FORECASTING BANKRUPTCY RISK IN THE CONTEXTS OF CREDIT RISK MANAGEMENT - A CASE STUDY ON WHOLESALE FOOD INDUSTRY IN POLAND

RAFAL BALINA

Abstract:

The aim of the article was to identify the key factors influencing the increase in the risk of bankruptcy of companies from wholesale food industry in Poland. In addition, the research aimed to identifying the most effective method of forecasting the risk of bankruptcy of enterprises in the examined industry in the context of risk management in banks. The research showed that three key indicators determining the financial situation of the enterprise were the key for the analyzed industry: ratio of own equity and the revenue from sale; difference between the quick liquidity indicator for the industry and for the company and dynamics of company’s short term liabilities. These variables point to the areas of activity of companies from wholesale food industry, to which banks should pay special attention during the credit risk assessment process.

Keywords:
bancruptcy, credit risk, food industry, neutral network, linear discriminat, logistic regresion

DOI: 10.52950/ES.2018.7.1.001

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APA citation:
RAFAL BALINA (2018). Forecasting Bankruptcy Risk in The contexts of Credit Risk Management - A Case Study on Wholesale Food Industry in Poland. International Journal of Economic Sciences, Vol. VII(1), pp. 1-15. , DOI: 10.52950/ES.2018.7.1.001


Copyright © 2018, Rafal Balina et al, rafal_balina@sggw.pl