Altman Z-Score Model for Bankruptcy Forecasting of the Listed Lithuanian Agricultural Companies

DOI

10.2991/icaat-16.2016.23How to use a DOI?

Keywords

Corporate bankruptcy, prediction models, statistical prediction models; organizational theory

Abstract

Since development in 1968, Altman's Z-score has been widely used to judge the risk of financial failure by companies in various countries, industries, and time-periods. The purpose of this paper is to apply Altman's Z-score model for bankruptcy prediction on the three listed Lithuanian agricultural companies. Agribusiness is an important industry in Lithuania and recent trends of consolidation and long-term government subsidies make evaluation of financial health of such companies important not only for the owners, but for the other stakeholders as well. The study has found that the model correctly places companies into "safe" and "grey" zones, which gives initial information for the stakeholders. Further exploratory study into the financial and non-financial factors constituting Z-score could provide additional information for forecasting firm's performance.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Vaiva Kiaupaite-Grushniene
PY  - 2016/12
DA  - 2016/12
TI  - Altman Z-Score Model for Bankruptcy Forecasting of the Listed Lithuanian Agricultural Companies
BT  - Proceedings of the 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)
PB  - Atlantis Press
SP  - 222
EP  - 234
SN  - 2352-5428
UR  - https://doi.org/10.2991/icaat-16.2016.23
DO  - 10.2991/icaat-16.2016.23
ID  - Kiaupaite-Grushniene2016/12
ER  -