Actuality of Bankruptcy Prediction Models used in Decision Support System
Keywords:bankruptcy prediction models - BPM, multiple discriminant analysis - MDA, decision support system - DSS, crisis management
In the current conditions, the global economy is in a crisis situation. In terms of crisisÂ management this article supports the Romanian companies. This article analysesÂ some classical bankruptcy prediction models used in Decision Support Systems inÂ order to validate or invalidate them in the actual Romanian economical conditions.Â It is essential to take the right decision at the right time, to help the company overcomeÂ an eventual moment of crisis, such as insolvency or even bankruptcy. Our study isÂ based on the financial ratio of 60 Romanian companies, between 2005 and 2009. TheÂ firms are classified in two categories: bankrupted companies (B) and non-bankruptedÂ companies (N-B).
Altman, E.I.: Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy, Journal of Finance, September, 589-609, 1968. http://dx.doi.org/10.1111/j.1540-6261.1968.tb00843.x
Pinches G., Eubank A., Mingo K. and Caruthers K.: The Hierarchical Classification of Financial Ratios, Journal of Business Research, 1975. http://dx.doi.org/10.1016/0148-2963(75)90011-9
Altman, E.I.: Credit Rating: Methodologies, Rationale and Default Risk, London Risk Books, 2002.
Altman E.I., Haldemon R. and Narayama P.: Zeta Analysis, Journal of Banking and Finance, 89-108, June 1977.
Anghel, I.: Falimentul - Radiografie ÅŸi Predicţie, Ed. EconomicÄƒ, BucureÅŸti, 2002.
SzenteÅŸi, S., Lile, R., Rusu, S., Csorba, L. and BÄƒlan, L.: StatisticÄƒ EconomicÄƒ, ediţia a III-a, Ed. UniversitÄƒţii Aurel Vlaicu, Arad, 2011.
Bellovary J., Giacomino D., Akers M. :A Review of Bankruptcy Prediction Studies: 1930 to Present, Journal of Financial Education, Vol. 33 (Winter 2007).
Voinea, L.: Criza economica interna: cauze si solutii 23 nov 2008 http://www.zf.ro/opinii/criza-economica-interna-cauze-si-solutii-3544642.
Pisleag, A.: The Importance of Assessing the Risk of Bankruptcy Under the Current Global Crisis, Bulletin of the Transilvania University of Brasov, Vol. 3 (52) - 2010 Series V: Economic Sciences http://but.unitbv.ro/BU2010/Series%20V/BULETIN%20V%20PDF/291%20Pisleag.pdf.
ONLINE OPEN ACCES: Acces to full text of each article and each issue are allowed for free in respect of Attribution-NonCommercial 4.0 International (CC BY-NC 4.0.
You are free to:
-Share: copy and redistribute the material in any medium or format;
-Adapt: remix, transform, and build upon the material.
The licensor cannot revoke these freedoms as long as you follow the license terms.
DISCLAIMER: The author(s) of each article appearing in International Journal of Computers Communications & Control is/are solely responsible for the content thereof; the publication of an article shall not constitute or be deemed to constitute any representation by the Editors or Agora University Press that the data presented therein are original, correct or sufficient to support the conclusions reached or that the experiment design or methodology is adequate.