FINANCIAL FAILURE ESTIMATE IN BIST COMPANIES WITH ALTMAN (Z-SCORE) AND SPRINGATE (S-SCORE) MODELS

Year 2017, Volume: 1 Issue: 1, 1 - 14, 30.06.2017

Erdem Kürklü , Zeynep Türk

Abstract

The aim of this paper is to measure financial failure level of 7
different sector which is on the BIST index in the period of 2014-2016 and
enable to compare the level of financial failure by years.  Thus, 
it is to test whether any leading indicator, which gives early warning
in detection of companys financial failure exists or not. In this sense,
financial data of 166 companies which are registered in BIST comprises the
sample of the study. The acquired data was measured by the easily computable
and understandable Altman (Z-Score) and Springate (S-Score) models, which give
successful results in forecasting the bankruptcy and financial failures. As a
result of the analysis, Altman model shows that 115 (%69) out of 166 companies
are not under financial stress while Springate model demonstrates that 95 (%57)
companies. Both of the models indicate different levels of financial failure.
Hovewer, similar results are found when analysis of companies are made by
years.

Keywords

BIST, Financial Failure, Altman, Springate

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