Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2053785
Implementation of standards into predictors of financial stability
Michal Kubenka
Renata Myskova
Sažetak
This article proposes a methodology for modifying bankruptcy
models. The authors focused on the role of partial predictors in
predicting companys bankruptcy. According to the authors, it is
necessary to analyse the anomalies that occur in companies that
are losing financial stability. It has been hypothesized that some
anomalies in the form of extreme values may deviate the overall
final value of the model to such an extent that they lead to an
erroneous evaluation of the company by the bankruptcy model.
As a result, companies in bankruptcy may be incorrectly classified
as ’financially stable’ or, conversely, financially sound companies
with certain extreme values could be mistaken for companies in
bankruptcy. To verify the hypothesis, the authors analysed the
probability distribution of partial predictors of the bankruptcy
Model 1 on a test and verification sample of more than 1,100
companies. Limits were set to eliminate extreme values and, as a
result, the accuracy of the model has been increased. The introduction of limits has increased the accuracy of the model, especially in bankruptcy prediction. For bankruptcies, the accuracy
increased from 85.82% to 88.65% for the test sample and from
84.00% to 88.00% for the verification sample.
Ključne riječi
Economic development; financial stability; bankruptcy model; outliers
Hrčak ID:
303022
URI
Datum izdavanja:
31.3.2023.
Posjeta: 137 *