BANKRUPTCY DETERMINANTS IN TIME VARIANT SETTINGS

Elena Lancosova, Masaryk Univesity, Faculty of Economics and Administration, Lipová 41a, 602 00 Brno-střed, Czech Republic
2019 Selected Papers (part of ITEMA conference collection)   unpublished
This paper aims to assess importance of widely used bankruptcy discriminants in dynamic, time dependent environment as opposed to more traditional, static methods used in bankruptcy models. Such setting gives way to new, process oriented, point of view on companies nearing their bankrupt. Subsequently, new simple discriminants with stronger relationship to bankruptcy are proposed while strictly using only widely available information from accounting statements. Behaviour of both proposed and
more » ... oth proposed and traditional discriminants is examined through kernel smoothing and discriminant's evolution before bankruptcy and thus the reasons behind their respective predictive powers are uncovered.
doi:10.31410/itema.s.p.2019.53 fatcat:nfbxffpwhzdjlcglucpuo5l7qm