Could the Coefficients Re-Estimation Solve the Industry or Time Specific Issues?

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F17%3APU124413" target="_blank" >RIV/00216305:26510/17:PU124413 - isvavai.cz</a>

Result on the web

<a href="http://www.iaras.org/iaras/home/caijems/could-the-coefficients-re-estimation-solve-the-industry-or-time-specific-issues" target="_blank" >http://www.iaras.org/iaras/home/caijems/could-the-coefficients-re-estimation-solve-the-industry-or-time-specific-issues</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Could the Coefficients Re-Estimation Solve the Industry or Time Specific Issues?

Original language description

The aim of this paper is to examine discrimination performance of three bankruptcy prediction models in environments and periods different from the ones utilized by deriving the models. We compared selected models’ accuracy in the original setting and present conditions. Secondary aim was to examine a way of possible increasing of the discrimination performance of models by the recalculation of the classification functions. Discrimination performance of the models and financial ratios was tested on companies operating in manufacturing business. Results conclusively demonstrate that the discrimination accuracy of bankruptcy models deteriorates significantly in different environments. The classification function of each model was recalculated using the data from Czech manufacturing companies. For the adjustment of models’ coefficients the same methods, as used originally by theirs authors, were applied, i.e. the probit method, the linear discrimination analysis and the logit method. The results shown, that the re-estimation of model coefficient could lead to its higher classification accuracy in alternative conditions. We can dedicate that recalculating of the classification rules is one of the ways to increase discrimination performance of the bankruptcy prediction models in different environment.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

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

International Journal of Economics and Management Systems

ISSN

2367-8925

e-ISSN

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Volume of the periodical

2017

Issue of the periodical within the volume

2

Country of publishing house

CY - CYPRUS

Number of pages

8

Pages from-to

206-213

UT code for WoS article

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EID of the result in the Scopus database

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