Articlediamond2015

The Application of Altman’s Z-Score Model in Predicting Bankruptcy: Evidence from the Trading Sector in Sri Lanka

Aloy Niresh J. · Thuraiyappah Pratheepan

29 citations0/0 files storedInternational Journal of Business and Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Distress and Bankruptcy Prediction Corporate Insolvency and Governance Forecasting Techniques and Applications

Abstract

Prediction of bankruptcy is crucial as the early warning may change entire complications and may avoid the high cost that is associated with distress. The main purpose of this study is to examine the likelihood of bankruptcy of the firms belonging to the Trading Sector in Sri Lanka. The research used data from the financial reports of seven trading companies for a period of the last five years from 2010 to 2014. Altman’s original (1968) bankruptcy model has been applied in order to classify the companies in various levels of financial position namely safe, grey and distress. Findings reveal that 71% of the companies belonging to the Trading Sector were in financial distress and the rest of whole 29% were in the grey zone. The fact that none of the companies lie under the safe zone highlights that as a whole the sector is in a menace.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 29 citations exist upstream.

References

1968FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCY 1992Managerial Applications of Neural Networks: The Case of Bank Failure Predictions 2005Corporate Financial Distress and Bankruptcy 1981The probability of bankruptcy 2009Predicting Korean lodging firm failures: An artificial neural network model along with a logistic regression model 2012The Accuracy of Altman’s Models in Predicting Hotel Bankruptcy 2007Considering the utility of Altman's Z‐score as a strategic assessment and performance management tool 2013The use of financial ratios in predicting corporate failure in Sri Lanka

Cited by

2021Adapting Altman's model to predict the performance of the Palestinian industrial sector 2019An application of Altman Z-score model to analyze the bankruptcy risk: cases of multidisciplinary enterprises in Vietnam 2023Performance of Sharia Public Companies During the Covid-19: An Altman Z-Score Analysis 2024Modern models for predicting bankruptcy to detect early signals of business failure: Evidence from Montenegro

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.