The Role of Apparent Signs of Financial Distress in Test Samples and Verification Samples of Bankrupt Models

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F18%3A39913439" target="_blank" >RIV/00216275:25410/18:39913439 - isvavai.cz</a>

Výsledek na webu

<a href="https://is.muni.cz/do/econ/sborniky/2018/Proceedings_finalni_verze_September_3.pdf" target="_blank" >https://is.muni.cz/do/econ/sborniky/2018/Proceedings_finalni_verze_September_3.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

The Role of Apparent Signs of Financial Distress in Test Samples and Verification Samples of Bankrupt Models

Popis výsledku v původním jazyce

Financial bankrupt models are characterized as quite accurate and above all very fast tools for quantitative evaluation of financial health of company. The creators report the accuracy of the predicted bankruptcy usually in the range of 70 to 90%. But the problem of bankruptcy models is the test sample on which the models were created. The sample affects the predictive power of these models. Usually indicated accuracy rate differs from the real predictive power of these models. The financial distress of certain businesses may be obvious even without the use of bankruptcy models. Apparent signs of financial distress may be insolvency, negative equity, VAT unreliability, negative economic result for several years in a row. Survey conducted by more than 270 companies has shown that more businesses with apparent signs of financial distress in the sample increase the reported accuracy of the bankruptcy model. The research carried out also has determined the real accuracy of selected bankruptcy models on the standard sample of Czech firms and also on a sample of companies where companies with obvious signs of financial distress were eliminated. Due to the modification of the test sample subsequently the accuracy of the selected models changed radically.

Název v anglickém jazyce

The Role of Apparent Signs of Financial Distress in Test Samples and Verification Samples of Bankrupt Models

Popis výsledku anglicky

Financial bankrupt models are characterized as quite accurate and above all very fast tools for quantitative evaluation of financial health of company. The creators report the accuracy of the predicted bankruptcy usually in the range of 70 to 90%. But the problem of bankruptcy models is the test sample on which the models were created. The sample affects the predictive power of these models. Usually indicated accuracy rate differs from the real predictive power of these models. The financial distress of certain businesses may be obvious even without the use of bankruptcy models. Apparent signs of financial distress may be insolvency, negative equity, VAT unreliability, negative economic result for several years in a row. Survey conducted by more than 270 companies has shown that more businesses with apparent signs of financial distress in the sample increase the reported accuracy of the bankruptcy model. The research carried out also has determined the real accuracy of selected bankruptcy models on the standard sample of Czech firms and also on a sample of companies where companies with obvious signs of financial distress were eliminated. Due to the modification of the test sample subsequently the accuracy of the selected models changed radically.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název statě ve sborníku

European Financial Systems 2018 : Proceedings of the 15th International Scientific Conference

ISBN

978-80-210-8980-8

ISSN

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e-ISSN

neuvedeno

Počet stran výsledku

7

Strana od-do

341-347

Název nakladatele

Masarykova univerzita

Místo vydání

Brno

Místo konání akce

Brno

Datum konání akce

25. 6. 2018

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000462948800044