Title: Failure prediction models for Slovak small companies

Authors: Lucia Svabova; Marek Durica; Katarina Valaskova

Addresses: Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia ' Department of Quantitative Methods and Economic Informatics, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia ' Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia

Abstract: Prediction of the financial difficulties of companies has been over the last years dealt with by scientists and economists in many countries over the world. Several prediction models, mostly focused on a particular sector of the national economy, have so far been created also in Slovakia. The most common methods usually used to derive prediction models include, among others, discriminant analysis and logistic regression. The main aim of this paper is to create new prediction models for small companies in Slovakia using these two statistical methods. These predictive models are created by using real data for Slovak small companies coming from Amadeus database. The results of these models can be used to classify a company into the group of prosperous companies or into the group of companies threatened by bankruptcy, based on the company financial results.

Keywords: company's failure; Slovak companies; prediction models; bankruptcy prediction; discriminant analysis; logistic regression; international management; failure prediction; small companies.

DOI: 10.1504/EJIM.2022.126164

European Journal of International Management, 2022 Vol.18 No.4, pp.617 - 637

Received: 12 Jul 2018
Accepted: 30 Dec 2018
Published online: 14 Oct 2022 *

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