<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The research was conducted with the aim of finding a model that best predicts the financial success or failure of the company. On the sample of 392 SME in Bosnia and Herzegovina, testing possibilities using the innovated Altman’s model for prediction of financial difficulties of the enterprise was carried out. The financial statements from the end of the year 2014 of these companies were reviewed. The sample was divided into two groups: companies that had blocked transaction accounts during 2015 and 2016 and those companies that did not have blocked transaction accounts during this period. Testing has shown that the Altman’s model may, but with limited capability, be used to predict the disruption of small and medium-sized businesses in Bosnia and Herzegovina. The paper presents the facts that affect the business of SME in Bosnia and Herzegovina, and way they influence selection and, possibly, other predictors of non-business operations</p></abstract>

The research was conducted with the aim of finding a model that best predicts the financial success or failure of the company. On the sample of 392 SME in Bosnia and Herzegovina, testing possibilities using the innovated Altman’s model for prediction of financial difficulties of the enterprise was carried out. The financial statements from the end of the year 2014 of these companies were reviewed. The sample was divided into two groups: companies that had blocked transaction accounts during 2015 and 2016 and those companies that did not have blocked transaction accounts during this period. Testing has shown that the Altman’s model may, but with limited capability, be used to predict the disruption of small and medium-sized businesses in Bosnia and Herzegovina. The paper presents the facts that affect the business of SME in Bosnia and Herzegovina, and way they influence selection and, possibly, other predictors of non-business operations

Innovated Altman’s Model as a Predictor of Malfunctioning of Small and Medium-Sized Businesses in Bosnia and Herzegovina

Economic Themes

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

The research was conducted with the aim of finding a model that best predicts the financial success or failure of the company. On the sample of 392 SME in...

Innovated Altman’s Model as a Predictor of Malfunctioning of Small and Medium-Sized Businesses in Bosnia and Herzegovina

Publicado en línea: 04 may 2020

Páginas: 21 - 33

Recibido: 03 may 2018

Aceptado: 28 mar 2019

DOI: https://doi.org/10.2478/ethemes-2019-0002

Palabras clave
prediction, SME, Altman’s model, financial failure, business distress, financial indicator

© 2019 Selma Vidimlić, published by Sciendo

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

Innovated Altman’s Model as a Predictor of Malfunctioning of Small and Medium-Sized Businesses in Bosnia and Herzegovina

Publicado en línea: 04 may 2020

Páginas: 21 - 33

Recibido: 03 may 2018

Aceptado: 28 mar 2019

DOI: https://doi.org/10.2478/ethemes-2019-0002

Palabras claveprediction, SME, Altman’s model, financial failure, business distress, financial indicator

© 2019 Selma Vidimlić, published by Sciendo

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

Palabras clave
prediction, SME, Altman’s model, financial failure, business distress, financial indicator