Bankruptcy models: Verifying their validity as a predictor of corporate failure

Abstract

© 2018, Czestochowa University of Technology. All rights reserved. Although the issue of corporate failure analysis is a hot topic for business research since the last century, even nowadays there are numerous researches focusing on assessing the financial health of companies. Within increasing internationalization and globalization the demand for bankruptcy prediction is important not only for owners of the companies, but also for other interested groups. We aim to test the validity of prediction models developed as partial results of our research project. Bankruptcy prediction models were constructed on the data set of Slovak companies covering the year 2015 and based on the various statistical methodologies. We provided the validity of these models and their prediction accuracy on the data set of Slovak companies covering the following year 2016.