The Altman Z-Score Revisited
Posted: 6 Apr 2004
Date Written: January 6, 2004
This study replicates the research that created the Altman z-score measure of bankruptcy. To eliminate criticisms of the original study, this study uses a large sample, data from recent years, additional statistical methods, and eliminates the matched pair design of the original study, to rescale the z-score. This rescaling of the z-score greatly improves the predictive power of the measure and predicting bankruptcy for more than two years prior to bankruptcy filing.
Keywords: Bankrutpcy, Financial Distress, Altman Z
JEL Classification: G33
Suggested Citation: Suggested Citation