The issue of the debt, bankruptcy or non-bankruptcy of a company is presented in this article as ... more 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.
The internationalisation and globalisation of today's world, especially in business, brings whole... more The internationalisation and globalisation of today's world, especially in business, brings whole new range of opportunities, challenges and also many kinds of risks. Today´s global market in process of globalization offers many different ways of doing business and also whole new ranges of methods how to analyse optimize and also minimize it´s risks. The issue of bankruptcy models is still relevant given by the high competition in the markets and the increasingly frequent crises. Not only in the world, but also in our country, we can see a huge number of bankruptcies of businesses. If the company wants to thrive and successfully compete in the market environment, it should conduct a regular financial analysis of its activities, evaluate successes and failures, and use the results obtained to make strategic decisions about future business development. The aim of the article is to examine the possibilities of predicting the bankruptcy of companies and describe their individual procedures. In the first part of the paper we defined the terms such as insolvency, decline of company and bankruptcy. We continue with a brief overview of the development of bankruptcy models from the first attempts to modern practices. We have described and defined each model in detail, described its specifics, and described the calculation procedure. The biggest added value of this paper is a comprehensive elaboration of an overview of the possibilities of predicting company manrots through bankruptcy models. We can say that the goal of the post has been fulfilled.
This article is an open access article distributed under the terms and conditions of the Creative... more This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY
Journal of risk and financial management, May 7, 2020
The risk of corporate financial distress negatively affects the operation of the enterprise itsel... more The risk of corporate financial distress negatively affects the operation of the enterprise itself and can change the financial performance of all other partners that come into close or wider contact. To identify these risks, business entities use early warning systems, prediction models, which help identify the level of corporate financial health. Despite the fact that the relevant financial analyses and financial health predictions are crucial to mitigate or eliminate the potential risks of bankruptcy, the modeling of financial health in emerging countries is mostly based on models which were developed in different economic sectors and countries. However, several prediction models have been introduced in emerging countries (also in Slovakia) in the last few years. Thus, the main purpose of the paper is to verify the predictive ability of the bankruptcy models formed in conditions of the Slovak economy in the sector of agriculture. To compare their predictive accuracy the confusion matrix (cross tables) and the receiver operating characteristic curve are used, which allow more detailed analysis than the mere proportion of correct classifications (predictive accuracy). The results indicate that the models developed in the specific economic sector highly outperform the prediction ability of other models either developed in the same country or abroad, usage of which is then questionable considering the issue of prediction accuracy. The research findings confirm that the highest predictive ability of the bankruptcy prediction models is achieved provided that they are used in the same economic conditions and industrial sector in which they were primarily developed.
Predicting the risk of financial distress of enterprises is an inseparable part of financial-econ... more Predicting the risk of financial distress of enterprises is an inseparable part of financial-economic analysis, helping investors and creditors reveal the performance stability of any enterprise. The acceptance of national conditions, proper use of financial predictors and statistical methods enable achieving relevant results and predicting the future development of enterprises as accurately as possible. The aim of the paper is to compare models developed by using three different methods (logistic regression, random forest and neural network models) in order to identify a model with the highest predictive accuracy of financial distress when it comes to industrial enterprises operating in the specific Slovak environment. The results indicate that all models demonstrated high discrimination accuracy and similar performance; neural network models yielded better results measured by all performance characteristics. The outputs of the comparison may contribute to the development of a reputable prediction model for industrial enterprises, which has not been developed yet in the country, which is one of the world's largest car producers.
summary:Uvedieme históriu a prehľad výsledkov o ukladaní kociek do kvádra s minimálnym objemom a ... more summary:Uvedieme históriu a prehľad výsledkov o ukladaní kociek do kvádra s minimálnym objemom a pridáme aj hlavné myšlienky niektorých dôkazov. V závere sa veľmi stručne zmienime o iných ukladacích problémoch
Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018), 2018
Economic growth is one of the most striking phenomena of recent years. The global economy is cons... more Economic growth is one of the most striking phenomena of recent years. The global economy is considered to be powerful and powerful. Nevertheless, signs of the deteriorating financial condition of the state, the population and surrounding businesses must be perceived. Financial management of any company should not neglect examining the causes of financial distress from a microeconomic and macroeconomic perspective. At the same time, businesses do not look at these causes as separate events, but perceive their interconnectedness. The aim of this paper is therefore to detect, investigate and summarize the causes of corporate failure.
