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Financial Risk Measurement and Prediction Modelling for Sustainable Development of Business Entities Using Regression Analysis

Author

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  • Katarina Valaskova

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Tomas Kliestik

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Lucia Svabova

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

  • Peter Adamko

    (Faculty of Operation and Economics of Transport and Communications, University of Zilina, Univerzitna 1, 010 26 Zilina, Slovakia)

Abstract

The issue of the debt, bankruptcy or non-bankruptcy of a company is presented in this article as one of the ways of conceiving risk management. We use the Amadeus database to obtain the financial and accounting data of Slovak enterprises from 2015 and 2016 to calculate the most important financial ratios that may affect the financial health of the company. The main aim of the article is to reveal financial risks of Slovak entities and to form a prediction model, which is done by the identification of significant predictors having an impact on the health of Slovak companies and their future prosperity. Realizing the multiple regression analysis, we identified the significant predictors in conditions of the specific economic environment to estimate the corporate prosperity and profitability. The results gained in the research are extra important for companies themselves, but also for their business partners, suppliers and creditors to eliminate financial and other corporate risks related to the unhealthy or unfavorable financial situation of the company.

Suggested Citation

  • Katarina Valaskova & Tomas Kliestik & Lucia Svabova & Peter Adamko, 2018. "Financial Risk Measurement and Prediction Modelling for Sustainable Development of Business Entities Using Regression Analysis," Sustainability, MDPI, vol. 10(7), pages 1-15, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2144-:d:154028
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    References listed on IDEAS

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    Cited by:

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    15. Youssef Zizi & Mohamed Oudgou & Abdeslam El Moudden, 2020. "Determinants and Predictors of SMEs’ Financial Failure: A Logistic Regression Approach," Risks, MDPI, vol. 8(4), pages 1-21, October.
    16. Jaroslav Mazanec & Viera Bartosova, 2021. "Prediction Model as Sustainability Tool for Assessing Financial Status of Non-Profit Organizations in the Slovak Republic," Sustainability, MDPI, vol. 13(17), pages 1-22, August.
    17. Katarina Valaskova & Dominika Gajdosikova & Jaroslav Belas, 2023. "Bankruptcy prediction in the post-pandemic period: A case study of Visegrad Group countries," Oeconomia Copernicana, Institute of Economic Research, vol. 14(1), pages 253-293, March.
    18. Małgorzata Dobrowolska & Maria Flakus & Magdalena Ślazyk-Sobol & Adam Wawoczny, 2020. "Strengthening Professional Efficacy Due to Sustainable Development of Social and Individual Competences—Empirical Research Study among Polish and Slovak Employees of the Aviation Sector," Sustainability, MDPI, vol. 12(17), pages 1-13, August.
    19. Kyoung-jae Kim & Kichun Lee & Hyunchul Ahn, 2018. "Predicting Corporate Financial Sustainability Using Novel Business Analytics," Sustainability, MDPI, vol. 11(1), pages 1-17, December.

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