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Bankruptcy prediction model for private limited companies of Lithuania

Ekonomika

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Title Bankruptcy prediction model for private limited companies of Lithuania
 
Creator Šlefendorfas, Gediminas
 
Subject —
bankruptcy prediction model; private limited companies; multivariate discriminant analysis method; Lithuania
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Description The paper is mainly devoted to the bankruptcy prediction models and their ability to assess a bankruptcy probability for Lithuanian companies. The study showed that the most common type of companies in Lithuania is a private limited company, therefore, the main objective was to analyse such companies’ financial information and by using these results, create a new bankruptcy prediction model, which would allow to predict the bankruptcy probability as accurately as possible. 145 companies (73 already bankrupt and 72 still operating) were chosen as a primary sample and by using multivariate discriminant analysis stepwise method a linear function ZGS has been created. To achieve that, 156 different financial ratios were selected as a primary input data by using correlation calculation between bankruptcy and still operating companies and Mann – Whitney U test techniques. The results showed that 89% of companies were classified correctly, which states that the model is strong enough to predict bankruptcy probability for private limited companies operating in Lithuania in a sufficient accuracy.
 
Publisher Vilniaus universiteto Ekonomikos fakultetas / Vilnius University Faculty of Economics
 
Contributor —
 
Date 2016-04-12
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.zurnalai.vu.lt/ekonomika/article/view/9910
10.15388/Ekon.2016.1.9910
 
Source Ekonomika; Ekonomika 2016 95(1); 134-152
1392-1258
1392-1258
 
Language lit
 
Relation http://www.zurnalai.vu.lt/ekonomika/article/view/9910/7750
 
Rights Autorinės teisės (c) 2016 Ekonomika