Construction measures of bankruptcy: case study of Polish enterprises

Natalia Nehrebecka () and Aneta Dzik-Walczak

Global Business and Economics Review, 2016, vol. 18, issue 3/4, 420-444

Abstract: The paper presents a model assigning a bankruptcy probability to a company, developed on the basis of individual data from balance sheets and income statements of Polish companies in the 2001-2010 period. The research was based on a logistic regression performed on categorised variables transformed using a weight of evidence approach. In the forecasting model of a possible bankruptcy in a year's horizon the highest weight was assigned to the indicator for the ability to cover financial costs which explained the company's ability to meet the interest payments and capital costs. In the more generalised model which accounts for the macroeconomic situation the most important was the indicator for the ability to pay off debt. In the model forecasting bankruptcies three-years in advance - the early warning model - no dominant indicator was found.

Keywords: bankruptcy probability; microdata; Polish enterprises; scoring methods; case study; Poland; forecasting models; financial costs; interest payments; capital costs; macroeconomics; debt payments; early warning. (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.inderscience.com/link.php?id=76234 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:gbusec:v:18:y:2016:i:3/4:p:420-444

Access Statistics for this article

More articles in Global Business and Economics Review from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().