BANCRUPTCY PREDICTION: THE CASE OF THE CZECH REPUBLIC AND SLOVAKIA

Authors

SPONEROVÁ Martina

Year of publication 2021
Type Article in Proceedings
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web 5th International Scientific Conference on IT, Tourism, Economics, Management and Agriculture ITEMA 2021
Keywords Bankruptcy prediction, Financial distress, SME, Financial indicator, Logistic regression
Description A considerable number of publications accompanies the research topic of bankruptcy prediction. This has been motivated by the massive toll on SMEs caused by the global crisis of 2007-2009, the recent COVID-19 crisis and the resulting need to update indicators of SME failure. This paper focuses on the Czech and Slovak economy, specifically at small and medium-sized enterprises (SMEs). This article aims to find if there exist different factors that could predict bankruptcy for Czech and Slovak companies. There were investigated 574 czech companies and 889 slovak companies for the period 2010 – 2018. Resulting findings confirm findings of the last years literature review the closer the similarity of businesses, the greater accuracy of bankruptcy models. Further, when a bankruptcy model is developded, it is necessary to sort companies according to different criteria and exploit common used financial indicators with a combination of modified indicators to assess the probability of bankruptcy precisely.
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