Dependence of Company Size on Factors Influencing Bankruptcy

Kód výsledku v 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>

Nalezeny alternativní kódy

RIV/00216224:14560/20:00116790

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

Dependence of Company Size on Factors Influencing Bankruptcy

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Dependence of Company Size on Factors Influencing Bankruptcy

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2021

Kód důvěrnosti údajů

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

Název statě ve sborníku

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

ISBN

—

ISSN

2261-2424

e-ISSN

2261-2424

Počet stran výsledku

11

Strana od-do

—

Název nakladatele

University of Žilina

Místo vydání

Žilina

Místo konání akce

Rájecké Teplice

Datum konání akce

21. 10. 2020

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

—