A Study of Applicability of Bankruptcy Prediction Models for Small Businesses
Proceedings of the 31st International Business Information Management Association Conference, IBIMA 2018: Innovation Management and Education Excellence through Vision 2020 с. 2250-2255
7 Pages Posted: 9 Oct 2020
Date Written: August 1, 2018
The paper investigates predictive ability of existing bankruptcy prediction models suitable for small business by using dates of accounting report of Russian’s firms. Combination of financial ratios analysis with bankruptcy prediction models’ testing made it possible to identify the models showing high predictive ability. Study also provides applicable model for small business. The study is based on financial statements data about one hundred enterprises of small businesses, divided two types: failed and non-failed firms. The results of the study would be useful to many users such as financial analysts, board of small enterprises, lenders, auditors, tax inspectors.
Keywords: bankruptcy prediction models, financial ratios, small business
JEL Classification: C51, C53, C58, C65, C83, G32, G33, O16
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