The prediction of bankruptcy has been the main aim of many studies. Many authors in different cou... more The prediction of bankruptcy has been the main aim of many studies. Many authors in different countries all over the world have been trying to find the best bankruptcy forecasting model based on various financial ratios of enterprises. For this purpose different multivariate statistical methods (e.g. multivariate discriminant analysis) have been used. Although classical Altman Z model and other models based on MDA are still widely used for failure prediction in many economics, in the paper we analyze the MDA bankruptcy prediction models created in recent 25 years in different countries all over the world. In our analysis we focus on financial ratios used as predictors in these models. With real data of Slovak enterprises we create the MDA bankruptcy prediction model together with its classification ability. We analyze whether the financial ratios used in our model are similar to that ones most-frequently used in selected MDA prediction models in another countries.
Research background: The presented paper deals with the support of innovative activities of small... more Research background: The presented paper deals with the support of innovative activities of small and medium enterprises in the Slovak Republic. The topicality of the issue is based on the knowledge that small and medium-sized enterprises can respond quickly and effectively to customer requirements and thus to changes resulting from changes in the market. In the era of globalization, the knowledge economy based on three key factors prevails in developed countries - science and research, the quality of human capital and innovative entrepreneurship, which focuses on creating the conditions for the practical use of knowledge, for projecting it into innovation. The aim of the paper is based on theoretical knowledge, analysis of support for innovative activities of small and medium enterprises by the state in the conditions of the Slovak Republic, their readiness to invest in research and development to propose a streamlining support scheme for small and medium enterprises.Purpose of the...
Research background: In today’s global world and many major market players, companies are forced ... more Research background: In today’s global world and many major market players, companies are forced to streamline and optimize their processes. They can use many methods for this purpose. One of the modern and innovative methods is process simulation. Simulation is experimenting with a computer model of a real production system in order to optimize the production process. Purpose of the article: The purpose of this article is to point out how it is possible to optimize processes in a manufacturing plant using a simulation tool. Methods: The main methods used were mainly method of analysis and simulation software Tecnomatix Plant Simulation, version 15.0.5 from Siemens company. The authors used the method of analysis both in the processing of the theoretical basis of the problem, as well as in the analysis of processes in the manufacturing company. This analysis provided important information inputs for creating a simulation model that reflects the current state of material flows in the...
Research background: The paper investigates the earnings management phenomenon in the context of ... more Research background: The paper investigates the earnings management phenomenon in the context of Central European countries, attempting to identify the factors and incentives that can influence earnings management behavior on a sample of 8,156 enterprises from Slovakia, the Czech Republic, Hungary, and Poland. Purpose of the article: The main purpose of the manuscript is to prove that there are significant differences in earnings management practices (measured by discretionary accruals) across the countries and to find the firm-specific features that influence the way enterprises manage their earnings. Methods: The modified Jones model was used to calculate the discretionary accruals, which are further analyzed across the countries. The statistically significant differences were confirmed across the countries. Thus, the impact of the economic sector, firm size, firm age, legal form, and ownership structure on earnings management behavior is studied by the Kruskal-Wallis test. The Du...
The current COVID-19 pandemic has affected every aspect of consumer behavior—their expenses, inve... more The current COVID-19 pandemic has affected every aspect of consumer behavior—their expenses, investments, and financial reserves, as well as their financial and social wellbeing. As a consequence of different restrictions, consumers and their shopping patterns have changed significantly; thus, the factors that influence new purchase patterns need to be identified to help traders, retailers, and marketers develop appropriate strategies to respond to crucial consumer changes in the market. A categorical analysis (Pearson’s chi-square test) and correspondence analysis (simple and multivariate) were applied to a sample of 425 Slovak respondents to reveal the most important factors impacting consumers’ financial situations, as well as the effects on the maintenance of new shopping habits established during the pandemic period. The results revealed that consumers’ income, age, and sector of occupation play important roles in the context of new shopping patterns. These findings are in agre...
