scholarly journals Financial Distress and Bankruptcy Prediction in Conditions of Slovak Republic

2021 ◽  
Vol 92 ◽  
pp. 08017
Author(s):  
Filip Rebetak ◽  
Viera Bartosova
Keyword(s):  
Financial Distress ◽  
Prediction Models ◽  
Financial Analysis ◽  
Slovak Republic ◽  
Value Added ◽  
Theoretical Background ◽  
Bankruptcy Prediction ◽  
Important Place ◽  
Non Profit ◽  
Analysis And Synthesis

Research background: Prediction of bankruptcy has an important place in financial analysis of an organization in the globalized economy. Ever since the first publication of a paper on bankruptcy prediction in 1932, the field of bankruptcy prediction was attracting researchers and scholars internationally. Over the years, there have been a great many models conceived in many different countries, such as Altman’s Z score or Ohlson’s model for use for managers and investors to assess the financial position of a company. Globalization in last few decades has made it even more important for all stakeholders involved to know the financial shape of the company and predict the possibility of bankruptcy. Purpose of the article: We aim in this article to examine the financial distress and bankruptcy prediction models used or developed for Slovakia to provide an overview of possibilities adjusted to specific conditions of the Slovak Republic in context of globalization. We will also look at the possibility of use of these prediction models for assessing financial status of non-profit organizations in the Slovak Republic. Methods: We will use analysis and synthesis of current research and theoretical background to compare existing models and their use. Findings & Value added: We hope to contribute with this paper to the theoretical knowledge in this field by summarizing and comparing existing models used.

scholarly journals Family Businesses in Global Economy and Evaluating their Financial Health Using Bankruptcy Models

2021 ◽  
Vol 129 ◽  
pp. 03031
Author(s):  
Maria Truchlikova
Keyword(s):  
Financial Distress ◽  
Global Economy ◽  
Agricultural Sector ◽  
Prediction Models ◽  
Predictive Accuracy ◽  
Value Added ◽  
Business Environment ◽  
Bankruptcy Prediction ◽  
Family Businesses ◽  
Financial Health

Research background: Predicting and assessing financial health should be one of the most important activities for each business especially in context of turbulent business environment and global economy. The financial sustainability of family businesses has a direct and significant influence on the development and growth of the economy because they still represent the backbone of the economy and play an important role in national economies worldwide accounting. Purpose of the article: We used in this article the financial distress and bankruptcy prediction models for assessing financial status of family businesses in agricultural sector. The aim of the paper is to compare models developed by using three different methods to identify a model with the highest predictive accuracy of financial distress and assess financial health. Methods: The data was obtained from Finstat database. For assessing the financial health of selected family businesses bankruptcy models were used: Chrastinova’s CH-Index, Gurcik’s G-Index (defined for Slovak agricultural enterprises) and Altman Z-score. Findings & Value added: This article summarizes existing models and compares results of assessing financial health of family businesses using three different models.

scholarly journals Logit and Probit application for the prediction of bankruptcy in Slovak companies

Equilibrium ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 775-791 ◽  
Author(s):  
Maria Kovacova ◽  
Tomas Kliestik
Keyword(s):  
Logistic Regression ◽  
Prediction Model ◽  
Statistical Methods ◽  
Prediction Models ◽  
Slovak Republic ◽  
Relevant Literature ◽  
Value Added ◽  
Bankruptcy Prediction ◽  
Data Set ◽  
Prediction Ability

Research background: Prediction of bankruptcy is an issue of interest of various researchers and practitioners since the first study dedicated to this topic was published in 1932. Finding the suitable bankruptcy prediction model is the task for economists and analysts from all over the world. forecasting model using. Despite a large number of various models, which have been created by using different methods with the aim to achieve the best results, it is still challenging to predict bankruptcy risk, as corporations have become more global and more complex. Purpose of the article: The aim of the presented study is to construct, via an empirical study of relevant literature and application of suitable chosen mathematical statistical methods, models for bankruptcy prediction of Slovak companies and provide the comparison of overall prediction ability of the two developed models. Methods: The research was conducted on the data set of Slovak corporations covering the period of the year 2015, and two mathematical statistical methods were applied. The methods are logit and probit, which are both symmetric binary choice models, also known as conditional probability models. On the other hand, these methods show some significant differences in process of model formation, as well as in achieved results. Findings & Value added: Given the fact that mostly discriminant analysis and logistic regression are used for the construction of bankruptcy prediction models, we have focused our attention on the development bankruptcy prediction model in the Slovak Republic via logistic regression and probit. The results of the study suggest that the model based on a logit functions slightly outperforms the classification accuracy of probit model. Differences were obtained also in the detection of the most significant predictors of bankruptcy prediction in these types of models constructed in Slovak companies.

