Predicting bankruptcy based on the full population of Croatian companies

Bogdan, Sinisa; Šikić, Luka; Bareša, Suzana

doi:10.32910/ep.72.5.1

Cited by 3 publications

(3 citation statements)

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“…An overall assess ment of the SWOT matrix for hotel business strategy is given, and SWOT analysis and other measures were used to study perceived situations and trends in the industry, the theoretical approach to time measurement was con firmed. A significant statistical relationship was noted the relationship between the external and internal environment and the dynamics of top management team members [8]. Strategies to restore hotel revenues, the impact of the COVID19 pandemic were developed [9].…”

Section: 2mentioning

confidence: 99%

“…ISSN 2664-9969 method, according to which the factors of the market environment are divided into groups [4]; -the basics of using SWOT analysis and brainstorm ing as analytical tools are given [5]; -an assessment of the state of the hotel services market is given [6]; -reviewed tourism features [7]; -assessed SWOT matrix [8]; -reviewed revenue recovery [9]; -online booking analysis [10]; -evaluation of green hotels [11]; -reviewed various types of strategies [12]; -the tactics of combating COVID19 are highligh ted [9,11]; -the researchers used complex mathematical tools [9]. The detailed contribution of researchers in the ap plication of SWOT analysis in hotel business strategy is outlined in the article below.…”

Section: Introductionmentioning

confidence: 99%

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Application of SWOT analysis to justify the strategy of hotel business enterprises

Panteleiev¹

2023

TAPR

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One of the important areas of action in Ukraine is the restoration of the sphere of activity of hotels with the reduction of restrictions after COVID-19 in the conditions of the russian federation's war against Ukraine. Using the experience of hotels in other countries will be useful in restoring the tourism industry in Ukraine. Disadvantages in the operation of hotels arise from the fact that management decisions are sometimes made intuitively, modern innovative management methods, such as SWOT analysis, are not used. The object of the research is the influence of the owner and management on the review of the business strategy in the critical use of the hotel's capabilities with the help of SWOT analysis. The problem of improving business management was solved at the stage of considering options for improving the hotel's operations. The results were to show the chance of choosing the optimal business strategy when systematically considering options for management decisions regarding the future of the hotel using SWOT analysis techniques. When applying a SWOT analysis, the weaknesses and strengths of the hotel are modeled; but it requires special statistical knowledge. In the paper, based on the processing of studied of the hospitality industry, examples of SWOT analysis experience for the implementation of business strategy by hotels in countries with a developed tourism market are indicated. Consolidated information is formed on the components of a SWOT analysis of a hotel business strategy according to the authors' proposals. The process of SWOT analysis in improving the activity of Ukrainian hotels at the stage of planning and implementation of strategic directions is revealed. The formation of an information base is outlined with an integrated approach in the process of implementation. Organizational measures for implementing the hotel strategy according to SWOT analysis are indicated. Conclusions are drawn and directions for further research are shown. The obtained results are the process of making management decisions based on a set of market data, which determines the application of a certain sequence of recognized stages (algorithm). A SWOT analysis, which was prepared by eliminating all the ideas of the participants and ranking them in order of importance, will combine a large problem into a report that is more understandable to individuals and must be put into practice by them.

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Section: 2mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Application of SWOT analysis to justify the strategy of hotel business enterprises

Panteleiev¹

2023

TAPR

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“…Charles L. Merwin (1942) published a study on the prediction of financial distress, which held primacy in the field until 1966, when Beaver published a new study that was carried out on a sample of 79 companies that had gone bankrupt in the period between [1954][1955][1956][1957][1958][1959][1960][1961][1962][1963][1964] (Beaver, 1966). The focus of this early studies was on the analysis of financial ratios in order to find financial indicators able to predict business failure (Bogdan et al, 2021). All these studies were based on a univariate statistical analysis, as they merely compared the successful companies with the unsuccessful ones.…”

Section: Introductionmentioning

confidence: 99%

Application of the Altman Model for the Prediction of Financial Distress in the Case of Slovenian Companies

Dolinšek,

Kovač

2024

Organizacija

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Background/Purpose The aim of this paper is to verify the applicability and accuracy of the Altman model in the case of Slovenian companies. The use of the Altman model is hugely popular and widespread among financiers, analysts and other stakeholders who want to determine the creditworthiness of a company’s operations and the likelihood of it running into financial difficulties in the coming years. Methods The study was conducted on a sample of 66 Slovenian companies, which were divided into two equal groups: bankruptcy and non-bankruptcy companies. Based on accounting data for the last five years, the authors of this paper calculated the Z-Score, which is based on the Multiple Discriminant Analysis (MDA). By calculating the statistical error of the estimate (type I and II), the authors verified the extent (in percentage terms) to which the companies had been correctly classified by the model. The Mann-Whitney U test was used to check whether there was a difference in the average Z-Score between the two groups of companies. Results The authors determined that the reliability of the Altman model was 71.21% when tested at the upper bound (the threshold value of the Z-Score was 2.6) and 80.30% when tested at the lower bound (the threshold value of the Z-Score was 1.1). This is similar to other countries, where the reliability was found to be over 70% in most cases. Despite the lower reliability of the model, the Z-Score proved to be an important factor in differentiating between the two groups of companies, as bankruptcy companies had a lower value of this indicator than non-bankruptcy companies. Conclusion Based on the results of this study, as well as those of other studies, it can be summarized that the Altman model is a fairly good way for companies to determine the success of their business in a relatively simple and quick way and also to predict the potential risk of their operations in the future. However, since the reliability of the model is not 100%, it is important to be careful when making business predictions and carry out additional in-depth analyses or use other methods.

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Construction of bankruptcy prediction model using discriminant analysis and financial ratios

Kušter¹

2023

Ekon: teor praks

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The main aim of this research is to develop a statistical model that can reliably predict bankruptcy of Serbian companies one year before bankruptcy proceedings start. The main motive for the research is the fact that there are not many scientific papers focusing on this important issue in Serbia. Bankruptcy prediction model may be useful for future researchers, but also for business owners and other stakeholders. Research was conducted using financial ratio indicators and discriminant analysis in IBM's SPSS v.26 program. Initially 100 companies from the territory of Serbia were included in the research, but after data screening and meeting all the assumptions for discriminant analysis, 74 of them were included in the final modelling process. It was confirmed that the commonly used financial ratios and discriminant analysis can be useful in creating a bankruptcy prediction model, since the classification power of the developed model is 71.6% for original grouped cases, and 70.3% for cross-validated cases.

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Predicting bankruptcy based on the full population of Croatian companies

Cited by 3 publications

References 0 publications

Application of SWOT analysis to justify the strategy of hotel business enterprises

Application of SWOT analysis to justify the strategy of hotel business enterprises

Application of the Altman Model for the Prediction of Financial Distress in the Case of Slovenian Companies

Construction of bankruptcy prediction model using discriminant analysis and financial ratios

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