Prediction of Financial Distress in Indian Firms Using Altman Z- Score Model
Keywords:
financial, distress.Abstract
Recently, it is notable that business environment is everchanging. Due to dynamic business environment, companies have to face many problems without coping up with the changed environment, companies are not able to survive in the market. If the company is slow in responding to changes in the environment any social economic and technological changes may affects its performance. India is a developing country. Central and state governments take many industrial reform initiatives for the industrial growth. But due to enhance uncertainty scenario, many companies have been suffering from distress and bankruptcy has become very major problem in India because it’s become challenging for the companies to survive in the market in ever growing business environment. Companies can escape from the situation of the bankruptcy by the constantly update themselves.
Downloads
References
Aasen, M. R. (2011). Applying Altman’s Z-Score to the Financial Crisis: an empirical study of financial distress on Oslo Stock Exchange (Master's thesis).
Ahmed, M. A. R., & Govind, D. (2018). An Evaluation of the Altman Z-Score Model in Predicting Corporate Bankruptcy for Canadian Publicly Listed Firms.
Aktaruzzaman, M. (2019). COMPARATIVE ANALYSIS: performance and possibility of bankrupt in banking sector of Finland, China and Bangladesh.
AlAli, M. S. (2018). Predicting financial distress for mobile telecommunication companies listed in Kuwait stock exchange using altman’s model. Journal of Economics Finance and Accounting, 5(3), 242-248.
Alayande, S., & Adekunle, B. (2015). An overview and application of discriminant analysis in data analysis. IOSR Journal of Mathematics, 11(1), 12-15.
Al-Dalaien, B. O. A., & Alhroob, M. N. H. (2017). Financial performance analysis of Jordanian insurance companies using the Altman z-score model. International Journal of Academic Research and Development ISSN, 2455-4197.
Almwajeh, O. (2004). Applying Altman's Z-Score model of bankruptcy for the prediction of financial distress of rural hospitals in Western Pennsylvania (Doctoral dissertation, Indiana University of Pennsylvania).
Altman, E. I. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The journal of finance, 23(4), 589-609.
Altman, E. I. (2013). Predicting financial distress of companies: revisiting the Z-score and ZETA® models. In Handbook of research methods and applications in empirical finance. Edward Elgar Publishing.
Anjum, S. (2012). Business bankruptcy prediction models: A significant study of the Altman’s Z-score model. Available at SSRN 2128475.
Arnold, T., & Earl Jr, J. H. (2006). Applying Altman's Z-Score in the Classroom. Journal of Financial Education, 97-102.
Awais, M., Hayat, F., Mehar, N., & Ul-Hassan, W. (2015). Do Z-Score and Current Ratio have Ability to Predict Bankruptcy? Developing Country Studies, 5(13), 30-36.
Bagntasarian, A., & Mamatzakis, E. (2019). Testing for the underlying dynamics of bank capital buffer and performance nexus. Review of Quantitative Finance and Accounting, 52(2), 347-380.
Batchelor, T. (2018). Corporate Bankruptcy: Testing the Efficacy of the Altman Z-Score. International Research Journal of Applied Finance, 9(9), 404-414.
Beaver, W. H., Correia, M., & McNichols, M. F. (1966). Financial statement analysis and the prediction of financial distress. Foundations and Trends in Accounting, 5(2), 99-173.
Cerri, A., & Gigante, G. (2013). Estimating the probability of financial distress in European markets: prediction models and empirical applications. In Bank Performance, Risk and Securitization (pp. 37-52). Palgrave Macmillan, London.
Chouhan, V., Chandra, B., & Goswami, S. (2014). Predicting financial stability of select BSE companies revisiting Altman Z score. International Letters of Social and Humanistic Sciences, 15(2), 92-105.
Coelho, M. (2014). Predicting Corporate Failure: an application of Altman's Z-Score and Altman's EMS models to the JSE Alternative Exchange from 2008 to 2012 (Doctoral dissertation, University of Cape Town).
Foteini. Gatomati (2016). The impact of SMEs Z-score on their access to bank loans (Doctoral dissertation).
Ghosh, P. (2013). Testing of Altman’s Z-Score model, a Case Study of Dunlop India Ltd. Paripex- Indian. Journal of Research, 3(4).
Gurau, T., & van der Sar, N. (2013). A Model of Bankruptcy Prediction: Calibration of Atman’s Z-score for Japan. Erasmus University Rotterdam. Retrieved October, 31, 2016.
Hanson, R. O. (2003). A Study of Altman's Revised Four-variable Z ″-score Bankruptcy Prediction Model as it Applies to the Service Industry (Doctoral dissertation, Nova Southeastern University.).
Harrison, M. E. (2005). A study of Altman's (1983) revised four-variable Z-score bankruptcy prediction model for asset sizes and manufacturing and service companies. Nova South-eastern University.
Hayes, S. K., Hodge, K. A., & Hughes, L. W. (2010). A study of the efficacy of Altman’s Z to predict bankruptcy of specialty retail firms doing business in contemporary times. Economics & Business Journal: Inquiries & Perspectives, 3(1), 130-134.
Hillegeist, S. A., Keating, E. K., Cram, D. P., & Lundstedt, K. G. (2004). Assessing the probability of bankruptcy. Review of accounting studies, 9(1), 5-34.
Horváthová, J., & Mokrišová, M. (2018). Risk of bankruptcy, its determinants and models. Risks, 6(4), 117.
Imelda, E., & Alodia, I. (2017). The Analysis of Altman Model and Ohlson Model in Predicting Financial Distress of Manufacturing Companies in the Indonesia Stock Exchange. Indian-Pacific Journal of Accounting and Finance, 1(1), 51-63.