scholarly journals Prediction of Default of Small Companies in the Slovak Republic

2018 ◽  
Vol 15 (1) ◽  
pp. 88-95 ◽  
Author(s):  
Lucia Svabova ◽  
Marek Durica ◽  
Ivana Podhorska
Keyword(s):  
Discriminant Analysis ◽  
Prediction Models ◽  
Financial Analysis ◽  
Slovak Republic ◽  
Real Data ◽  
Bankruptcy Prediction ◽  
Small Companies ◽  
Multivariate Statistical ◽  
Financial Difficulties ◽  
The World

Abstract From the time of Altman and the first bankruptcy prediction models, the prediction of default of companies is in the centre of interest of many economists and scientists all over the world. For companies, early detection of the possible threat of imminent financial difficulties or even bankruptcy is a very important part of financial analysis. Over the last few years, many predictive models have been created in the world. However, it has been shown that these models are not very well transferable to the conditions of the economy of another country and their prediction or rating power in another country is lower. Therefore, it is best to create a specific predictive model in the country that takes into account the situation of companies on the basis of real data on their financial situation. This paper is focused on creating a model of failure prediction of small companies in Slovakia using a well-known and widely used method of multivariate discriminant analysis. Discriminant analysis is one of the oldest multivariate statistical methods and sometimes it is difficult to fulfil certain assumptions for data. However, its results are easily interpretable and can be used to classify a company to the group of companies with risk of financial difficulties or, on the contrary, between well-prosperous companies. Prediction model is created based on real data on Slovak enterprises and has a strong classification ability in the specific conditions of the Slovak Republic.

scholarly journals Financial Distress Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia

2021 ◽  
Vol 2 (2) ◽  
pp. 237-246
Author(s):  
Martinus Robert Hutauruk ◽  
Mansyur Mansyur ◽  
Muhammad Rinaldi ◽  
Yisar Renza Situru
Keyword(s):  
Financial Distress ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Bankruptcy Prediction ◽  
Stock Index ◽  
Risk Level ◽  
Food And Beverage ◽  
Community Information ◽  
High Level ◽  
Prediction Approach

Companies engaged in the food and beverage business have a very high chance of success in running their business, given the increasingly high level of food and beverage consumption for the community. Information based on financial ratios needs to be improved in other forms of financial analysis to ascertain the future risk level. The purpose of this study is to analyze financial distress for food and beverage sub-sector companies listed on conventional stocks and Islamic stocks on the Indonesia Stock Exchange in the period 2015-2020. Financial distress analysis uses the Altman Z-Score bankruptcy prediction approach. The results of the study indicate that companies that experience accounting losses do not necessarily experience financial distress. Companies whose shares are listed on the Sharia stock index tend to experience healthier financial conditions and do not experience financial distress. Sharia shares of food and beverage sub-sector companies on the Indonesia Stock Exchange have good resistance to financial distress. This is supported by the high and stable value of Inti Agri Resources' shares compared to the shares of other companies.

scholarly journals Triple bottom line of the CSR concept and its reporting

2021 ◽  
Vol 129 ◽  
pp. 07001
Author(s):  
Jaroslav Belas ◽  
Katarina Zvarikova
Keyword(s):  
Developing Countries ◽  
Literature Review ◽  
Value Added ◽  
Developed Countries ◽  
Theoretical Background ◽  
Three Dimensions ◽  
Bottom Line ◽  
Non Profit ◽  
To Come ◽  
Frequent Problem

Research background: The global situation is alarming. Many scholars, politicians, non-profit organizations and journalists worldwide remind of these arising problems. Sustainability seems to be the only solution, and also many companies try to do their best to contribute to this issue. Purpose of the article: CSR is considered a valuable tool in many fields – profit, stakeholders, and environmental dimensions. All these dimensions are characterized by their specifics, but it is proven that CSR positively impacts all of them. But the frequent problem is that although the companies are aware of the stakeholders´ importance, they are not able to report their activities or report them in an understanding way. Methods: Methods of the literature review is used for the theoretical background to understand the importance of three dimensions of CSR. Method of analysis is used to analyze of GRI index. Findings & Value added: Literature review proves the importance of CSR towards all three dimensions. According to analysis of the DRI index, it is evident, that not only organizations from developed countries have reported, but also organizations from developing countries had become reporting. Following the result of our analysis, we can see that 1 694 organizations from 80 countries try to come close to stakeholders and want to inform them about their activities.

