SHS Web Conf.
Volume 129, 2021The 21st International Scientific Conference Globalization and its Socio-Economic Consequences 2021
|Number of page(s)||8|
|Section||Financial Management and Financial Markets|
|Published online||16 December 2021|
Family Businesses in Global Economy and Evaluating their Financial Health Using Bankruptcy Models
University of Economics in Bratislava, Faculty of Business Management, Dolnozemska cesta 1/b, 852 35 Bratislava, Slovakia
* Corresponding author: firstname.lastname@example.org
Research background: Predicting and assessing financial health should be one of the most important activities for each business especially in context of turbulent business environment and global economy. The financial sustainability of family businesses has a direct and significant influence on the development and growth of the economy because they still represent the backbone of the economy and play an important role in national economies worldwide accounting.
Purpose of the article: We used in this article the financial distress and bankruptcy prediction models for assessing financial status of family businesses in agricultural sector. The aim of the paper is to compare models developed by using three different methods to identify a model with the highest predictive accuracy of financial distress and assess financial health.
Methods: The data was obtained from Finstat database. For assessing the financial health of selected family businesses bankruptcy models were used: Chrastinova’s CH-Index, Gurcik’s G-Index (defined for Slovak agricultural enterprises) and Altman Z-score.
Findings & Value added: This article summarizes existing models and compares results of assessing financial health of family businesses using three different models.
Key words: family businesses; / financial health; / bankruptcy model; / Altman Z- score
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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