Jaffari, A. A., & Ghafoor, Z. (2017). Predicting Corporate Bankruptcy in Pakistan: A Comparative Study of Multiple Discriminant Analysis (MDA) and Logistic Regression. Research Journal of Finance and Accounting, 8(3), 81-100.
Jawabreh, O. A., Al Rawashdeh, F., & Senjelawi, O. (2017). Using Altman's Z-Score model to predict the financial failure of hospitality companies-case of Jordan. International Journal of Information, Business and Management, 9(2), 141.
Jennings, M. E. (2005). Applicability of Altman's revised four variable z-score as a bankruptcy predictor for health maintenance organizations. Nova South-eastern University.
Jouzbarkand, M., Keivani, F. S., Khodadadi, M., Fahim, S. R. S. N., & Aghajani, V. (2013). Bankruptcy prediction model by Ohlson and Shirata models in Tehran stock exchange. World Applied Sciences Journal, 21(2), 152-156.
Khaddafi, M., Heikal, M., & Nandari, A. (2017). Analysis Z-score to predict bankruptcy in banks listed in Indonesia stock exchange. International Journal of Economics and Financial Issues, 7(3), 326-330.
Kiaupaite-Grushniene, V. (2016, December). Altman Z-score model for bankruptcy forecasting of the listed Lithuanian agricultural companies. In 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016). Atlantis Press.
Kumar, M. N., & Rao, V. S. H. (2015). A new methodology for estimating internal credit risk and bankruptcy prediction under Basel II Regime. Computational Economics, 46(1), 83-102.
Li, X., Tripe, D. W., & Malone, C. B. (2017). Measuring bank risk: An exploration of z-score. Available at SSRN 2823946.
Lisník, J. (2007). Valuation of Companies. Acta Polytechnica, 47(4-5).
Makini, P. A. (2015). Validity of altman’s z-score model in predicting financial distress of listed companies at the Nairobi securities exchange (Doctoral dissertation, University of Nairobi).
Meeampol, S., Lerskullawat, P., Wongsorntham, A., Srinammuang, P., Rodpetch, V., & Noonoi, R. (2014, June). Applying emerging market Z-score model to predict bankruptcy: A case study of listed companies in the stock exchange of Thailand (Set). In Management, Knowledge and Learning International Conference (pp. 25-27).
Meeampol, S., Srinammuang, P., Rodpetch, V., & Wongsorntham, A. (2016). Comprehensive Analysis of Bankruptcy Prediction on Stock Exchange of Thailand Set 100. In Managing Innovation and Diversity in Knowledge Society Through Turbulent Time: Proceedings of the Make Learn and TIIM Joint International Conference 2016 (pp. 335-344).
Merkevicius, E., Garšva, G., & Girdzijauskas, S. (2006, May). A hybrid SOM-Altman model for bankruptcy prediction. In International Conference on Computational Science (pp. 364-371). Springer, Berlin, Heidelberg.
Mihalovic, M. (2016). Performance comparison of multiple discriminant analysis and logit models in bankruptcy prediction. Economics & Sociology, 9(4), 101.
Mohammed, S. (2016). Bankruptcy prediction by using the Altman Z-score model in Oman: A case study of Raysut cement company SAOG and its subsidiaries. Australasian Accounting, Business and Finance Journal, 10(4), 70-80.
Okay, K. (2015). Predicting business failures in non-financial Turkish companies (Doctoral dissertation, Bilkent University).
Onakoya, A. B., & Olotu, A. E. (2017). Bankruptcy and insolvency: An exploration of relevant theories. International Journal of Economics and Financial Issues, 7(3), 706-712.
Ou, C., & Haynes, G. W. (2006). Acquisition of additional equity capital by small firms–findings from the national survey of small business finances. Small Business Economics, 27(2-3), 157-168.
Peppal, S. (2018). AN EMPIRICAL ANALYSIS OF FINANCIALLY DISTRESSED INDIAN COMPANIES
Pradhan, R. (2014). Z score estimation for Indian banking sector. International Journal of Trade, Economics and Finance, 5(6), 516.
Pradhan, R., Pathak, K. K., & Singh, V. P. (2011). Application of neural network in prediction financial viability. International Journal of Soft Computing and Engineering (IJSCE) ISSN, 2231-2307.
Prusak, B. (2018). Review of research into enterprise bankruptcy prediction in selected central and eastern European countries. International Journal of Financial Studies, 6(3), 60.
Rado, M., & van der Sar, N. (2013). Testing and Calibrating the Alltman Z-score for the UK. Rotterdam: Department of Business Economics Erasmus University.
Raj, M. P., & Dinakar, G. (2017). Analysis of Selected Automobile Companies in India by Using Altmans Z Score. BIMS International Journal of Social Science Research, 2(1), 37-54.
Rama, K. D. (2012). An empirical evaluation of the altman (1968) failure prediction model on south african jse listed companies (Doctoral dissertation, University of the Witwatersrand, Faculty of Commerce, Law and Management, School of Accountancy).
Rao, N. V., Atmanathan, G., Shankar, M., & Ramesh, S. (2013). Analysis of bankruptcy prediction models and their effectiveness: An Indian perspective. Gt. Lakes Her, 7(2).
Saji, T. G. (2018). Financial Distress and Stock Market Failures: Lessons from Indian Realty Sector. Vision 22 (1), 50-60.
Salimi, A. Y. (2015). Validity of Altmans z-score model in predicting bankruptcy in recent years. Academy of Accounting and Financial Studies Journal, 19(2), 233.
Downloads
Published
How to Cite
Issue
Section
License
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
