Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83366
Authors: 
Jakubík, Petr
Teplý, Petr
Year of Publication: 
2008
Series/Report no.: 
IES Working Paper 19/2008
Abstract: 
This article presents a financial scoring model estimated on Czech corporate accounting data. Seven financial indicators capable of explaining business failure at a 1-year prediction horizon are identified. Using the model estimated in this way, an aggregate indicator of the creditworthiness of the Czech corporate sector (named as JT index) is then constructed and its evolution over time is shown. This indicator aids the estimation of the risks of this sector going forward and broadens the existing analytical set-up used by the Czech National Bank for its financial stability analyses. The results suggest that the creditworthiness of the Czech corporate sector steadily improved between 2004 and 2006, but slightly deteriorated in 2007 what could be explained through global market turbulences.
Subjects: 
bankruptcy prediction
financial stability
logit analysis
corporate sector risk
JT index
JEL: 
G32
G33
G21
G28
Document Type: 
Working Paper
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