Is it Worth Comparing Different Bankruptcy Models?

Miroslava Dolejšová
2015 Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis  
DOLEJŠOVÁ MIROSLAVA. 2015. Is it Worth Comparing Diff erent Bankruptcy Models? Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(2): 525-531. The aim of this paper is to compare the performance of small enterprises in the Zlín and Olomouc Regions. These enterprises were assessed using the Altman Z-Score model, the IN05 model, the Zmijewski model and the Springate model. The batch selected for this analysis included 16 enterprises from the Zlín Region and 16 enterprises
more » ... and 16 enterprises from the Olomouc Region. Financial statements subjected to the analysis are from 2006 and 2010. The statistical data analysis was performed using the one-sample z-test for proportions and the paired t-test. The outcomes of the evaluation run using the Altman Z-Score model, the IN05 model and the Springate model revealed the enterprises to be fi nancially sound, but the Zmijewski model identifi ed them as being insolvent. The one-sample z-test for proportions confi rmed that at least 80% of these enterprises show a sound fi nancial condition. A comparison of all models has emphasized the substantial diff erence produced by the Zmijewski model. The paired t-test showed that the fi nancial performance of small enterprises had remained the same during the years involved. It is recommended that small enterprises assess their fi nancial performance using two diff erent bankruptcy models. They may wish to combine the Zmijewski model with any bankruptcy model (the Altman Z-Score model, the IN05 model or the Springate model) to ensure a proper method of analysis. Keywords: prediction of bankruptcy, the Altman Z-Score model, the Zmijewski model, the IN05 model, the Springate model, evaluation of fi nancial performance, small enterprises
doi:10.11118/actaun201563020525 fatcat:wx73axvn3rg6lfevcas2ftxhc4