Predicting the risk of financial distress of enterprises is an inseparable part of financial-econ... more Predicting the risk of financial distress of enterprises is an inseparable part of financial-economic analysis, helping investors and creditors reveal the performance stability of any enterprise. The acceptance of national conditions, proper use of financial predictors and statistical methods enable achieving relevant results and predicting the future development of enterprises as accurately as possible. The aim of the paper is to compare models developed by using three different methods (logistic regression, random forest and neural network models) in order to identify a model with the highest predictive accuracy of financial distress when it comes to industrial enterprises operating in the specific Slovak environment. The results indicate that all models demonstrated high discrimination accuracy and similar performance; neural network models yielded better results measured by all performance characteristics. The outputs of the comparison may contribute to the development of a repu...
The risk of corporate financial distress negatively affects the operation of the enterprise itsel... more The risk of corporate financial distress negatively affects the operation of the enterprise itself and can change the financial performance of all other partners that come into close or wider contact. To identify these risks, business entities use early warning systems, prediction models, which help identify the level of corporate financial health. Despite the fact that the relevant financial analyses and financial health predictions are crucial to mitigate or eliminate the potential risks of bankruptcy, the modeling of financial health in emerging countries is mostly based on models which were developed in different economic sectors and countries. However, several prediction models have been introduced in emerging countries (also in Slovakia) in the last few years. Thus, the main purpose of the paper is to verify the predictive ability of the bankruptcy models formed in conditions of the Slovak economy in the sector of agriculture. To compare their predictive accuracy the confusion...
Bankruptcy models are used to assess credit risk and predict financial situation to indicate the ... more Bankruptcy models are used to assess credit risk and predict financial situation to indicate the probable bankruptcy of the company. Contribution deals with the application of chosen bankruptcy models in analysing and predicting the financial health of selected companies. Most of the models have been developed abroad. In case of Slovak Republic, its application and correctness of the results can be problematic; therefore, we have focused primarily on those that have emerged in countries with a similar economy. We have calculated the selected prediction models in a sample of 500 Slovak enterprises. Predictive ability lower than 64% is considered as unfavourable. As part of the contribution, based on expert literature and relevant legislation, we have defined the criteria that allow to divide businesses into two groups: prosperous and non-prosperous. In the end, we compared the results of the selected models with the inclusion of enterprises in a prosperous and non- prosperous group b...
The issue of the debt, bankruptcy or non-bankruptcy of a company is presented in this article as ... more 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.
The internationalisation and globalisation of today's world, especially in business, brings whole... more The internationalisation and globalisation of today's world, especially in business, brings whole new range of opportunities, challenges and also many kinds of risks. Today´s global market in process of globalization offers many different ways of doing business and also whole new ranges of methods how to analyse optimize and also minimize it´s risks. The issue of bankruptcy models is still relevant given by the high competition in the markets and the increasingly frequent crises. Not only in the world, but also in our country, we can see a huge number of bankruptcies of businesses. If the company wants to thrive and successfully compete in the market environment, it should conduct a regular financial analysis of its activities, evaluate successes and failures, and use the results obtained to make strategic decisions about future business development. The aim of the article is to examine the possibilities of predicting the bankruptcy of companies and describe their individual procedures. In the first part of the paper we defined the terms such as insolvency, decline of company and bankruptcy. We continue with a brief overview of the development of bankruptcy models from the first attempts to modern practices. We have described and defined each model in detail, described its specifics, and described the calculation procedure. The biggest added value of this paper is a comprehensive elaboration of an overview of the possibilities of predicting company manrots through bankruptcy models. We can say that the goal of the post has been fulfilled.
This article is an open access article distributed under the terms and conditions of the Creative... more This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY
Journal of risk and financial management, May 7, 2020
The risk of corporate financial distress negatively affects the operation of the enterprise itsel... more The risk of corporate financial distress negatively affects the operation of the enterprise itself and can change the financial performance of all other partners that come into close or wider contact. To identify these risks, business entities use early warning systems, prediction models, which help identify the level of corporate financial health. Despite the fact that the relevant financial analyses and financial health predictions are crucial to mitigate or eliminate the potential risks of bankruptcy, the modeling of financial health in emerging countries is mostly based on models which were developed in different economic sectors and countries. However, several prediction models have been introduced in emerging countries (also in Slovakia) in the last few years. Thus, the main purpose of the paper is to verify the predictive ability of the bankruptcy models formed in conditions of the Slovak economy in the sector of agriculture. To compare their predictive accuracy the confusion matrix (cross tables) and the receiver operating characteristic curve are used, which allow more detailed analysis than the mere proportion of correct classifications (predictive accuracy). The results indicate that the models developed in the specific economic sector highly outperform the prediction ability of other models either developed in the same country or abroad, usage of which is then questionable considering the issue of prediction accuracy. The research findings confirm that the highest predictive ability of the bankruptcy prediction models is achieved provided that they are used in the same economic conditions and industrial sector in which they were primarily developed.
