New bankruptcy prediction models for Polish companies

Marek Gruszczyński, Piotr Ciesielski and Mariusz Domeracki
Additional contact information
Piotr Ciesielski: Warsaw School of Economics
Mariusz Domeracki: Warsaw School of Economics

No 21, Working Papers from Department of Applied Econometrics, Warsaw School of Economics

Abstract: New logit models for predicting bankruptcy of Polish companies are presented. Major features of these approaches are: (1) selection of appropriate companies to the sample as the key step of the research, (2) well defined samples, (3) the reasoning based on the unified financial state-ments and (4) acceptable results of prediction – within samples as well as for the hold-out sam-ples. In addition, the presented models of Stepien and Strak [2004], Ciesielski [2004] and Dom-eracki [2004] have been validated for the best companies on the Warsaw Stock Exchange. The validation principle states that the estimate of the probability of bankruptcy for such company shall be less than 0.5. New models for predicting bankruptcy of Polish companies well fit into the current research in the field of financial applications of microeconometrics.

Keywords: bankruptcy; financial distress; financial indicators; binomial logit (search for similar items in EconPapers)
JEL-codes: C25 G33 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2005-05-22
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://kolegia.sgh.waw.pl/pl/KAE/struktura/IE/stru ... Papers/aewp04-05.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://kolegia.sgh.waw.pl/pl/KAE/struktura/IE/struktura/ZES/Documents/Working_Papers/aewp04-05.pdf [301 Moved Permanently]--> https://kolegia.sgh.waw.pl/pl/KAE/struktura/IE/struktura/ZES/Documents/Working_Papers/aewp04-05.pdf)

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:wse:wpaper:21

Access Statistics for this paper

More papers in Working Papers from Department of Applied Econometrics, Warsaw School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Marcin Owczarczuk ( this e-mail address is bad, please contact ).