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StatConsulting participated in a prestigious Credit Scoring and Credit Control XI Conference which was held between 26th and 28th of August in Edinburgh.
The subject of our presentation concerned the construction of rating based on bankruptcy prediction model.
Development of a tool for effective prediction of firms' bankruptcy has interested economists since the thirties of the 20th century. The known models which were built during that period and later on used new analytical techniques including Altman model (1968) and its modifications. This model, although constructed based on data describing bankrupted companies from the USA, is still used thanks to its generality. Many models based on “local” data were also available. Their aim was to describe the specificity of the economy in which companies operated. However, the problem in construction of efficient bankruptcy prediction model often concerns insufficient amount or quality of available data.
In Poland, there is a significant interest in reliable assessment of a company financial standing, especially medium and large enterprises. Among those interested in rating are, for instance, banks or companies willing to better evaluate the cooperation possibilities with potential business partner.
During our presentation we showed the results of an analytical project, which aim was not only to construct a bankruptcy prediction model, but also to verify the effectiveness of Altman model.
Organizer: Credit Research Centre
Previous conferences:
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