Detail publikace

Identification of financial signs of bankruptcy: A case of industrial enterprises in the Czech Republic

KARAS, M. REŽŇÁKOVÁ, M.

Originální název

Identification of financial signs of bankruptcy: A case of industrial enterprises in the Czech Republic

Typ

článek ve sborníku ve WoS nebo Scopus

Jazyk

angličtina

Originální abstrakt

The current approach to creating bankruptcy models involves a search for predictors that have been shown to predict bankruptcy in only one period, namely a year before it occurs. That approach does not allow to identify the root causes of bankruptcy. Yet studies exist (Beaver, 1966; Deakin, 1972; Henerby, 1996; Niemann, Schmidt, Neukirchen, 2008) which suggest that the signs of bankruptcy could be recognized much sooner. The intent of this article is to present the results of a research aspiring to identify the warning signs of bankruptcy within one to five years before it occurs. It was found that a predominant sign of an eventual bankruptcy is a decrease in the performance of company's assets. In the period of three years before the bankruptcy, this development is further aggravated by a decline in the quality of generated earnings. The causes and the first signs of a decrease in the performance of company's assets appear more than five years before the company actually experiences bankruptcy.

Klíčová slova

bankruptcy prediction, signs of bankruptcy, return on assets, company performance

Autoři

KARAS, M.; REŽŇÁKOVÁ, M.

Rok RIV

2013

Vydáno

25. 4. 2013

Místo

Zlín

ISBN

978-80-7454-246-6

Kniha

Proceedings of the 6th International Scientific Conference: Finance and the performance of firms in science, education, and practise

Strany od

324

Strany do

335

Strany počet

12

BibTex

@inproceedings{BUT99510,
  author="Michal {Karas} and Mária {Režňáková}",
  title="Identification of financial signs of bankruptcy: A case of industrial enterprises in the Czech Republic",
  booktitle="Proceedings of the 6th International Scientific Conference: Finance and the performance of firms in science, education, and practise",
  year="2013",
  pages="324--335",
  address="Zlín",
  isbn="978-80-7454-246-6"
}