PREDICTING FINANCIAL DISTRESS OF SLOVAK AGRICULTURAL ENTERPRISES

• Authors: Boďa Martin , Úradníček Vladimír
• Languages of publication: EN

Abstracts

EN

The paper focuses upon the predictive validity of Chrastinová’s CH-Index and Gurčík’s G-Index devised for predicting financial distress of Slovak agricultural enterprises and confronts them with Altman's bankruptcy formula. Its aim is to verify whether these out-dated models preserve their usefulness in newer conditions of Slovak agribusinesses and whether they may be improved by redefining the cut-off points used in separating distressed and non-distressed enterprises. Using a data sample on Slovak agricultural enterprises for the period from 2009 until 2013, it is ascertained that the G-Index with redefined cut-off points may be tentatively recommended for financial distress prediction showing a balanced trade-off between distress and non-distress prediction accuracy.

Keywords

EN

G-INDEX; CH-INDEX; ALTMAN’S Z-SCORE; SLOVAKIA; AGRICULTURAL ENTERPRISES; FINANCIAL DISTRESS; PREDICTION ACCURACY

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2019
• Volume: 67
• Issue: 4
• Pages: 426 – 452

Contributors

author

Boďa Martin

• Matej Bel University in Banská Bystrica, Faculty of Economics, Department of Quantitative Methods and Information Systems, Tajovského 10, 975 90 Banská Bystrica; Slovak Republic

author

Úradníček Vladimír