SMEs Default Prediction Model: An Analysis of the Existing Literature

Khorasgani, Amir

doi:10.2139/ssrn.2154652

Cited by 1 publication

(1 citation statement)

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“…Karas et al (2017) state that agricultural activity is specific, especially to other production activities (for which the observed models were primarily formed). However, given the dynamics in the economy, instances in the literature advocate for the appropriateness of utilizing general models for bankruptcy prediction (Cîrciumaru, 2011;Khorasgani, 2011;Zarei et al, 2012;Bencová et al, 2021). These "universal models" demonstrate efficacy contingent upon the economic conditions in the regions where businesses operate, along with the reliability of the financial data used in the applied models (Sušický, 2011).…”

Section: Kralicek Quick Testmentioning

confidence: 99%

Analysis of the Possibility of Bankruptcy in Medium-Sized Agribusiness Companies in Ap Vojvodina

Jocić,

Milić,

Zekić

et al. 2024

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In the context of a volatile economy marked by diverse global crises, it becomes imperative to proactively assess the potential insolvency among economic entities. This study focuses on medium-sized companies involved in agricultural and food production within the AP Vojvodina, spanning the time frame from 2018 to 2022. The primary objective is to assess the likelihood of bankruptcy within the observed companies, applying Altman’s modified Z score (Z’), Kralicek Quick test and the Springate model. The data utilized for this research are sourced from the financial reports of the observed companies. Based on the performed analysis, it can be concluded that the modified Altman’s Z’ score and the Springate model in most cases gave identical results on the occurrence of bankruptcy. Using the Kralicek Quick test, the solvency ratings are quite divergent. In the observed period, the possibility of bankruptcy was higher for agricultural companies compared to ones from the food industry.

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