Predicting Financial Distress of Slovak Agricultural
Enterprises
Predicting Financial Distress of Slovak Agricultural
Enterprises
Author(s): Martin Boďa, Vladimír ÚradníčekSubject(s): Business Economy / Management, Agriculture, Financial Markets
Published by: Ekonomický ústav SAV a Prognostický ústav SAV
Keywords: G-Index; CH-Index; Altman’s Z-score; Slovak agricultural ;enterprises, financial distress; prediction accuracy;
Summary/Abstract: 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.
Journal: Ekonomický časopis
- Issue Year: 67/2019
- Issue No: 04
- Page Range: 426-452
- Page Count: 27
- Language: English