This paper presents investigations of bankruptcy predicting models which can be useful for external users of a financial statement. Only the methods of financial analysis for insolvency prediction, useful on the basis...This paper presents investigations of bankruptcy predicting models which can be useful for external users of a financial statement. Only the methods of financial analysis for insolvency prediction, useful on the basis of financial statements, were investigated. The paper studied the influence of insolvency on the development of the Latvian Economy, including such relevant points： dynamics of number of insolvency cases in Latvia, data of the payment discipline of debts, tax liabilities of the insolvent companies, dynamics of unemployment support payments. Empirical investigations shows that only Altman＇s Z＇＂ and Fulmer＇s H models demonstrate accuracy above 80% in all analyzed business sectors and they are applicable for Latvian companies. The other models are useful to some particular business sector.展开更多
文摘This paper presents investigations of bankruptcy predicting models which can be useful for external users of a financial statement. Only the methods of financial analysis for insolvency prediction, useful on the basis of financial statements, were investigated. The paper studied the influence of insolvency on the development of the Latvian Economy, including such relevant points： dynamics of number of insolvency cases in Latvia, data of the payment discipline of debts, tax liabilities of the insolvent companies, dynamics of unemployment support payments. Empirical investigations shows that only Altman＇s Z＇＂ and Fulmer＇s H models demonstrate accuracy above 80% in all analyzed business sectors and they are applicable for Latvian companies. The other models are useful to some particular business sector.
