This study tests the accuracy of the Altman bankruptcy prediction model for a\nwide private companies� sample that went bankrupt in the years 1985 to 2013.\nFinancial ratios used in the model calculations, Z�-Score (Altman�s Z for private\ncompanies) also provide useful information on the solvency and probability\nof bankruptcy for privately held companies from the sample. The findings\ndo not support the assertion that the Z�-Score can be generalized to\ncountries and sectors different from industrial sector. The general number of\nbankruptcies may be an antecedent variable to certain economic and/or financial\ncrises, but the results indicate a correct identification of bankruptcy\nrisk only to two thirds of the sample of companies.
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