THE USAGE OF Z-SCORE MODEL AS BANKRUPTCY PREDICTION MODEL AND AN APLICATION TO COMPANIES OF KAZAKHSTAN

Year 2011, Volume: 7 Issue: 13, 289 - 314, 01.06.2011

Osman Şahin Aidarkhan Altey

Abstract

Corporate bankruptcy is a subject of extensive research, and since 1960‟s a number of models were developed to predict failures in the real world. The most prominent research was done by Dr. Edward Altman, who developed Z-score model in 1968 for the US companies, which has been extensively used by practitioners. In this model a set of financial ratios specific to a company are analyzed in order to give a judgment on the company‟s likelihood to go bankrupt. The goal of this paper is to see the efficiency of Altman‟s bankruptcy prediction model to Kazakhstan market. The model is built based on financial variables which are derived from financial statements of companies listed on Kazakhstan Stock Exchange KASE

Keywords

Bankruptcy Prediction Models, Altman Z-Score, Kazakhstan

Z-SCORE MODELİNİN İFLAS TAHMİN METODU OLARAK KULLANIMI VE KAZAKİSTAN ŞİRKETLERİNE YÖNELİK BİR UYGULAMA

Abstract

Corporate bankruptcy is a subject of extensive research, and since 1960’s a number of models were developed to predict failures in the real world. The most prominent research was done by Dr. Edward Altman, who developed Z-score model in 1968 for the US companies, which has been extensively used by practitioners. In this model a set of financial ratios specific to a company are analyzed in order to give a judgment on the company’s likelihood to go bankrupt. The goal of this paper is to see the efficiency of Altman’s bankruptcy prediction model to Kazakhstan market. The model is built based on financial variables which are derived from financial statements of companies listed on Kazakhstan Stock Exchange KASE .

Keywords

İflas Tahmin Modelleri, Altman Z-Score, Kazakistan.

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