Default Prediction Model for SME’s: Evidence from UK Market Using Financial Ratios
- Huijuan Lin
Abstract
The paper discusses bankruptcy prediction model in the UK during the two last decades. My study is provided to support that the Original Altman’s Z-score (1968) might not valid to predict bankruptcy since the business environment changed a lot. However, there are many firms go to bankrupt recently and there is a need to study and improve the bankruptcy predictive ability. And the result shows that Altman’s Z-score has little predictiveability in bankruptcy prediction. Then, I use the recent data to renew the Z-score model by changing the coefficient of original Z-score. After compared to the original Altman’s Z-score model, I found that the renewed Z-score model has been improve to a reasonable accuracy rate. In addition, I found that the variable (Sales/ total assets) has little contribution to distinguishing the bankrupt and non-bankrupt firms.- Full Text:
PDF
- DOI:10.5539/ijbm.v10n2p81
Journal Metrics
h-index(2019): 93
i10-index(2019): 827
h5-Index(2019): 30
h5-Media(2019): 45
Index
- Academic Journals Database
- AIDEA list (Italian Academy of Business Administration)
- ANVUR (Italian National Agency for the Evaluation of Universities and Research Institutes)
- COPAC
- EBSCOhost
- Electronic Journals Library
- Elektronische Zeitschriftenbibliothek (EZB)
- EuroPub Database
- Excellence in Research for Australia (ERA)
- Genamics JournalSeek
- GETIT@YALE (Yale University Library)
- IBZ Online
- Infotrieve
- JournalTOCs
- Library and Archives Canada
- LOCKSS
- MIAR
- National Library of Australia
- NewJour
- Norwegian Centre for Research Data (NSD)
- Open J-Gate
- OskiCat (UCB Library)
- PKP Open Archives Harvester
- Publons
- RePEc
- ROAD
- Scilit
- SHERPA/RoMEO
- Standard Periodical Directory
- StarPlus (UoS Library)
- UCR Library
- Ulrich's
- Universe Digital Library
- WorldCat
- ZBW-German National Library of Economics
Contact
- Stephen LeeEditorial Assistant
- ijbm@ccsenet.org