Bankruptcy Prediction Models in Prešov Region of the Slovak Republic

Juliána BEDNÁROVÁ - Kamila SOTÁKOVÁ

https://doi.org/10.53465/EDAMBA.2022.9788022550420.52-63

 

Abstract. The current business environment, not only in the Slovak Republic, is characterized by the very frequent existence of crises of business entities. It is no different even during the pandemic, which was characterized by various measures or restrictions affecting the smooth running of companies.

If the company can adapt to the constant changes in the market and thus survive, it needs to know in which financial condition it is and what is its perspective in the market. Companies can use financial analysis, which monitors not only the company's management in the past period, but also with a view to the future. As a result, financial analysis becomes a strategic tool for company management and, with the help of indicators, represents a quantitative expression of the company's financial status. To predict the future state of the company, it performs an ex-ante analysis that uses several methods, among which we include prediction models, especially creditworthiness and bankruptcy models or models based on artificial intelligence.

The contribution is focused on predictive bankruptcy models with the aim of pointing out the financial situation and prosperity of businesses in the Prešov region carrying out their entrepreneurial activity according to SK NACE 56300 – hospitality services during the Corona virus pandemic. Emphasis is placed on the informative value of selected models applied to a selected sample of 204 companies operating in 13 districts of the Prešov Region of the Slovak Republic.

Keywords: bankruptcy prediction models, Altman model, Taffler model, bonita index

JEL classification: C38, G33, M41

Fulltext: PDF

Online publication date: 3 March 2023

ISBN: 978-80-225-5042-0

Publisher: University of Economics in Bratislava

Pages: 52-63

 

To cite this proceedings paper (STN ISO 690 and 690-2): 

BEDNÁROVÁ, J., SOTÁKOVÁ, K. 2023. Bankruptcy prediction models in Prešov region of the Slovak republic. In LÜLEYOVÁ, A. (ed.). EDAMBA 2022: Conference Proceedings. Bratislava: University of Economics in Bratislava, 2023. ISBN 978-80-225-5042-0, pp. 52-63.

https://doi.org/10.53465/EDAMBA.2022.9788022550420.52-63