scholarly journals Eliciting Weights of Significance of Criteria for a Monitoring Model of Performance of SMEs for Successful Insolvency Administrator’s Intervention

2019 ◽  
Vol 11 (20) ◽  
pp. 5667 ◽  
Author(s):  
Podviezko ◽  
Kurschus ◽  
Lapinskiene
Keyword(s):  
Major Part ◽  
Prediction Models ◽  
Value Added ◽  
Bankruptcy Prediction ◽  
Multiple Criteria ◽  
Satisfactory Level ◽  
Monitoring Model ◽  
Multiple Criteria Evaluation ◽  
Evaluation And Monitoring ◽  
The Eu

Small and medium-sized enterprises (SMEs) are accounted for as a major part of the economy of the EU in terms of part of the population employed, turnover, value-added, etc. Causes of insolvency of SMEs can be different; they are categorized in the paper. A considerable shift from resolving cases of bankruptcy with the sole aim to satisfy creditors’ rights to augmenting and enhancing liquidation and reorganization procedures evolved interest of the authors in creating efficient bankruptcy prediction models and, in particular, methodologies for evaluation and monitoring of the performance of SMEs. In the paper, we reviewed several initiatives and instruments created by the EU for supporting SMEs. The paper laid a foundation for creating a more comprehensive methodology for evaluation of the state of a firm undergoing the process of reorganization. A hierarchy structure of criteria for the evaluation of SMEs was used in the paper; methodologies for eliciting weights of importance of criteria from experts and gauging the level of concordance of opinions of experts were applied. Resulting weights of criteria of performance of an insolvent SME were obtained; the importance of the managerial category of criteria was revealed. Prominent features of hierarchy structures and methodology of using the structure for calculating ultimate weights were described and demonstrated. Gauging concordance of opinions of experts revealed a satisfactory level of concordance of opinions of experts; this allowed to prepare the ultimate weights of criteria for multiple criteria evaluation of SMEs for further research.

scholarly journals Bankruptcy prediction in Visegrad group countries using multiple discriminant analysis

Equilibrium ◽  
2018 ◽  
Vol 13 (3) ◽  
pp. 569-593 ◽  
Author(s):  
Tomas Kliestik ◽  
Jaromir Vrbka ◽  
Zuzana Rowland
Keyword(s):  
Discriminant Analysis ◽  
Prediction Models ◽  
Value Added ◽  
Bankruptcy Prediction ◽  
Net Income ◽  
Multiple Discriminant Analysis ◽  
Financial Situation ◽  
The Future ◽  
A Company ◽  
Visegrad Group

Research background: The problem of bankruptcy prediction models has been a current issue for decades, especially in the era of strong competition in markets and a constantly growing number of crises. If a company wants to prosper and compete successfully in a market environment, it should carry out a regular financial analysis of its activities, evaluate successes and failures, and use the results to make strategic decisions about the future development of the business. Purpose of the article: The main aim of the paper is to develop a model to reveal the un-healthy development of the enterprises in V4 countries, which is done by the multiple discriminant analysis. Methods: To conduct the research, we use the Amadeus database providing necessary financial and statistical data of almost 450,000 enterprises, covering the year 2015 and 2016, operating in the countries of the Visegrad group. Realizing the multiple discriminant analysis, the most significant predictor and the best discriminants of the corporate prosperity are identified, as well as the prediction models for both individual V4 countries and complex Visegrad model. Findings & Value added: The results of the research reveal that the prediction models use the combination of same financial ratios to predict the future financial development of a company. However, the most significant predictors are current assets to current liabilities ratio, net income to total assets ratio, ratio of non-current liabilities and current liabilities to total assets, cash and cash equivalents to total assets ratio and return of equity. All developed models have more than 80 % classification ability, which indicates that models are formed in accordance with the economic and financial situation of the V4 countries. The research results are important for companies themselves, but also for their business partners, suppliers and creditors to eliminate financial and other corporate risks related to the un-healthy or unfavorable financial situation of the company.

Possibilities and limitations of the use of bankruptcy prediction models for insolvency prevention

2021 ◽  
pp. 73-94
Author(s):  
Olga Lvova
Keyword(s):  
Financial Reporting ◽  
Financial Distress ◽  
Financial Stability ◽  
Prediction Models ◽  
Organizational Factors ◽  
Bankruptcy Prediction ◽  
Operating Conditions ◽  
Advantages And Disadvantages ◽  
Qualitative Variables ◽  
The Impact

