Prediction of Bankruptcy in the Agro-Food Industry in the City of Kinshasa: Application of Edward Altman's Z-Score Model

Prédiction de faillite de l'industrie agroalimentaire de la ville de Kinshasa: application du modèle Z-score d'Edward Altman

Julien Nlandu ()
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Julien Nlandu: FSEG - Faculté des Sciences Economiques et de Gestion - Faculté des Sciences Economiques et de Gestion, DSG-UNIKIN - Département des Sciences de Gestion-Université de Kinshasa

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Abstract: Abstract Corporate bankruptcy prediction has become a major concern in financial decision-making. However, despite the extensive validation of Altman's revised Z'-score model in developed and emerging economies, its application to the agri-food industry in the Democratic Republic of the Congo remains largely underexplored. This study addresses this gap by assessing the bankruptcy risk of seven major agri-food firms opereting in Kinshasa province over the 2018-2024 period using the revised Altman Z'-score model and financial data adjusted for inflation and exchange rate volatility. The findings reveal that more than half of the firms are classified whithin the distress zone, indicating a high level of finacial vulnerability accross the sector, while only a few firms exhibit sustained financial soundness. By providing empirical evidence from the congolese context, this study contributes to the literature on corporate faillure prediction in developing economies and offers valuable implications for managers, investors, creditors, and policymakers. Keywords : prediction, bankruptcy, agro-food industry, Z-score model Classification JEL : G33, G32, C53, L66 Article Type : empirical research

Keywords: modèle Z-score Classification JEL : G33; G32; C53; L66 prediction; bankruptcy; agro-food industry; Z-score model Classification JEL : G33; L66 Article Type : empirical research; industrie agroalimentaire; faillite; prédiction; prédiction faillite industrie agroalimentaire modèle Z-score Classification JEL : G33 G32 C53 L66 prediction bankruptcy agro-food industry Z-score model Classification JEL : G33 G32 C53 L66 Article Type : empirical research (search for similar items in EconPapers)
Date: 2026-08-08
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Published in International Journal of Accounting, Finance, Auditing, Management and Economics, inPress, 7 (Issue 08(2026)), pp.774-784. ⟨10.5281/Zenodo.21776202⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05719834

DOI: 10.5281/Zenodo.21776202

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