Statistical Verification of Selected Bankruptcy Models – Case Study
Statistical Verification of Selected Bankruptcy Models – Case Study

Summary/Abstract: Broad range of simple and complex prediction methods can be found in professional literature that less or more successfully predict a company financial position in the future. Ability to predict the company financial position is based on the interpretation of reached ex-post retrospective financial analysis results. Financial managers should know theoretical fundaments of prediction methods but also recognize specific advantages and limitations resulting from prediction methods application. Presented article is dedicated to testing of 10 prediction methods on 20 Slovak companies in agricultural sector. The sample companies consist of 10 successful and 10 not successful companies where economic added value (EVA) indicator was a criterion of company classification. Non-parametric set of mathematical – statistical tests was applied to testing of selected methods, which were applied in two cases, namely comparison of results within particular company groups and comparison of pairs of subjects within particular prediction methods. One of the results refers to possible substitution of the Ohlson model with Zmijewski model and, without effect on complex evaluation, linear correlation between selected models´ results that doesn´t allow their common application or inadequacy of the Kralicek Quick Test, and the Ohlson model application in their absolute expression.

• Details
• Contents