Z-score model is one of the most frequently used model for early financial failure warning and\r\nconsiders various financial ratios selected as prediction variables.The purpose of this paper is to\r\nuse multivariant discriminant analysis (MDA) to substantiate a score function effective in\r\nbankruptcy risk prediction of enterprises on Romanian economy example. In order to discriminate\r\nbetween bankrupt and non-bankrupt in the scoring model we used relevant financial ratios related\r\nto activity, liquidity, leverage and profitability. The weighting coefficients established between\r\nindependent variables and the objective function-score, are determined by using statistical tools. In\r\nthis context, the article aims to build a scoring function in order to identify bankrupt companies,\r\nusing a sample of companies listed on Bucharest Stock Exchange. The results in this article can be\r\nused to appraise the effectiveness of applying MDA financial failure models for Romanian\r\ncompanies, to make an idea about curent and future financial situation, and take, if necessary,\r\ncorrective measures.
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