Open AccessValidating the Reliability of Predictive Models for the Companies in the Slovak Creative Industry
Publication year - 2021
Publication title -
auspicia
Language(s) - English
Resource type - Journals
eISSN - 2464-7217
pISSN - 1214-4967
DOI - 10.36682/a_2021_1_2
Subject(s) - reliability (semiconductor) , globalization , test (biology) , legislature , slovak , index (typography) , predictive modelling , business , human capital , actuarial science , economics , accounting , computer science , statistics , political science , economic growth , mathematics , paleontology , power (physics) , linguistics , physics , philosophy , czech , quantum mechanics , world wide web , law , market economy , biology
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.