IDEAS home Printed from https://ideas.repec.org/h/spr/lnichp/978-3-642-35761-9_12.html
   My bibliography  Save this book chapter

Break-Up Analysis: A Method to Regain Trust in Business Transactions

In: Accounting Information Systems for Decision Making

Author

Listed:
  • Bruno Maria Franceschetti

    (University of Macerata)

  • Claudia Koschtial

    (Technische Universität Bergakademie Freiberg)

  • Carsten Felden

    (Technische Universität Bergakademie Freiberg)

Abstract

The financial crisis resulted in a loss of trust; not only within the investment or banking sector, but in general between creditors and debtors, because many organizations faced insolvency. Such a financial situation can even result in a company’s bankruptcy. Therefore it is necessary to get a realistic understanding of the solvency or the possible insolvency of a company. The support of a decision on a debtor’s creditability is not yet sufficiently provided by the most prominent method (Altman’s Z’’-score). The paper presents a procedure called Break-Up Analysis (BUA). It helps to decide on the solvency of a company. The comparison of the BUA to Altman’s Z’’-score shows an improvement of the identification of solvent and insolvent companies by 22 %. The BUA enables herewith to regain trust in business transaction by not identifying only the insolvent companies but the solvent ones as well.

Suggested Citation

  • Bruno Maria Franceschetti & Claudia Koschtial & Carsten Felden, 2013. "Break-Up Analysis: A Method to Regain Trust in Business Transactions," Lecture Notes in Information Systems and Organization, in: Daniela Mancini & Eddy H. J. Vaassen & Renata Paola Dameri (ed.), Accounting Information Systems for Decision Making, edition 127, pages 203-219, Springer.
  • Handle: RePEc:spr:lnichp:978-3-642-35761-9_12
    DOI: 10.1007/978-3-642-35761-9_12
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnichp:978-3-642-35761-9_12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.