Forecasting Bankruptcy Risk in The contexts of Credit Risk Management - A Case Study on Wholesale Food Industry in Poland
Rafal Balina (rafal_balina@sggw.pl)
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Rafal Balina: Warsaw University of Life Sciences - SGGW
International Journal of Economic Sciences, 2018, vol. 7, issue 1, 1-15
Abstract:
The aim of the article was to identify the key factors influencing the increase in the risk of bankruptcy of companies from wholesale food industry in Poland. In addition, the research aimed to identifying the most effective method of forecasting the risk of bankruptcy of enterprises in the examined industry in the context of risk management in banks. The research showed that three key indicators determining the financial situation of the enterprise were the key for the analyzed industry: ratio of own equity and the revenue from sale; difference between the quick liquidity indicator for the industry and for the company and dynamics of company?s short term liabilities. These variables point to the areas of activity of companies from wholesale food industry, to which banks should pay special attention during the credit risk assessment process.
Keywords: bancruptcy; credit risk; food industry; neutral network; linear discriminat; logistic regresion (search for similar items in EconPapers)
JEL-codes: G21 G32 G33 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:sek:jijoes:v:7:y:2018:i:1:p:1-15
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