Implementation of standards into predictors of financial stability

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F22%3A39919052" target="_blank" >RIV/00216275:25410/22:39919052 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.tandfonline.com/doi/full/10.1080/1331677X.2022.2053785" target="_blank" >https://www.tandfonline.com/doi/full/10.1080/1331677X.2022.2053785</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1080/1331677X.2022.2053785" target="_blank" >10.1080/1331677X.2022.2053785</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Implementation of standards into predictors of financial stability

Popis výsledku v původním jazyce

This article proposes a methodology for modifying bankruptcymodels. The authors focused on the role of partial predictors inpredicting companys bankruptcy. According to the authors, it is necessary to analyse the anomalies that occur in companies that are losing financial stability. It has been hypothesized that some anomalies in the form of extreme values may deviate the overall final value of the model to such an extent that they lead to an erroneous evaluation of the company by the bankruptcy model. As a result, companies in bankruptcy may be incorrectly classified as &apos;financially stable&apos; or, conversely, financially sound companies with certain extreme values could be mistaken for companies in bankruptcy. To verify the hypothesis, the authors analysed the probability distribution of partial predictors of the bankruptcy Model 1 on a test and verification sample of more than 1,100 companies. Limits were set to eliminate extreme values and, as a result, the accuracy of the model has been increased. The introduction of limits has increased the accuracy of the model, especially in bankruptcy prediction. For bankruptcies, the accuracy increased from 85.82% to 88.65% for the test sample and from 84.00% to 88.00% for the verification sample.

Název v anglickém jazyce

Implementation of standards into predictors of financial stability

Popis výsledku anglicky

This article proposes a methodology for modifying bankruptcymodels. The authors focused on the role of partial predictors inpredicting companys bankruptcy. According to the authors, it is necessary to analyse the anomalies that occur in companies that are losing financial stability. It has been hypothesized that some anomalies in the form of extreme values may deviate the overall final value of the model to such an extent that they lead to an erroneous evaluation of the company by the bankruptcy model. As a result, companies in bankruptcy may be incorrectly classified as &apos;financially stable&apos; or, conversely, financially sound companies with certain extreme values could be mistaken for companies in bankruptcy. To verify the hypothesis, the authors analysed the probability distribution of partial predictors of the bankruptcy Model 1 on a test and verification sample of more than 1,100 companies. Limits were set to eliminate extreme values and, as a result, the accuracy of the model has been increased. The introduction of limits has increased the accuracy of the model, especially in bankruptcy prediction. For bankruptcies, the accuracy increased from 85.82% to 88.65% for the test sample and from 84.00% to 88.00% for the verification sample.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2022

Kód důvěrnosti údajů

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

Název periodika

Economic Research-Ekonomska Istrazivanja

ISSN

1331-677X

e-ISSN

1848-9664

Svazek periodika

35

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

17

Strana od-do

6884-6900

Kód UT WoS článku

000773793400001

EID výsledku v databázi Scopus

2-s2.0-85127258361