مجلة آفاق للبحوث والدراسات
Volume 4, Numéro 2, Pages 52-67
2021-07-31

Application And Comparison Of Altman Models To Predict Financial Failure Of Companies

Authors : Benhamed Abdelghani . Houas Abderrezzak .

Abstract

This research paper aimed to conduct a comparative analytical study between the original Altman model and his second revised model in predicting financial failure of companies. The study concluded that there is a difference in the results of applying Altman's models to predict financial failure, but the second revised Altman model is considered the best in predicting failure. Joint stock companies listed on the Amman Stock Exchange during the three years prior to the event of liquidation and failure, with a rating accuracy of 86.67% compared to Altman's original.

Keywords

financial failure; predicting financial failure; Altman models.

The Role Of Financial Analysis In Evaluating The Performance Of Industrial Enterprises To Predict Financial Failure

. Al- Kassar Talal .  Kouachi Mourad .  Sheet Ammar Nasruldeen Mohammed . 
pages 91-113.