Predicting bankruptcy in construction business: Traditional model validation and formulation of a new model

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dc.contributor.authorKaras, Michalcs
dc.contributor.authorSrbová, Pavlacs
dc.coverage.issue1cs
dc.coverage.volume12cs
dc.date.issued2019-03-30cs
dc.description.abstractWhen predicting bankruptcy of a company basing on its financial statements, the line of business in which the company is operating plays a significant role in terms of prediction accuracy. This accuracy is particularly crucial to banks and businesses which realise sales mostly on credit. The failure to recognise a client’s or business partner’s financial difficulties or the threat of bankruptcy with sufficient accuracy could lead to significant losses. Bankruptcy prediction models are used for these purposes. Most of the models created have been dedicated to the branch of manufacturing, while the branch of construction is relatively neglected by the mainstream literature. Traditional bankruptcy prediction models cannot be used effectively due to specifics of construction business. The aim of this paper is to test the current accuracies of five selected bankruptcy models in predicting the bankruptcy of construction companies. An additional aim is to create a new model designed specifically for this branch. The research was conducted on the sample of Czech companies. The method of Receiver Operating Characteristic was applied as the measure of accuracy for testing the models. The model created during the course of this research achieved an accuracy higher by 3.6 to 8 percent than the traditional models tested.en
dc.formattextcs
dc.format.extent283-296cs
dc.format.mimetypeapplication/pdfcs
dc.identifier.citationJOURNAL OF INTERNATIONAL STUDIES. 2019, vol. 12, issue 1, p. 283-296.en
dc.identifier.doi10.14254/2071-8330.2019/12-1/19cs
dc.identifier.issn2306-3483cs
dc.identifier.orcid0000-0001-8824-1594cs
dc.identifier.orcid0000-0003-4076-9829cs
dc.identifier.other156419cs
dc.identifier.researcheridC-1261-2018cs
dc.identifier.researcheridGDA-5683-2022cs
dc.identifier.scopus55321000300cs
dc.identifier.urihttp://hdl.handle.net/11012/178352
dc.language.isoencs
dc.publisherCentre of Sociological Researchcs
dc.relation.ispartofJOURNAL OF INTERNATIONAL STUDIEScs
dc.relation.urihttps://www.jois.eu/?505,en_predicting-bankruptcy-in-construction-business-traditional-model-validation-and-formulation-of-a-new-modelcs
dc.rightsCreative Commons Attribution 4.0 Internationalcs
dc.rights.accessopenAccesscs
dc.rights.sherpahttp://www.sherpa.ac.uk/romeo/issn/2306-3483/cs
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/cs
dc.subjectbankruptcy prediction modelen
dc.subjectmodel accuracyen
dc.subjectCzech Republicen
dc.subjectconstruction businessen
dc.titlePredicting bankruptcy in construction business: Traditional model validation and formulation of a new modelen
dc.type.driverarticleen
dc.type.statusPeer-revieweden
dc.type.versionpublishedVersionen
sync.item.dbidVAV-156419en
sync.item.dbtypeVAVen
sync.item.insts2025.02.03 15:43:14en
sync.item.modts2025.01.17 18:47:15en
thesis.grantorVysoké učení technické v Brně. Fakulta podnikatelská. Ústav financícs
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