Prediction of financial health of business entities in transition economies
Prediction of financial health of business entities in transition economies

Author(s): Tomáš Klieštik, Jana Klieštiková, Mária Kováčová, Lucia Svabova, Katarína Valášková, Marek Vochozka, Judit Oláh
Subject(s): Economy, National Economy, Supranational / Global Economy, Financial Markets
Published by: Addleton Academic Publishers
Keywords: transition economies; corporate financial health prediction; bankruptcy; small enterprises; medium-sized enterprises; international bankruptcy law; European bankruptcy law;
Summary/Abstract: The topic of discussion on the suitability of applying foreign financial health prediction models is whether the model formed on the basis of specific data characterizing businesses in one country can successfully be used to predict the financial situation of businesses in other countries. In the authors’ opinion, there are many limitations and differences not only between different countries but also between different sectors within a single country as the models change over the course of time, i.e., in a sense, old prediction models are no longer able to provide a quality prediction of the upcoming default of the business.The topic of discussion on the suitability of applying foreign financial health prediction models is whether the model formed on the basis of specific data characterizing businesses in one country can successfully be used to predict the financial situation of businesses in other countries. In the authors’ opinion, there are many limitations and differences not only between different countries but also between different sectors within a single country as the models change over the course of time, i.e., in a sense, old prediction models are no longer able to provide a quality prediction of the upcoming default of the business.

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