Bankruptcy Prediction, Financial Distress and Corporate Life Cycle: Case Study of Central European Enterprises

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I publikationen:Administrative Sciences vol. 15, no. 2 (2025), p. 63
Huvudupphov: Michalkova, Lucia
Övriga upphov: Ponisciakova, Olga
Utgiven:
MDPI AG
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022 |a 2076-3387 
024 7 |a 10.3390/admsci15020063  |2 doi 
035 |a 3170833993 
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100 1 |a Michalkova, Lucia 
245 1 |a Bankruptcy Prediction, Financial Distress and Corporate Life Cycle: Case Study of Central European Enterprises 
260 |b MDPI AG  |c 2025 
513 |a Journal Article 
520 3 |a Businesses are influenced by the cyclical nature of economic development and distinct stages in the corporate life cycle. Accurate early-warning mechanisms are crucial to mitigating bankruptcy risk, enabling timely rescue measures. This article analyses the reliability of various bankruptcy prediction models, including those by Kliestik et al., Poznanski, the modified Zmijewski, Jakubik–Teply, and Virag–Hajdu, across corporate life cycle stages. Reliability was assessed using five metrics: accuracy, balanced accuracy, F1 and F2 scores, and the Matthews correlation coefficient (MCC). The sample included over 5000 SMEs from Central Europe, with financial data from 2022. The findings reveal a U-shaped trend in financial distress risk, with start-ups and declining enterprises facing the highest risks. The results indicate that the Kliestik et al. model shows consistent reliability across all life cycle stages, while the Poznanski model shows more variability. Conversely, the Virag–Hajdu model exhibits significant variability in reliability, with its best performance observed during the Decline stage. The modified Zmijewski and Jakubik–Teply models show lower MCC values overall, with the modified Zmijewski model performing better at predicting the financial distress of mature shake-out firms compared to other stages. 
653 |a Dividends 
653 |a Bankruptcy 
653 |a Investments 
653 |a Costs 
653 |a Debt restructuring 
653 |a Economic conditions 
653 |a Profits 
653 |a Product life cycle 
653 |a Financial performance 
653 |a Venture capital 
653 |a Insolvency 
653 |a Solvency 
653 |a Cash flow forecasting 
653 |a Profitability 
653 |a Prediction models 
653 |a Reliability 
653 |a Case studies 
653 |a Life cycles 
653 |a Psychological distress 
653 |a Economic development 
653 |a Variability 
653 |a Accuracy 
700 1 |a Ponisciakova, Olga 
773 0 |t Administrative Sciences  |g vol. 15, no. 2 (2025), p. 63 
786 0 |d ProQuest  |t ABI/INFORM Global 
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