<abstract xmlns="http://www.w3.org/1999/xhtml"><p> Company bankruptcies are an inseparable element of market economy. We may observe the tendency to view bankruptcy as a problem of weak and usually small entities facing problems when trying to meet the challenge posed by strong competition. Big companies, however, also fall, and their bankruptcy cannot be predicted by even the most experienced analysts. The aim of the article is to examine the effectiveness of the bankruptcy prediction models in case of sudden bankruptcies, on the example of Gant Development S.A. The author attempts to classify the real estate developer’s bankruptcy as “staged” bankruptcy by performing an analysis of company activities in the period of 2010-2013. The study was conducted using Polish models of linear discriminant analysis, widely popular in the Polish literature as well as the models which reflect the branch specificity of the examined entity.</p></abstract>

Company bankruptcies are an inseparable element of market economy. We may observe the tendency to view bankruptcy as a problem of weak and usually small entities facing problems when trying to meet the challenge posed by strong competition. Big companies, however, also fall, and their bankruptcy cannot be predicted by even the most experienced analysts. The aim of the article is to examine the effectiveness of the bankruptcy prediction models in case of sudden bankruptcies, on the example of Gant Development S.A. The author attempts to classify the real estate developer’s bankruptcy as “staged” bankruptcy by performing an analysis of company activities in the period of 2010-2013. The study was conducted using Polish models of linear discriminant analysis, widely popular in the Polish literature as well as the models which reflect the branch specificity of the examined entity.

Gant Development SA – The Effectiveness of Bankruptcy Prediction Models in Case of Sudden Bankruptcy. Case Study

Ulyana Dzyuma-Zaremba, Chair of Finance, UITM in Rzeszow,

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Company bankruptcies are an inseparable element of market economy. We may observe the tendency to view bankruptcy as a problem of weak and usually small...

Gant Development SA – The Effectiveness of Bankruptcy Prediction Models in Case of Sudden Bankruptcy. Case Study

Published Online: Feb 08, 2017

Page range: 45 - 57

Received: Aug 20, 2015

Accepted: Dec 17, 2015

DOI: https://doi.org/10.1515/fiqf-2016-0118

Keywords
bankrupcy prediction, discriminant analysis, planned abnkrupcy, financial distress

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Gant Development SA – The Effectiveness of Bankruptcy Prediction Models in Case of Sudden Bankruptcy. Case Study

Published Online: Feb 08, 2017

Page range: 45 - 57

Received: Aug 20, 2015

Accepted: Dec 17, 2015

DOI: https://doi.org/10.1515/fiqf-2016-0118

Keywordsbankrupcy prediction, discriminant analysis, planned abnkrupcy, financial distress

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
bankrupcy prediction, discriminant analysis, planned abnkrupcy, financial distress