning data were observed. Buildinga new model is associated with pitfalls resulting from the character of bankruptcy data, e. g. the non-normality. In general, the fulfilment of method assumptions (e.g. normality) is one of the factors determining the quality of the rating model (Niemannet al, 2008). The discriminant analysis, as the most frequently used classification method used for bankruptcy prediction purposes, is based on the assumption of normality (Aziz, Dar, 2006). In praxis, financial data in the form of finan
Czech name
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Czech description
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Publication year
2012
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
International Conference "Trends in Economics and Management for the 21st Century"
ISBN
978-80-214-4581-9
ISSN
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e-ISSN
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Number of pages
8
Pages from-to
1-9
Publisher name
Neuveden
Place of publication
Brno
Event location
Brno
Event date
Sep 20, 2012
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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