The potential of dynamic indicator in development of the bankruptcy prediction models: the case of construction companies

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F17%3APU122996" target="_blank" >RIV/00216305:26510/17:PU122996 - isvavai.cz</a>

Result on the web

<a href="https://acta.mendelu.cz/65/2/0641/" target="_blank" >https://acta.mendelu.cz/65/2/0641/</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.11118/actaun201765020641" target="_blank" >10.11118/actaun201765020641</a>

Result language

angličtina

Original language name

The potential of dynamic indicator in development of the bankruptcy prediction models: the case of construction companies

Original language description

The current development of bankruptcy models usually goes in the direction of testing different classification algorithms, while the potential hidden in financial indicators is given less attention. Their analysis is often only restricted to the comparison between their respective statuses in bankrupt and healthy companies, while the dynamics of the indicators, i.e. the change in their values in time, is not paid much attention. The aim or our research is to analyse partial potential of financial ratios for predicting bankruptcy. Twenty‑eight indicators were examined in a sample of 1,355 construction companies operating in the Czech Republic, as well as their development over the past five periods. A non‑parametric chi‑square test was used to evaluate the significance of predictors. The variables were categorised for the application of the test. Our research confirmed the assumption as to the importance of using the indicators in dynamic (change) form. Indicators that are significant only in their change form were identified. Moreover, the use of the dynamic form of the indicators can increase the significance of the bankruptcy model. This was tested by using the stepwise version of linear discrimination analysis.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2017

Confidentiality

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

Name of the periodical

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis

ISSN

1211-8516

e-ISSN

2464-8310

Volume of the periodical

65

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

12

Pages from-to

641-652

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85018442294