Marek Durica
University of Žiline, Faculty of Operation and Economics of Transport and Communications, Department of Quantitative Methods and Economic Informatics, Univerzitná 8215/1, 010 26 Žilina, Slovak Republic
Peter Adamko
University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Quantitative Methods and Economic Informatics, Univerzitna 1, 010 26 Zilina, Slovak Republic
Katarina Valaskova
University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics, Univerzitna 1, 010 26 Zilina, Slovak Republic
DOI: https://doi.org/10.31410/EMAN.2018.969
2nd International Scientific Conference – EMAN 2018 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 22, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty – Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-11-0
Abstract
The issue of company financial distress and the early prediction of potential bankruptcy is one of the most discussed issues of economists around the world in recent decades. The most widely used method to create these models is Multidimensional Discrimination Analysis from the first attempts in the 1960s to the present. In the paper we present prediction model for some emerging market countries in Balkan region created using a Multidimensional Discriminant Analysis method based on real data from the financial statements obtained from Amadeus – A database of comparable financial information for public and private companies across Europe. Our database contains data more than 200 000 companies and about 25 predictors. Using this model, it is possible to predict the financial difficulties of companies one year in advance.
Key words
Prediction model, Financial distress, Multidimensional Discrimination Analysis, Prediction ability.
