Validating the Reliability of Predictive Models for the Companies in the Slovak Creative Industry

Globalization of business environment has brought new challenges and trends.The importance of human capital has been growing especially since the 1990s when theCreative Industry was recognized as a full-fledged component of the national economy. There are a number of models available to analyse the financial health of the companies operating in the Creative Industry. The authors first focused on Acts No. 513/1991 Coll. and 7/2005 of the Commercial Code, as amended, which define the financial health of a company. After applying Altman Z-Score, IN05 and Creditworthiness Index, Quick Test and Binkert and Taffler models, it follows from the results that Quick Test shows the highest level of agreement with the legislative definition of a non-prosperous company. Therefore, the authors decided to analyse this predictive model further. The results of their study show that, while very reliable for the category of non-prosperous companies, the model does not achieve sufficient reliability for other categories, the average/grey zone in particular. Based on the results of the study, the authors conclude that a new predictive model to assess a company’s financial health is necessary.