Dependence of Company Size on Factors Influencing Bankruptcy

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21630%2F21%3A00351805" target="_blank" >RIV/68407700:21630/21:00351805 - isvavai.cz</a>

Alternative codes found

RIV/00216224:14560/20:00116790

Result on the web

<a href="https://doi.org/10.1051/shsconf/20219203028" target="_blank" >https://doi.org/10.1051/shsconf/20219203028</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1051/shsconf/20219203028" target="_blank" >10.1051/shsconf/20219203028</a>

Result language

angličtina

Original language name

Dependence of Company Size on Factors Influencing Bankruptcy

Original language description

Research background: There is extensive empirical literature on default prediction methodologies. Many authors during the last fifty years have examined several possibilities to predict default or business failure. The reviews from the last years show that the closer the similarity of businesses, the greater accuracy of bankruptcy models. Purpose of the article: The aim of this article is finding if there exist different factors that could predict bankruptcy depending on the size of the company. Our motivation is to show if there exist differences when predicting bankruptcy according the size of the company. Methods: This paper focuses on the Czech economy, specifically at small and medium sized enterprises (SMEs). It is the ongoing research about the value of several popular bankruptcy models that are often applied, namely the Altman Z-score, the Ohlson O-score, the Zmijewski’s model, the Taffler’s model, and the IN05 model. We have used logistic regression and investigated around 2 800 companies, of which 642 failed during the period 2010 – 2017. Findings & Value added: Results of the analysis confirm research hypotheses that there exist different factors which could predict bankruptcy depending on the size of the company and exploit common used financial indicators to assess the probability of bankruptcy precisely. We have found that for the segment of micro-enterprises is necessary to pay attention to liquidity and profitability. Small enterprises emphasize to leverage, liquidity and profitability while the model developed for the segment of medium-sized enterprises measures most of all leverage, liquidity and activity.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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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

Article name in the collection

The 20th International Scientific Conference Globalization and its Socio-Economic Consequences 2020

ISBN

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ISSN

2261-2424

e-ISSN

2261-2424

Number of pages

11

Pages from-to

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Publisher name

University of Žilina

Place of publication

Žilina

Event location

Rájecké Teplice

Event date

Oct 21, 2020

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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