Validating the reliability of predictive models for the companies in the Slovak creative industry
Validating the reliability of predictive models for the companies in the Slovak creative industry

Summary/Abstract: Globalization of business environment has brought new challenges and trends. The importance of human capital has been growing especially since the 1990s when the Creative Industry was recognized as a full-fledged component of the national economy. There are a number of models available to analyse the financial health of the companies operating in the Creative Industry. The authors first focused on Acts No. 513/1991 Coll. and 7/2005 of the Commercial Code, as amended, which define the financial health of a company. After applying Altman Z-Score, IN05 and Creditworthiness Index, Quick Test and Binkert and Taffler models, it follows from the results that Quick Test shows the highest level of agreement with the legislative definition of a non-prosperous company. Therefore, the authors decided to analyse this predictive model further. The results of their study show that, while very reliable for the category of non-prosperous companies, the model does not achieve sufficient reliability for other categories, the average/grey zone in particular. Based on the results of the study, the authors conclude that a new predictive model to assess a company’s financial health is necessary

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