Business management and methods of predictive financial analysis companies

https://doi.org/10.21744/lingcure.v5nS4.1857

Authors

  • Marián Smorada University of Economics in Bratislava, Bratislava, Slovakia
  • Andrea Lukáčková University of Economics in Bratislava, Bratislava, Slovakia
  • Zuzana Hajduová University of Economics in Bratislava, Bratislava, Slovakia
  • Ľudovít Šrenkel Institute of Forensic Engineering of University of Zilina, Žilina, Slovakia
  • Ján Havier Slovak Business Agency, Bratislava, Slovakia

Keywords:

business practices, enterprises, predictive method, sustainable strategy, sustainable

Abstract

The focus of this presented work is the application of one-dimensional discriminant analysis in specific conditions of economic practice. The research sample of the enterprises has shown, that even these methods can better warn against nearing bankruptcy by predicting whether business will or will not be sustainable. Generally, these discriminant analyses use the financial ratios methods. The future situation of an enterprise can be predicted, among other things, by means of one-dimensional and multidimensional discriminant analysis methods, which are dealt with by several authors. Given the different approaches of authors, one-dimensional discriminant analysis methods that are "older" can be assumed to have a different reliability than multidimensional discriminant analysis methods. The assumptions of our research were verified in a group consisting of prosperous and non-prosperous business entities. The results of the original research show that one-dimensional discriminatory methods had a higher reliability than the multidimensional ones on the sample of enterprises surveyed. At the same time, it has not been established that a 100% reliable method will be found, but it is good to know the assumptions on which these existing methods work and use a combination of multiple methods.

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Published

2021-11-23

How to Cite

Smorada, M., Lukáčková, A., Hajduová, Z., Šrenkel, Ľudovít, & Havier, J. (2021). Business management and methods of predictive financial analysis companies. Linguistics and Culture Review, 5(S4), 1754-1768. https://doi.org/10.21744/lingcure.v5nS4.1857

Issue

Section

Research Articles