Family Businesses in Global Economy and Evaluating their Financial Health Using Bankruptcy Models
Open Access
- 16 December 2021
- journal article
- research article
- Published by EDP Sciences in SHS Web of Conferences
- Vol. 129, 03031
- https://doi.org/10.1051/shsconf/202112903031
Abstract
Research background: Predicting and assessing financial health should be one of the most important activities for each business especially in context of turbulent business environment and global economy. The financial sustainability of family businesses has a direct and significant influence on the development and growth of the economy because they still represent the backbone of the economy and play an important role in national economies worldwide accounting.Purpose of the article: We used in this article the financial distress and bankruptcy prediction models for assessing financial status of family businesses in agricultural sector. The aim of the paper is to compare models developed by using three different methods to identify a model with the highest predictive accuracy of financial distress and assess financial health.Methods: The data was obtained from Finstat database. For assessing the financial health of selected family businesses bankruptcy models were used: Chrastinova’s CH-Index, Gurcik’s G-Index (defined for Slovak agricultural enterprises) and Altman Z-score.Findings & Value added: This article summarizes existing models and compares results of assessing financial health of family businesses using three different models.This publication has 19 references indexed in Scilit:
- Prediction of financial distress in the Spanish banking systemApplied Economic Analysis, 2019
- Business failure prediction using cart-based model: A case of Slovak companiesEkonomicko-manazerske spektrum, 2019
- Do Traditional Financial Distress Prediction Models Predict the Early Warning Signs of Financial Distress?Journal of Risk and Financial Management, 2019
- Family firms and access to credit. Is family ownership beneficial?Journal of Banking & Finance, 2019
- Bankruptcy prediction using imaged financial ratios and convolutional neural networksExpert Systems with Applications, 2018
- Review of Research into Enterprise Bankruptcy Prediction in Selected Central and Eastern European CountriesInternational Journal of Financial Studies, 2018
- Prediction Techniques of Agriculture Enterprises FailureProcedia Economics and Finance, 2014
- Founding‐Family Ownership, Corporate Diversification, and Firm LeverageThe Journal of Law and Economics, 2003
- Family FirmsThe Journal of Finance, 2003
- FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCYThe Journal of Finance, 1968