Insolvency prediction model of the company: the case of the Republic of Serbia
Journal Title: Economic Research-Ekonomska Istraživanja - Year 2018, Vol 31, Issue 1
Abstract
In this article, the authors analyse the existing foreign insolvency prediction models of the company and on the basis of the sample of solvent and insolvent companies they aim to develop a new model to predict insolvency of a company by binomial logistic regression (LR), which will be suitable for the business environment in the Republic of Serbia. The research seeks to determine statistically most important financial ratios in predicting insolvency of Serbian companies. As a result of research, a model for the prediction of bankruptcy was created, which accurately classifies 82.9% of solvent (‘healthy’) Serbian companies and 93.3% of Serbian companies which have undergone bankruptcy proceedings (Serbian insolvent companies), while the average (total) accuracy of the prediction model is 88.4% of the cases.
Authors and Affiliations
Dragana Bešlić Obradović, Dejan Jakšić, Mirko Andrić, Ivana Bešlić Rupić
Keywords
Related Articles
- EP ID EP507443
- DOI 10.1080/1331677X.2017.1421990
- Views 64
- Downloads 0
Time varying causality between stock market and exchange rate: evidence from Turkey, Japan and England
In this study, the relationship between exchange rates and stock market indices in Turkey, Japan and England was analysed by using the time varying causality test. First, by the Kapetanios unit root test that allows dete...
IPR scenario and factors for promoting IPR culture: a post-TRIPS period analysis of selected pharmaceutical firms in North India
Different shades of World Trade Organization (WTO) agreement on trade-related intellectual property rights (TRIPS) are reflected in the Indian pharmaceutical industry, but small and medium-scale pharmaceutical firms are...
Examining determinants of entrepreneurial intentions in Slovenia: applying the theory of planned behaviour and an innovative cognitive style
The aim of this paper is to present research on determinants of entrepreneurial intentions through the framework of the theory of planned behaviour and an individual innovative cognitive style. By employing the theory of...
Impact of public expenditure in labour market policies and other selected factors on youth unemployment
ABSTRACT This study investigates the impact of selected macroeconomic, demographic, institutional and educational determinants on youth unemployment rates in Europe, with special attention to effects of Active Labour Mar...
Analysis of annual report disclosure quality for listed companies in transition countries
High quality annual reports can contribute significantly to a company’s success. The main aim of this article is to analyse and compare the level of annual report disclosure quality for listed companies in selected Europ...