Comparison of Bankruptcy Prediction Models in Relation to SME segment in the Czech Republic



Year of publication 2017
Type Article in Proceedings
Conference 20th Annual International Conference ENTERPRISE AND COMPETITIVE ENVIROMENT
MU Faculty or unit

Faculty of Economics and Administration

Web Enterprise and Competitive Environment
Field Economy
Keywords credit risk; bankruptcy prediction; SME; bankruptcy model; insolvency; probability of default
Description The good and stable financial situation of enterprises is the factor which eliminates credit risk of a bank, so the prediction of a bankruptcy and a credit risk of a bank is an unflagging object of a discussion. We focus on small and medium sized enterprises (SMEs) considering the fundamental role played in the Czech economy and the considerable attention placed on SMEs. The aim of this article is the comparison of the real predicting abilities of several bankruptcy models. We have chosen the Altman Z-score, the Ohlson O-score, the Zmijewski’s model, the Taffler’s model, and the IN05 model. The basic form of the models is used as proposed by their authors. The results are compared using the classification table and ROC curve.
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