Yılmaz talked over once the article titled “Estimation of Financial Failure in Companies Listed at the stock market: BIST Application of Altman Model”, that she had written during her PhD studies, together with Prof. Dr. Mustafa Yıldıran, who is a faculty member at Akdeniz University, to brief our academic staff.
Reviewing 36 institutions in total, 18 bankrupted and 18 successful, which are listed in BIST (Istanbul Stock Exchange) and active in BIST, she tested the estimation capacity of Altman Model. The analyses which are testing the Altman Model’s predictability of bankruptcy, she pointed out that participants are taking into consideration liquidity ratios or balance sheet situations such as profit statement as the success criterion of the institutions and this situation is misjudged by credit institutions, causing adverse outcomes. Yılmaz, applying Altman Model on some companies, determined that companies with balance sheets looking solid, may not be promising or companies which are not making a profit can be promising for the future. Yılmaz concluded her words stating that, therefore, banks will avoid wrong investments if they use Altman Model but not balance sheet situations of the institutions. You may read the article of Yılmaz and Yıldıran clicking on the provided link.
Estimation of Financial Failure in Companies Listed at the stock market: BIST Application of Altman Model
