The Potential Threat of Corporate Financial Distress in Switzerland

Tomáš Pražák ()
Additional contact information
Tomáš Pražák: Silesian University in Opava

Chapter Chapter 25 in Advances in Time Series Data Methods in Applied Economic Research, 2018, pp 365-376 from Springer

Abstract: Abstract The financial performance and the financial health of companies is given through the ability to generate added value. For the resulting effect of creating added value, maximum activity is required. Otherwise, companies have significant payment difficulties that can be resolved by a radical change in its activities or structure. The aim of this paper is to indicate potential threat of the corporate financial distress in Switzerland. The financial health of companies is analyzed by Taffler’s bankruptcy model. The construction of the predictive models and the bankruptcy models are based on actual data from companies which were threatened by bankruptcy in previous years. The Taffler’s bankruptcy model is applied on the annual corporate financial results in Poland from 2006 to 2015. The results indicated that approximately 34% of companies during the reporting period were at risk of financial distress. Based on the development of the number of endangered businesses, it can be observed that during the recession, the number of companies in financial distress is rising. This hypothesis was confirmed by Pearson’s correlation analysis.

Keywords: Financial distress; Taffler’s bankruptcy model; Switzerland; Pearson correlation coefficient (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:prbchp:978-3-030-02194-8_25

Ordering information: This item can be ordered from
http://www.springer.com/9783030021948

DOI: 10.1007/978-3-030-02194-8_25

Access Statistics for this chapter

More chapters in Springer Proceedings in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().