Practical application of the CCB model in Czechia

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62690094%3A18450%2F21%3A50020331" target="_blank" >RIV/62690094:18450/21:50020331 - isvavai.cz</a>

Result on the web

<a href="https://www.efri.uniri.hr/upload/zbornik%202%202021/02-Halek-2021-2.pdf" target="_blank" >https://www.efri.uniri.hr/upload/zbornik%202%202021/02-Halek-2021-2.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18045/zbefri.2021.2.299" target="_blank" >10.18045/zbefri.2021.2.299</a>

Result language

angličtina

Original language name

Practical application of the CCB model in Czechia

Original language description

This research aimed to present a new bankruptcy prediction model and apply this original prediction method in practice. The Come Clean Bankruptcy (or CCB) model uses relevant financial indicators and ratios to detect the signs of impending financial distress in time so that the management can take appropriate measures to avoid it. The model was applied to the data reported by 199 entities operating in the textile/clothing industry in the Czech Republic. Analyzing data reported for the previous seven years enabled us to predict which companies are more likely to end in a difficult financial situation. Afterward, comparing these predictions with the actual development of those companies in 2013-2020 serves to verify the efficacy and usability of the model to corporate reality. The research has shown that companies that went bankrupt in the analyzed period represented only a fraction of the data set (roughly 4.5%). Despite the small number of financial failures occurring during the analyzed period, the CCB model could detect impending bankruptcy in one-third of the cases.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2021

Confidentiality

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

Name of the periodical

ZBORNIK RADOVA EKONOMSKOG FAKULTETA U RIJECI-PROCEEDINGS OF RIJEKA FACULTY OF ECONOMICS

ISSN

1331-8004

e-ISSN

1846-7520

Volume of the periodical

39

Issue of the periodical within the volume

2

Country of publishing house

HR - CROATIA

Number of pages

25

Pages from-to

299-323

UT code for WoS article

000739863700003

EID of the result in the Scopus database

2-s2.0-85132562415