The paper provides the solution to the problem of an integrated classification of existing bankruptcy prediction based on the content analysis of 270 relevant foreign and Russian publications issued within a period of 1910-2020. The author identifies two main groups of models– normative and positive, with the latter categorized into expert, mixed and objective including traditional statistical models and artificial intelligent techniques; and considers the specific features of certain predicting models, their advantages and disadvantages. He then reveals the economic content of such models and the set of ratios applied for identifying company’s financial distress with the following conclusions: approaches to the variables selection are rarely justified, indicators are usually borrowed from previous models or generated automatically by the database configuration; the accounting approach to bankruptcy forecasting based on financial ratios prevails and has serious limitations for Russian companies; the most significant market, value and qualitative variables indicating a decline in the business financial stability are highlighted. Significant limitations of the general use of bankruptcy prediction models for making decisions aimed at insolvency prevention are identified: the inability to anticipate the impact of informal factors that are irregular, unable to extrapolate, and affect companies in different ways; the need to take into account the economic conditions of the national economy, financial reporting standards, and the level of availability of diverse data; the impossibility of creating a universal indicative basis to identify decline of sustainability of any business due to the high volatility of operating conditions in Russia. Bayesian methods and nowcasting, as well as the development of forecasting models for certain industries, are promising areas for the development of modern approaches to bankruptcy prediction, but the fundamental activity for preventing insolvency is not forecasting by models, but the implementation of continuous monitoring of the overall business performance in relation to influencing market, operational, investment, financial, managerial and organizational factors, taking into account significant qualitative variables.

scholarly journals Specifics in strategic management of non-profit organizations in the globalization process

2021 ◽  
Vol 92 ◽  
pp. 02027
Author(s):  
Eva Kicová ◽  
Oľga Poniščiaková
Keyword(s):  
Slovak Republic ◽  
Relevant Literature ◽  
Value Added ◽  
The European Union ◽  
Non Profit ◽  
The Public ◽  
Freedom Of Movement ◽  
The Creation ◽  
Non Profit Organizations ◽  
European Standards

Research background: If globalization presents really a new and not reversible process that creates a more homogenous world, strategies of enterprises should appropriate to this phenomenon, too. European legislation has significantly contributed to the creation of the mutual market and increasing freedom of movement of services within the European Union. Its basic principle can be applied to the harmonization of basic requirements for services and the subsequent normalization – the creation of common European standards. This also applies to the area of non-profit organizations. These organizations are an important part of the public sector, which in the form of various activities, in particular the providing of various services, performs tasks related to addressing manifestations of market imbalances. In contrast to the “traditional” business sector (profit sector), the task of the non-profit sector is not to generate profit but to provide consumer tasks. Purpose of the article: The objective of the article is to clarify and present the specifics of functioning and management of non-profit organizations in the conditions of the Slovak Republic. Methods: During the elaboration of the paper, the methods of compilation of analysis, synthesis and description were used on the basis of the search of the relevant literature. Part of the paper is a survey, which we conducted through a questionnaire on a selected sample of non-profit organizations in the Slovak Republic. Findings & Value added: The results of the survey we have transported into general practice recommendations for non-profit organizations to improve their operating in the conditions of Slovakia while accepting the process of globalization.

scholarly journals Perception of the concept of smart city from the perspective of cities and municipalities of the Slovak Republic

2021 ◽  
Vol 129 ◽  
pp. 08018
Author(s):  
Katarina Repkova Stofkova ◽  
Patricia Janoskova
Keyword(s):  
Smart City ◽  
Slovak Republic ◽  
Smart Cities ◽  
Value Added ◽  
Daily Basis ◽  
Primary Research ◽  
Innovative Solutions ◽  
Analysis And Synthesis ◽  
Modern Technologies

Research background: From time immemorial, settlements face various pitfalls and cope with a large number of problems on a daily basis. However, the 21st century also brings new challenges related to globalization, climate change, demographic change and many others. One of the answers or efforts to solve these problems are smart cities. Smart City as a concept of strategic management is a tool that primarily uses modern technologies to improve the quality of life of residents of individual cities and municipalities. At the same time, there is a synergy of various activities, the no less significant result of which is the achievement of economic and socio-economic successes. Purpose of the article: The main purpose is to evaluate the innovations of individual municipalities and cities within the Slovak Republic. The intention is to evaluate the level of implementation of innovative solutions of cities and municipalities, to find out awareness of the concept of smart city, used strategies, projects, factors, technologies, and other elements of smart city. Methods: The theoretical part was processed using the method of analysis and synthesis. In the practical part, the primary research was used to determine the attitude of cities, which was carried out in the form of a questionnaire. Findings & Value added: Cities and municipalities expressed their attitude to implementation of concept of smart city, financial demands, return on investment and the importance of implementing the smart city concept in building a sustainable and competitive ecosystem.

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