Bankruptcy Model IN05 and Private Slovak Civil Engineering Companies
Bankruptcy Model IN05 and Private Slovak Civil Engineering Companies

Author(s): Mária Bohdalová, Natália Klempaiová
Subject(s): National Economy, Business Economy / Management, Transport / Logistics
Published by: Masarykova univerzita nakladatelství
Keywords: Index IN05; bankruptcy model; logistic regression;
Summary/Abstract: The aim of the paper is to analyze bankruptcy model IN05 to determine its usability for private civil engineering companies in Slovakia. The analysis has been carried out using a sample of companies obtained from a Slovak database called FinStat. In this paper, we have analyzed data from a static point of view when we have used one year data, and from a dynamic point of view when we have analyzed samples of companies that have been bankrupt for the last 4 years. The reporting ability of the selected indicator IN05 is judged by the number of correct and incorrect predictions. We have found that the IN05 index is an appropriate model, the validity of which has been verified by logistic regression. We have found out the predictive power of the IN05 model is not reduced unless we consider the EBIT/interest expense and current assets/shortterm liabilities indicators. We have found that the index IN05 is a reliable model for civil engineering industry in Slovakia.

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