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Scientific Publishing Center
Document Details
Document Type
:
Article In Journal
Document Title
:
An Implementation of Altman's Model for the Prediction of Corporate Bankruptcy: The Case of Kuwait
دراسة لنموذج ألتمان للتنبؤ بفشل الشركات بالتطبيق على الشركات المساهمة الكويتية
Subject
:
Business Administration
Document Language
:
Arabic
Abstract
:
This study attempts to explain the extent of efficiency of Kuwait shareholding companies and their characteristics in comparison with western standards for the period 1988-1992. Altman's model has been chosen as a measurement to achieve hat. There are five ratios representing its components which explain five different types of company performance related to each other. The study classifies companies into two groups: "successful" and "weak" along the four years. It is noticed that the degree of failure of both groups is affected by only two ratios, one relating to market value and the other relating to productivity. The resulting five ratios for both groups are below Altman standards. It also shows that our ratios for "successful" companies are below the standards including the one related to productivity which is even below Altman's "failure" standard. If this is the case, then it can fairly be argued that even the "successful" companies are in fact "weak". This leads to the argument that Kuwait companies are generally weak, especially in their ability to generate sales and there market value doesn't reflect the actual value. A clear fault in the balance of the model is caused by an exaggeration in the behavior of the Kuwait market represented by overvaluation of companies, market values which then led to classifying some companies as "successful".
ISSN
:
1319-0997
Journal Name
:
Economics and Administration Journal
Volume
:
8
Issue Number
:
1
Publishing Year
:
1415 AH
1995 AD
Article Type
:
Article
Added Date
:
Sunday, October 11, 2009
Researchers
Researcher Name (Arabic)
Researcher Name (English)
Researcher Type
Dr Grade
Email
طلاع محمد الديحاني
TALLA M. AL-DEEHANI
Researcher
Files
File Name
Type
Description
21689.pdf
pdf
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