The Altman Z-score Revisited

Posted: 4 Feb 2005

See all articles by Robert W. Russ

Robert W. Russ

Virginia Commonwealth University (VCU) - Department of Accounting

Wendy W. Peffley

Virginia Commonwealth University (VCU) - Department of Accounting

Alfred C. Greenfield

Virginia Commonwealth University (VCU) - Department of Accounting

Date Written: January 6, 2004

Abstract

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

Russ, Robert W. and Peffley, Wendy W. and Greenfield, Alfred C., The Altman Z-score Revisited (January 6, 2004). Available at SSRN: https://ssrn.com/abstract=551061 or http://dx.doi.org/10.2139/ssrn.551061

Robert W. Russ (Contact Author)

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States
804-828-7128 (Phone)
804-828-8884 (Fax)

Wendy W. Peffley

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States
804-828-7128 (Phone)
804-828-8884 (Fax)

Alfred C. Greenfield

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States
804-828-7128 (Phone)
804-828-8884 (Fax)

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