Predicting the risk of financial distress of enterprises is an inseparable part of financial-econ... more Predicting the risk of financial distress of enterprises is an inseparable part of financial-economic analysis, helping investors and creditors reveal the performance stability of any enterprise. The acceptance of national conditions, proper use of financial predictors and statistical methods enable achieving relevant results and predicting the future development of enterprises as accurately as possible. The aim of the paper is to compare models developed by using three different methods (logistic regression, random forest and neural network models) in order to identify a model with the highest predictive accuracy of financial distress when it comes to industrial enterprises operating in the specific Slovak environment. The results indicate that all models demonstrated high discrimination accuracy and similar performance; neural network models yielded better results measured by all performance characteristics. The outputs of the comparison may contribute to the development of a reputable prediction model for industrial enterprises, which has not been developed yet in the country, which is one of the world's largest car producers.
summary:Uvedieme históriu a prehľad výsledkov o ukladaní kociek do kvádra s minimálnym objemom a ... more summary:Uvedieme históriu a prehľad výsledkov o ukladaní kociek do kvádra s minimálnym objemom a pridáme aj hlavné myšlienky niektorých dôkazov. V závere sa veľmi stručne zmienime o iných ukladacích problémoch
Proceedings of the Third International Conference on Economic and Business Management (FEBM 2018), 2018
Economic growth is one of the most striking phenomena of recent years. The global economy is cons... more Economic growth is one of the most striking phenomena of recent years. The global economy is considered to be powerful and powerful. Nevertheless, signs of the deteriorating financial condition of the state, the population and surrounding businesses must be perceived. Financial management of any company should not neglect examining the causes of financial distress from a microeconomic and macroeconomic perspective. At the same time, businesses do not look at these causes as separate events, but perceive their interconnectedness. The aim of this paper is therefore to detect, investigate and summarize the causes of corporate failure.
The prediction of bankruptcy has been the main aim of many studies. Many authors in different cou... more The prediction of bankruptcy has been the main aim of many studies. Many authors in different countries all over the world have been trying to find the best bankruptcy forecasting model based on various financial ratios of enterprises. For this purpose different multivariate statistical methods (e.g. multivariate discriminant analysis) have been used. Although classical Altman Z model and other models based on MDA are still widely used for failure prediction in many economics, in the paper we analyze the MDA bankruptcy prediction models created in recent 25 years in different countries all over the world. In our analysis we focus on financial ratios used as predictors in these models. With real data of Slovak enterprises we create the MDA bankruptcy prediction model together with its classification ability. We analyze whether the financial ratios used in our model are similar to that ones most-frequently used in selected MDA prediction models in another countries.
Research background: The presented paper deals with the support of innovative activities of small... more Research background: The presented paper deals with the support of innovative activities of small and medium enterprises in the Slovak Republic. The topicality of the issue is based on the knowledge that small and medium-sized enterprises can respond quickly and effectively to customer requirements and thus to changes resulting from changes in the market. In the era of globalization, the knowledge economy based on three key factors prevails in developed countries - science and research, the quality of human capital and innovative entrepreneurship, which focuses on creating the conditions for the practical use of knowledge, for projecting it into innovation. The aim of the paper is based on theoretical knowledge, analysis of support for innovative activities of small and medium enterprises by the state in the conditions of the Slovak Republic, their readiness to invest in research and development to propose a streamlining support scheme for small and medium enterprises.Purpose of the...
Research background: In today’s global world and many major market players, companies are forced ... more Research background: In today’s global world and many major market players, companies are forced to streamline and optimize their processes. They can use many methods for this purpose. One of the modern and innovative methods is process simulation. Simulation is experimenting with a computer model of a real production system in order to optimize the production process. Purpose of the article: The purpose of this article is to point out how it is possible to optimize processes in a manufacturing plant using a simulation tool. Methods: The main methods used were mainly method of analysis and simulation software Tecnomatix Plant Simulation, version 15.0.5 from Siemens company. The authors used the method of analysis both in the processing of the theoretical basis of the problem, as well as in the analysis of processes in the manufacturing company. This analysis provided important information inputs for creating a simulation model that reflects the current state of material flows in the...
