PREDICTION CAPABILITIES OF BANKRUPTCY MODELS IN A DIFFERENT ENVIRONMENT: AN EXAMPLE OF THE ALTMAN MODEL UNDER THE CONDITIONS IN THE VISEGRAD GROUP COUNTRIES

• Authors: Režňáková Mária , Michal Karas
• Languages of publication: EN

Abstracts

EN

This paper presents the results of research into the discrimination capability of the Altman bankruptcy model. The authors are contributing in this way to discussion of the possible transferability of models that have been created in a different environment or a different time period. Efforts at model transfer are motivated by an assumption to obtain the same or similar discrimination accuracy for the given model as that declared by its creators. The tests performed have clearly shown that the discrimination accuracy of a model falls significantly when it is used in a different environment. This led in turn to an investigation of ways in which the discrimination capability of a model may be increased by means of the determination of new weightings for model variables and grey-zone boundaries. The accuracy of the original models was not attained, although an increase was seen in the discrimination accuracy of these models.

Keywords

EN

ALTMAN BANKRUPTCY MODEL; TRANSFERABILITY; LINEAR DISCRIMINATION ANALYSIS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2015
• Volume: 63
• Issue: 6
• Pages: 617 – 633

Contributors

author

Režňáková Mária

• Brno University of Technology, Faculty of Business and Management, Department of Finance, Kolejní 2906/4, 612 00 Brno, Czech Republic

author

Michal Karas