- Resumes Atlman Z-score history
- Z’’-score does not take explicitly account of the age of a firm. However Altman (1983) noted that the age of a firm is implicitly considered in the retained earnings/total asset ratio that was regarded as a new ratio of bankruptcy.
- Relatively young firms will probably show low ratio because they didn’t have time to build up cumulative profits
- Evidence form this study shows that the original Z’’-score performs well in an international context. More efficiency can however be extracted from country level using the four original variables plus additional background variables
Distressed Firm and Bankruptcy prediction in an international context
Original by Altman, Malgorzata, 2014, 47 pages
This summary note was posted on 16 January 2017, by Reinie
in Credit risk Finance
Latest Hamster Notes
- Prompting and some terminologies posted in AI and gen
- Power BI posted in Excel & PowerBI
- Measure what Matters posted in Management
- PSPO I posted in Agile
- Stuff on Scrum posted in Agile
- 3 tips to create a courageous space posted in Management
- The Lean Strategy posted in Management Personal Development
- 6 traits of an inclusive leader posted in Management
- Myers Briggs Type Indicator posted in Personal Development
- Positive Influence posted in Management