BANKRUPTCY PREDICTION MODELS FOR LARGE AGRICULTURAL AND FOOD COMPANIES IN AP VOJVODINA
DOI:
https://doi.org/10.5937/ekoPolj2103805MKeywords:
Altman Z-score, Kralicek DF, Kralicek Quick test, agriculture, food industryAbstract
The aim of this paper is to present application of different methods used for predicting bankruptcy of large agricultural and food companies in AP Vojvodina, as well as to determine which model is the most suitable for analyzing the companies from the observed sectors. The following three models were applied in the paper: Altmans Z-score model, Kralicek DF indicators and Kralicek Quick test. The analysis included five companies from the agricultural sector and five companies from the food sector operating on the territory of AP Vojvodina in the period from 2015 to 2019. The results of the research based on the applied models showed that different conclusions can be made about the financial stability of the observed companies. Altmans Z-score model provided the most rigorous forecast in terms of the bankruptcy risk, while the results of Kralicek DF indicators and Quick test are relatively similar.
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References
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2. Altman, I. E. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance, 23(4), 589-609. https://doi.org/10.1111/j.1540-6261.1968.tb00843.x
3. Altman, E.I. (1983). Corporate Financial Distress, New York, Wiley InterScience.
4. Altman, E.I., Hartzell, J. & Peck, M. (1995). Emerging Markets Corporate Bonds: A scoring system. In Levich R.M. Emerging Market Capital Flows. The New York University Salomon Center Series on Financial Markets and Institutions, 2, 391- 400. https://doi.org/10.1007/978-1-4615-6197-2_25
5. Apan, M., Öztel, A., & İslamoğlu, M. (2018). Comparative Emprical Analysis of Financial Failures of Enterprises with Altman Z-score and VIKOR Methods: BIST Food Sector Application. Australasian Accounting, Business and Finance Journal, 12(1), 77-101. https://doi.org/10.14453/aabfj.v12i1.6
6. Bărbuță-Mișu, N., & Madaleno, M. (2020). Assessment of Bankruptcy Risk of Large Companies: European Countries Evolution Analysis. Journal of Risk and Financial Management, 13(58). https://doi.org/10.3390/jrfm13030058
7. Burja, C., & Burja, V. (2013). Entrepreneurial risk and performance: empirical evidence of Romanian agricultural holdings. Annales Universitatis Apulensis Series Oeconomica, 15(2), 561-569.
8. Didenko, K., Meziels, J., & Voronova, I. (2012). Assessment of enterprises insolvency: challenges and opportunities. Economics and Management, 17(1), 69-76. https://doi.org/10.5755/j01.em.17.1.2253
9. Domanović, V., Vujičić, M., & Ristić, L. (2018). Profitability of food industry companies in the Republic of Serbia. Economics of Agriculture, 65(1), 11-32. https://doi.org/10.5937/ekoPolj1801011D
10. Godišnji izveštaj o poslovanju privrede (2020), Retrieved from http://www.apr.gov.rs (January 12, 2020). [in English: Annual Report on Business Operations (2020), Retrieved from http://www.apr.gov.rs (January 12, 2020).]
11. Jakovčević, K., & Andrašević, J. (2011). Indikatori poteškoća u funkcionisanju industrijskog preduzeća. Industrija, 39(3), 175-192. [in English: Jakovčević, K., & Andrašević, J. (2011). Indicators of difficulties in functioning industrial enterprise. Industry, 39(3), 175-192.]
12. Kovács, S., Fróna, D., & Rózsa, A. (2020). Analysing the situation of agricultural enterprises in liquidation by means of bankruptcy prediction models. SEAPractiacal Application of Science, 8(2), 23-31.
13. Novaković, T. (2019). Analiza bruto dodate vrednosti poljoprivrede u Republici Srbiji. Ekonomske ideje i praksa, (32), 39-55. [in English: Novaković, T. (2019). The analysis of gross value added of agricultural production in the republic of Serbia. Economic ideas and practices, (32), 39-55.]
14. Scoring System, Salomon Brothers Inc. New York. Stock Exchange. Banking, 3, 70-95.
15. Stojanović, T., & Drinić, Lj. (2017). Applicability of Z-score Models on the Agricultural Companies in the Republic of Srpska (Bosnia and Herzegovina).Agroknowledge Journal, 18(4), 227-236. https://doi.org/10.7251/AGREN1704227S
16. Stošić, I. (2019). An assessment of the financial (un)success of medium-sized enterprises in the Republic of Serbia, Revizor, 22(87-88), 33-39.
17. Stošić, I., & Domazet, I. (2014). Analiza konkurentnosti poslovanja i potencijali rasta privrede Srbije u period svetske krize, TEME: časopis za društvenu teoriju i praksu, 38(2), 491-506. [in English: Stošić, I., & Domazet, I. (2014). Analysis of business competitiveness and the growth potential of Serbian economy during the global crisis. Teme, 38(2), 491-506.]
18. Šverko-Grdić, Z., Krstinić-Nižić, M., & Mamula, M. (2017). Insolvency in the Republic of Croatia. Economic Research, 30(1), 1693-1704. https://doi.org/10.1080/1331677X.2017.1383177
19. Vučković, B. (2014). Značaj pojedinih indikatora poslovanja određenim grupama analitičara. Ekonomija, teorija i praksa, 7(1), 19-49. [in English: Vučković, B. (2014). The importance of some performance indicators for certain groups of analysts. Economics, theory and practice, 7(1), 19-49. ]
20. Vukadinović, P., Vujović, S., & Vojnović, B. (2018). Analysis of the financial position of enterprises in privatization in the agricultural sector in Serbia.Economics of Agriculture, 65(3), 955-970. https://doi.org/10.5937/ekoPolj1803955V
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Published
2021-09-25
How to Cite
Milić, D., Tekić, D., Zekić, V., Novaković, T., Popov, M., & Mihajlov, Z. (2021). BANKRUPTCY PREDICTION MODELS FOR LARGE AGRICULTURAL AND FOOD COMPANIES IN AP VOJVODINA. Ekonomika Poljoprivrede, 68(3), 805–822. https://doi.org/10.5937/ekoPolj2103805M
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