IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-3-030-02194-8_25.html
   My bibliography  Save this book chapter

The Potential Threat of Corporate Financial Distress in Switzerland

In: Advances in Time Series Data Methods in Applied Economic Research

Author

Listed:
  • Tomáš Pražák

    (Silesian University in Opava)

Abstract

The financial performance and the financial health of companies is given through the ability to generate added value. For the resulting effect of creating added value, maximum activity is required. Otherwise, companies have significant payment difficulties that can be resolved by a radical change in its activities or structure. The aim of this paper is to indicate potential threat of the corporate financial distress in Switzerland. The financial health of companies is analyzed by Taffler’s bankruptcy model. The construction of the predictive models and the bankruptcy models are based on actual data from companies which were threatened by bankruptcy in previous years. The Taffler’s bankruptcy model is applied on the annual corporate financial results in Poland from 2006 to 2015. The results indicated that approximately 34% of companies during the reporting period were at risk of financial distress. Based on the development of the number of endangered businesses, it can be observed that during the recession, the number of companies in financial distress is rising. This hypothesis was confirmed by Pearson’s correlation analysis.

Suggested Citation

  • Tomáš Pražák, 2018. "The Potential Threat of Corporate Financial Distress in Switzerland," Springer Proceedings in Business and Economics, in: Nicholas Tsounis & Aspasia Vlachvei (ed.), Advances in Time Series Data Methods in Applied Economic Research, chapter 0, pages 365-376, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-02194-8_25
    DOI: 10.1007/978-3-030-02194-8_25
    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:prbchp:978-3-030-02194-8_25. 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.