Bankruptcy – An Assessment of the Phenomenon in the Small and Medium-Sized Enterprise Sector - Case of Poland

Pasternak-Malicka, Monika; Ostrowska-Dankiewicz, Anna; Dankiewicz, Robert

doi:10.17512/pjms.2021.24.1.15

Cited by 5 publications

(3 citation statements)

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“…In order for a business to avoid bankruptcy, there are many models capable of predicting the risk of bankruptcy and assessing the health of the company from a financial and economic point of view (Bateni et al, 2020;Hafiz et al, 2018;Hu et al, 2020;Kitowski et al, 2022;Kovacova et al, 2020;Shetty et al, 2022;Voda et al, 2021). It is also necessary to consider the main reasons for bankruptcy, including insufficient sales revenues (Pasternak-Malicka et al, 2021), unqualified management and poor business-economic competencies, external bankruptcy causes (Mitter et al, 2021), the size of the firms and the years of experience of its managers also have an impact on financial failure (Bozkurt & Kaya, 2022). In addition, Pálovics et al (2021) found that shock and stress were associated with reporting bankrupcty in the future.…”

Section: Discussionmentioning

confidence: 99%

Development of Initiated Bankruptcies in Slovakia and the Czech Republic

Bič

2022

IJEK

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Nowadays, entrepreneurs can very easily find themselves in a bad financial situation. That is why it is essential to look for ways to help them effectively. However, this cannot be done without knowing the real situation in each country, which is the basis for creating the appropriate conditions. The study's main objective was to identify and compare the development of insolvency indicators representing the bankruptcy of entrepreneurs in Slovakia and the Czech Republic from the first quarter of 2017 to the second quarter of 2021. Descriptive analysis and primary research methods were used to achieve this objective. The analytical processing dealt with the indicator of initiated bankruptcies. A fluctuating decline was observed in both countries. In 2020, a slight increase was recorded, and a further increase can be expected due to the coronavirus disease 2019 (COVID-19) pandemic. 2018 and 2017 were the least positive years for Slovakia and the Czech Republic, respectively. The results indicated the need for interventions in the business environment of both countries to help entrepreneurs in bad situations.

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Section: Discussionmentioning

confidence: 99%

Development of Initiated Bankruptcies in Slovakia and the Czech Republic

Bič

2022

IJEK

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“…Also, the large number of bankruptcies reported by companies can lead to negative consequences at the local level -for economic development and economic circumstances in the region and -on a national scale -for the economy of the whole country (Pisula, 2020). According to Pasternak-Malicka, Ostrowska- Dankiewicz and Dankiewicz (2021), "economic activity is often accompanied by riskrelated uncertainty, which is difficult to recognize. Underestimating or not recognizing such a crisis situation in the organization, or adopting an inadequate action strategy can lead to a serious crisis, which can become a premise and basis for economic bankruptcy."…”

Section: Literature Reviewmentioning

confidence: 99%

Bibliometric analysis of the literature on evaluation models of the bankruptcy risk

Grosu¹,

Chelba²,

Melega³

et al. 2023

Strategic Management

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Background: To manage an enterprise effectively, it is necessary to analyze and diagnose its financial condition, an activity that can warn management of dangerous business situations. Topics such as assessing financial position, performance, and risk, especially after situations that involve an economic and financial crisis in the company have been widely discussed in scientific literature. Purpose: The purpose of the research is to highlight the main research trends regarding bankruptcy risk assessment models. Study design/methodology/approach: The research strategy is based on two main directions: the first involves the selection of research papers with topics on Conan & Holder and Taffler models published on WoS between 2007 and 2021 and those published on SCOPUS between 2006 and 2021. The second direction aims to select the relevant papers and perform a content analysis of financial-accounting information of Conan & Holder and Taffler models. Findings/conclusions: The results obtained were concretized in the design of a bibliometric analysis of bankruptcy risk assessment models, which provides an overview of the new research trends regarding bankruptcy risk assessment models. Thus, it was found that most of the studies focus on the analysis of the efficiency of the bankruptcy risk assessment methods and the identification of new options that allow predictability of the risk. Limitations/future research: Our study limitations are mainly due to the bibliometric algorithm, in the sense that only papers indexed in WoS and Scopus can be imported, processed, and interpreted, which excludes parts of the existing literature on this topic and omits the analysis of some pertinent contributions to our research area. This research can be used as a cornerstone for new research directions, both quantitative and qualitative, on the mechanism of application of bankruptcy risk prevention methods.

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“…Therefore, approaches can be identified that examine, e.g., readability (Bushee et al 2018;Luo and Zhou 2020), the use of hedging terms (Humpherys 2009), and also the sentiment of financial statement textual data (Caserio et al 2020;Mayew et al 2015). Moreover, there are text mining approaches that are created exclusively for qualitative data within financial statements as well as studies that analyze companies' environment variables, e.g., size of a company and industry affiliation, for predicting corporate bankruptcy (Jones 2017;Pamuk et al 2021;Pasternak-Malicka et al 2021). Within the scope of a study of German-language annual financial statements, it was shown that the analysis of the risk report in terms of linguistic complexity, length, and emotional presentation provides suitable information for optimizing the bankruptcy prognosis of companies (Lohmann and Ohliger 2020).…”

Section: Reviewing the Use Of Textual Data In Corporate Bankruptcy Pr...mentioning

confidence: 99%

Evidential Strategies in Financial Statement Analysis: A Corpus Linguistic Text Mining Approach to Bankruptcy Prediction

Nießner

Gross

Schümann

2022

JRFM

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The qualitative information of companies' financial statements provides useful information that can increase the accuracy of bankruptcy prediction models. In this research, a dataset of 924,903 financial statements from 355,704 German companies classified into solvent, financially distressed, and bankrupt companies using the Amadeus database from Bureau van Dijk was examined. The results provide empirical evidence that a corpus linguistic approach implementing evidential strategy analysis towards financial statements helps to distinguish between companies' financial situations. They show that companies use different approaches and confidence assessments when evaluating their financial statements based on solvency and vary their use of evidential strategies accordingly. This leads to the proposition of a procedure to quantify and generate features based on the analysis of evidential strategies that can be used to improve corporate bankruptcy prediction. The results presented here stem from an interdisciplinary adaptation of linguistic findings and provide future research with another means of analysis in the area of text mining.

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Bankruptcy – An Assessment of the Phenomenon in the Small and Medium-Sized Enterprise Sector - Case of Poland

Cited by 5 publications

References 0 publications

Development of Initiated Bankruptcies in Slovakia and the Czech Republic

Development of Initiated Bankruptcies in Slovakia and the Czech Republic

Bibliometric analysis of the literature on evaluation models of the bankruptcy risk

Evidential Strategies in Financial Statement Analysis: A Corpus Linguistic Text Mining Approach to Bankruptcy Prediction

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