Document Details

Document Type : Article In Journal 
Document Title :
An Implementation of Altman's Model for the Prediction of Corporate Bankruptcy: The Case of Kuwait
دراسة لنموذج ألتمان للتنبؤ بفشل الشركات بالتطبيق على الشركات المساهمة الكويتية
 
Subject : Business Administration 
Document Language : Arabic 
Abstract : This study attempts to explain the extent of efficiency of Kuwait shareholding companies and their characteristics in comparison with western standards for the period 1988-1992. Altman's model has been chosen as a measurement to achieve hat. There are five ratios representing its components which explain five different types of company performance related to each other. The study classifies companies into two groups: "successful" and "weak" along the four years. It is noticed that the degree of failure of both groups is affected by only two ratios, one relating to market value and the other relating to productivity. The resulting five ratios for both groups are below Altman standards. It also shows that our ratios for "successful" companies are below the standards including the one related to productivity which is even below Altman's "failure" standard. If this is the case, then it can fairly be argued that even the "successful" companies are in fact "weak". This leads to the argument that Kuwait companies are generally weak, especially in their ability to generate sales and there market value doesn't reflect the actual value. A clear fault in the balance of the model is caused by an exaggeration in the behavior of the Kuwait market represented by overvaluation of companies, market values which then led to classifying some companies as "successful". 
ISSN : 1319-0997 
Journal Name : Economics and Administration Journal 
Volume : 8 
Issue Number : 1 
Publishing Year : 1415 AH
1995 AD 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
طلاع محمد الديحانيTALLA M. AL-DEEHANIResearcher  

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