Assessment of bankruptcy risks in Czech companies using regression analysis

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F21%3A63529318" target="_blank" >RIV/70883521:28120/21:63529318 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.businessperspectives.org/index.php/journals/problems-and-perspectives-in-management/issue-386/assessment-of-bankruptcy-risks-in-czech-companies-using-regression-analysis" target="_blank" >https://www.businessperspectives.org/index.php/journals/problems-and-perspectives-in-management/issue-386/assessment-of-bankruptcy-risks-in-czech-companies-using-regression-analysis</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Assessment of bankruptcy risks in Czech companies using regression analysis

Popis výsledku v původním jazyce

Bankruptcy is an important topic in academic research and practice. It is a burning issue worldwide in the current COVID-19 situation. The aim of this study is to examine the financial risks of Czech companies. By employing the stepwise regression technique to estimate the financial risks, the p-values of all selected 15 financial ratios (explanatory variables) were calculated. If the p-value of the variable is more than the level of significance, the particular variable is removed from the model and another regression model is calculated. The findings from the stepwise regression revealed that return on capital, current ratio, net working capital turnover rate, and current assets turnover rate have a positive influence on company’s financial health. On the contrary, return on capital employed, asset turnover rate, inventory turnover rate, fixed assets turnover rate, and debt to equity ratio negatively impact the company’s financial health. The findings of this study will be fruitful for managers, policymakers, and investors of the companies to estimate and assess financial risks.

Název v anglickém jazyce

Assessment of bankruptcy risks in Czech companies using regression analysis

Popis výsledku anglicky

Bankruptcy is an important topic in academic research and practice. It is a burning issue worldwide in the current COVID-19 situation. The aim of this study is to examine the financial risks of Czech companies. By employing the stepwise regression technique to estimate the financial risks, the p-values of all selected 15 financial ratios (explanatory variables) were calculated. If the p-value of the variable is more than the level of significance, the particular variable is removed from the model and another regression model is calculated. The findings from the stepwise regression revealed that return on capital, current ratio, net working capital turnover rate, and current assets turnover rate have a positive influence on company’s financial health. On the contrary, return on capital employed, asset turnover rate, inventory turnover rate, fixed assets turnover rate, and debt to equity ratio negatively impact the company’s financial health. The findings of this study will be fruitful for managers, policymakers, and investors of the companies to estimate and assess financial risks.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

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OECD FORD obor

50204 - Business and management

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2021

Kód důvěrnosti údajů

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

Název periodika

Problems and Perspectives in Management

ISSN

1727-7051

e-ISSN

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Svazek periodika

19

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

UA - Ukrajina

Počet stran výsledku

10

Strana od-do

46-55

Kód UT WoS článku

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EID výsledku v databázi Scopus

2-s2.0-85114307475