DETERMINING FINANCIAL DISTRESS WITH THE HELP OF THE ALTMAN Z-SCORE MODEL

Servet Say

Article Details

DETERMINING FINANCIAL DISTRESS WITH THE HELP OF THE ALTMAN Z-SCORE MODEL

Authors:

Servet Say

Publisher:

Kütahya Dumlupinar University

Main Topics:

Finans

Journal:

Toplum Ekonomi ve Yönetim Dergisi Vol.5 Issue 2, pp.327-341

Document Type:

Article

Publication Date:

6/2024

Document Language:

English

Document ID (Org No.):

2001313169

pISSN:

2757-5489

Keywords:

Abstract:

 Financial distress is a condition in which a company faces financial difficulties where its cash flows cannot meet its current obligations, such as trade payables or interest costs. Financial distress is the stages of deterioration in the financial condition of a company before bankruptcy or liquidation occurs. In this case, management cannot monitor the financial condition of the company, which causes increased business risk. Financial distress usually emerges with increasing liquidity pressures and then continues in the form of diminishing assets, the inability of the company to meet its financial obligations and dragging the company into bankruptcy. Considering the previous studies in the literature; many factors such as the size of the data used in the detection of financial distress, the type of sector from which it is obtained, the economic structure of the country affect the degree of success of the models. From this point of view, the main purpose of the study is to determine the financial failure degrees of the companies under the chemical, pharmaceutical, petroleum, rubber and plastic products sector classification, whose shares are traded in Borsa Istanbul. In this context, the Z Score Model developed by Altman was used. According to the results obtained from the study, most of the enterprises are either in the risky zone or in the gray zone for the studied 3-year period.

 Financial distress is a condition in which a company faces financial difficulties where its cash flows cannot meet its current obligations, such as trade payables or interest costs. Financial distress is the stages of deterioration in the financial condition of a company before bankruptcy or liquidation occurs. In this case, management cannot monitor the financial condition of the company, which causes increased business risk. Financial distress usually emerges with increasing liquidity pressures and then continues in the form of diminishing assets, the inability of the company to meet its financial obligations and dragging the company into bankruptcy. Considering the previous studies in the literature; many factors such as the size of the data used in the detection of financial distress, the type of sector from which it is obtained, the economic structure of the country affect the degree of success of the models. From this point of view, the main purpose of the study is to determine the financial failure degrees of the companies under the chemical, pharmaceutical, petroleum, rubber and plastic products sector classification, whose shares are traded in Borsa Istanbul. In this context, the Z Score Model developed by Altman was used. According to the results obtained from the study, most of the enterprises are either in the risky zone or in the gray zone for the studied 3-year period.

 Financial distress is a condition in which a company faces financial difficulties where its cash flows cannot meet its current obligations, such as trade payables or interest costs. Financial distress is the stages of deterioration in the financial condition of a company before bankruptcy or liquidation occurs. In this case, management cannot monitor the financial condition of the company, which causes increased business risk. Financial distress usually emerges with increasing liquidity pressures and then continues in the form of diminishing assets, the inability of the company to meet its financial obligations and dragging the company into bankruptcy. Considering the previous studies in the literature; many factors such as the size of the data used in the detection of financial distress, the type of sector from which it is obtained, the economic structure of the country affect the degree of success of the models. From this point of view, the main purpose of the study is to determine the financial failure degrees of the companies under the chemical, pharmaceutical, petroleum, rubber and plastic products sector classification, whose shares are traded in Borsa Istanbul. In this context, the Z Score Model developed by Altman was used. According to the results obtained from the study, most of the enterprises are either in the risky zone or in the gray zone for the studied 3-year period.

 Finansal başarısızlık kavramı, bir işletmeye ait nakit akışlarının faiz maliyetleri ya da ticari borçlar gibi var olan yükümlülüklerini karşılayamadığı yani finansal zorluklarla karşılaşması olarak tanımlanabilir. Finansal başarısızlık, tasfiye ya da iflas süreci başlamadan önce bir işletmenin finansal durumunda yaşadığı sıkıntılardır. Bu durumda yönetim şirketin mali durumu hakkında sağlıklı bilgiye sahip olamaz ve devamında sürekli olarak artan is riski ortaya çıkar. Finansal başarısızlık genel olarak giderek artan likidite baskılarıyla ortaya çıkar ve sonra azalan varlıkların işletmenin finansal yükümlülüklerini yerine getirememesine neden olur. Bu da işletmenin iflasa sürüklenmesi anlamını taşır. Literatürde daha önce yapılmış çalışmalar dikkate alındığında; finansal başarısızlığın tespitinde kullanılacak verilerin büyüklüğü, ülkenin ekonomik yapısı ve verilerin sağlandığı sektör gibi birçok faktörün modellerin başarılı olmasını etkilediği görülmüştür. Buradan hareketle çalışmanın temel amacı hisseleri Borsa İstanbulda işlem gören kimya, ilaç, petrol, lastik ve plastik ürünler sektör sınıflaması altında bulunan işletmelerin finansal başarısızlık derecelerinin belirlenmesidir. Bu kapsamda Altman tarafından geliştirilen Z Skor Modeli kullanılmıştır. Çalışmadan elde edilen sonuçlara göre genel olarak incelenen 3 yılda işletmelerin çoğu ya riskli bölgede ya da gri bölgede yer almaktadır.

Article Details

DETERMINING FINANCIAL DISTRESS WITH THE HELP OF THE ALTMAN Z-SCORE MODEL

Authors:

Servet Say

Publisher:

Kütahya Dumlupinar University

Main Topics:

Finans

Journal:

Toplum Ekonomi ve Yönetim Dergisi Vol.5 Issue 2, pp.327-341

Document Type:

Article

Publication Date:

6/2024

Document Language:

English

Document ID (Org No.):

2001313169

pISSN:

2757-5489

Financial Distress

Altman Z Score Model

Borsa İstanbulFinansal Başarısızlık

Altman Z Skor Modeli

Borsa İstanbul

Issues

Article Details

DETERMINING FINANCIAL DISTRESS WITH THE HELP OF THE ALTMAN Z-SCORE MODEL

Authors: Servet Say

Publisher: Kütahya Dumlupinar University

Main Topics: Finans

Journal: Toplum Ekonomi ve Yönetim Dergisi Vol.5 Issue 2, pp.327-341

Document Type: Article

Publication Date: 6/2024

Document Language: English

Document ID (Org No.): 2001313169

pISSN: 2757-5489

Financial Distress

Altman Z Score Model

Borsa İstanbulFinansal Başarısızlık

Altman Z Skor Modeli

Borsa İstanbul

Issues

Authors:

Servet Say

Publisher:

Kütahya Dumlupinar University

Main Topics:

Finans

Journal:

Toplum Ekonomi ve Yönetim Dergisi Vol.5 Issue 2, pp.327-341

Document Type:

Article

Publication Date:

6/2024

Document Language:

English

Document ID (Org No.):

2001313169

pISSN:

2757-5489