Descriptive variables and their role in predicting the financial position of Algerian companies: The case of a sample of Algerian companies
Despite positive results quantitative variables have had in predicting the future of companies alongside their predictive ability of companies’ financial position, the remarkable increase in bankruptcies of companies without any early detection and the consequent damage to the economy in general and to companies in particular, highlighted the need to make up for quantitative variables luck in terms of predictive significance in the process of predicting companies’ financial position, which made studies interested in this field react by emphasizing variables of descriptive nature. The aim of this study is to appreciate aspects of variables of descriptive nature and the extent of their contribution to the prediction of financial position of Algerian companies, using as a case study descriptive variables data of the risk scoring technique with application on a sample data of 15 companies operating in Algiers. This study concluded that descriptive variables contribute significantly to the prediction of the financial position of Algerian companies.