ACCURACY OF MODELS PREDICTING CORPORATE BANKRUPTCY IN A SELECTED INDUSTRY BRANCH

• Authors: Dagmar Čámská
• Languages of publication: EN

Abstracts

EN

The paper's main aim is an accuracy verification of dozens models predicting financial distress. The evaluated models were created in the past in developed countries and especially in transition economies. High probability of bankruptcy does not affect only an ailing enterprise itself but it also influences other business related entities or counterparties and therefore the results provided by models predicting financial distress have their serious usage as scoring models. Models predicting financial distress help the decision making process by predicting future development of selected business entities. Research hypotheses are based on the idea that already existing models predicting financial distress still have enough explanatory power and accuracy for decision making and there is no need for the creation of a new one. The research should answer the question which models should be recommended nowadays the most for practical use. The paper uses for the verification tools such as Type I Error, Type II Error, ROC Curves and related AuROC coefficients.

Keywords

EN

FINANCIAL DISTRESS; BANKRUPTCY MODELS; CZECH REPUBLIC; CORPORATE BANKRUPTCY

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2016
• Volume: 64
• Issue: 4
• Pages: 353 – 366

Contributors

author

Dagmar Čámská

• Czech Technical University in Prague, Masaryk Institute of Advanced Studies, Department of Management Studies, Kolejní 2637/2a, 160 00 Prague 6, Czech Republic