The practice of use of models predicting financial distress in Slovak companies
DOI:
https://doi.org/10.15549/jeecar.v7i1.369Keywords:
financial analysis, models predicting financial distress, Slovak companiesAbstract
The aim of the paper is to present the results of the research focused on the identification of the current situation concerning the knowledge and use of the models predicting financial distress in Slovak companies. In the paper three partial goals are formulated. On grounds of the goals of this paper four hypotheses were formulated. Their validity was verified by means of the primary data gained by the questionnaire research with the use of the statistical software. The research results confirmed that Slovak companies did not know the term “models predicting financial distress” neither applied them in practice. The main reasons why they do not apply them involve not knowing them, the company size (too small company) and the use of some own prediction methods. The most often used models are simple methods of point evaluation in business practice. Companies prefer simple methods not demanding of much time.
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