Martina Sponerová –  Masaryk University, Faculty of Economics and Administration, Lipová 41a, 602 00 Brno, Czech Republic

 

DOI: https://doi.org/10.31410/ITEMA.S.P.2021.65

 

5th International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2021, Online/virtual, October 21, 2021, SELECTED PAPERS published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-50-9, ISSN 2683-5991, DOI: https://doi.org/10.31410/ITEMA.S.P.2021

 

Abstract

A considerable number of publications accompanies the research topic of bankruptcy prediction. This has been motivated by the massive toll on SMEs caused by the global crisis of 2007-2009, the recent COVID-19 crisis and the resulting need to update indicators of SME failure. This paper focuses on the Czech and Slovak economies, specifically at small and medium-sized enterprises (SMEs).

This article aims to find if different factors could predict bankruptcy for Czech and Slovak companies. There were investigated 574 Czech companies and 889 Slovak companies for the period 2010 – 2018. The resulting findings con­firm conclusions of the last year’s literature review. It is most appropriate to construct a financial distress model for a given country or a group of coun­tries with similar characteristics or neighbouring countries. Furthermore, it is advisable to exploit common used financial indicators with a combination of modified indicators to assess the probability of bankruptcy precisely.

 

Keywords

Bankruptcy prediction; Financial distress; SME; Financial indicator; Logistic regression

 

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