Title: Financial analysis considering distress prediction models of telecommunications companies listed in Athens Stock Exchange: Hellenic Telecommunications Organization, Forthnet, Hellas Online
Authors: Thomas D. Lagkas; Dimitrios Papadopoulos
Addresses: Computer Science Department, The University of Sheffield International Faculty, CITY College, 546 26 Thessaloniki, Greece ' Department of Accounting and Finance, University of Macedonia, 546 36 Thessaloniki, Greece
Abstract: Within over a decade of liberalisation of the Greek telecommunications market and given the current adverse conditions caused by the economic crisis, a limited number of companies managed to survive and relatively stabilise their market position. On one hand, this paper constitutes a comprehensive financial analysis of the Greek telecommunications companies that are currently listed in the Athens Stock Exchange. The respective companies are: Hellenic Telecommunications Organization (OTE), Forthnet, and Hellas Online (HOL). These companies' financial data over the past five years, from 2008 to 2012, are analysed using universally accepted methods. On the other hand, this work presents a relatively original approach of analysing companies' survivability, by combining the four widely accepted distress prediction models of Altman, Springate, Ohlson, and Zmijewski. In this manner, criticism on the credibility and applicability of this model on the specific field is also provided.
Keywords: financial analysis; telecommunications industry; Athens Stock Exchange; ASE; Greece; economic crisis; distress prediction models; OTE; Forthnet; HOL; company survivability; modelling.
International Journal of Decision Sciences, Risk and Management, 2014 Vol.5 No.4, pp.376 - 397
Received: 11 Jun 2014
Accepted: 24 Sep 2014
Published online: 18 Mar 2015 *