Research background: The paper investigates the earnings management phenomenon in the context of ... more Research background: The paper investigates the earnings management phenomenon in the context of Central European countries, attempting to identify the factors and incentives that can influence earnings management behavior on a sample of 8,156 enterprises from Slovakia, the Czech Republic, Hungary, and Poland. Purpose of the article: The main purpose of the manuscript is to prove that there are significant differences in earnings management practices (measured by discretionary accruals) across the countries and to find the firm-specific features that influence the way enterprises manage their earnings. Methods: The modified Jones model was used to calculate the discretionary accruals, which are further analyzed across the countries. The statistically significant differences were confirmed across the countries. Thus, the impact of the economic sector, firm size, firm age, legal form, and ownership structure on earnings management behavior is studied by the Kruskal-Wallis test. The Du...
The current COVID-19 pandemic has affected every aspect of consumer behavior—their expenses, inve... more The current COVID-19 pandemic has affected every aspect of consumer behavior—their expenses, investments, and financial reserves, as well as their financial and social wellbeing. As a consequence of different restrictions, consumers and their shopping patterns have changed significantly; thus, the factors that influence new purchase patterns need to be identified to help traders, retailers, and marketers develop appropriate strategies to respond to crucial consumer changes in the market. A categorical analysis (Pearson’s chi-square test) and correspondence analysis (simple and multivariate) were applied to a sample of 425 Slovak respondents to reveal the most important factors impacting consumers’ financial situations, as well as the effects on the maintenance of new shopping habits established during the pandemic period. The results revealed that consumers’ income, age, and sector of occupation play important roles in the context of new shopping patterns. These findings are in agre...
Predicting the risk of financial distress of enterprises is an inseparable part of financial-econ... more Predicting the risk of financial distress of enterprises is an inseparable part of financial-economic analysis, helping investors and creditors reveal the performance stability of any enterprise. The acceptance of national conditions, proper use of financial predictors and statistical methods enable achieving relevant results and predicting the future development of enterprises as accurately as possible. The aim of the paper is to compare models developed by using three different methods (logistic regression, random forest and neural network models) in order to identify a model with the highest predictive accuracy of financial distress when it comes to industrial enterprises operating in the specific Slovak environment. The results indicate that all models demonstrated high discrimination accuracy and similar performance; neural network models yielded better results measured by all performance characteristics. The outputs of the comparison may contribute to the development of a repu...
The risk of corporate financial distress negatively affects the operation of the enterprise itsel... more The risk of corporate financial distress negatively affects the operation of the enterprise itself and can change the financial performance of all other partners that come into close or wider contact. To identify these risks, business entities use early warning systems, prediction models, which help identify the level of corporate financial health. Despite the fact that the relevant financial analyses and financial health predictions are crucial to mitigate or eliminate the potential risks of bankruptcy, the modeling of financial health in emerging countries is mostly based on models which were developed in different economic sectors and countries. However, several prediction models have been introduced in emerging countries (also in Slovakia) in the last few years. Thus, the main purpose of the paper is to verify the predictive ability of the bankruptcy models formed in conditions of the Slovak economy in the sector of agriculture. To compare their predictive accuracy the confusion...
Bankruptcy models are used to assess credit risk and predict financial situation to indicate the ... more Bankruptcy models are used to assess credit risk and predict financial situation to indicate the probable bankruptcy of the company. Contribution deals with the application of chosen bankruptcy models in analysing and predicting the financial health of selected companies. Most of the models have been developed abroad. In case of Slovak Republic, its application and correctness of the results can be problematic; therefore, we have focused primarily on those that have emerged in countries with a similar economy. We have calculated the selected prediction models in a sample of 500 Slovak enterprises. Predictive ability lower than 64% is considered as unfavourable. As part of the contribution, based on expert literature and relevant legislation, we have defined the criteria that allow to divide businesses into two groups: prosperous and non-prosperous. In the end, we compared the results of the selected models with the inclusion of enterprises in a prosperous and non- prosperous group b...
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Papers by Peter Adamko