Articles producció científica> Gestió d'Empreses

Bankruptcy prediction for the European aviation industry: An application of the Altman model

  • Identification data

    Identifier: imarina:9331011
    Authors:
    Shi, YLi, XN
    Abstract:
    Aviation industry is extremely vulnerable to economic turbulence or a pandemic. Over the past decade, a number of well-known European airline brands have gone into bankruptcy, with consequences such as leaving thousands of passengers stranded abroad. The present research assesses the predictive power of the updated Altman Z-score model (1983 and 2017) using data on European airline bankruptcies over the period 2009–2020. The results indicate that the Z″-score (2017) for private non-manufacturing companies shows satisfactory predictive power when applied on European aviation industry. In this study, we analyze in depth the performance of the updated Altman Z′- and Z″-scores (1983, 2017), connecting airline's financial and non-financial information, and provide a comprehensive interpretation of Z-score predictive power. We aim to contribute to the literature by offering a unique and novel perspective on the Altman model's accuracy for the European air transport industry.
  • Others:

    Author, as appears in the article.: Shi, Y; Li, XN
    Department: Gestió d'Empreses
    URV's Author/s: Li, Xiaoni / Shi, Yin
    Abstract: Aviation industry is extremely vulnerable to economic turbulence or a pandemic. Over the past decade, a number of well-known European airline brands have gone into bankruptcy, with consequences such as leaving thousands of passengers stranded abroad. The present research assesses the predictive power of the updated Altman Z-score model (1983 and 2017) using data on European airline bankruptcies over the period 2009–2020. The results indicate that the Z″-score (2017) for private non-manufacturing companies shows satisfactory predictive power when applied on European aviation industry. In this study, we analyze in depth the performance of the updated Altman Z′- and Z″-scores (1983, 2017), connecting airline's financial and non-financial information, and provide a comprehensive interpretation of Z-score predictive power. We aim to contribute to the literature by offering a unique and novel perspective on the Altman model's accuracy for the European air transport industry.
    Thematic Areas: Strategy and management Psicología Management science and operations research Management of technology and innovation Management Economics Ciencias sociales Business and international management Administração, ciências contábeis e turismo
    licence for use: https://creativecommons.org/licenses/by/3.0/es/
    Author's mail: yin.shi@estudiants.urv.cat xiaoni.li@urv.cat
    Author identifier: 0000-0001-6354-5399 0000-0002-4047-4046
    Record's date: 2024-08-03
    Papper version: info:eu-repo/semantics/publishedVersion
    Licence document URL: https://repositori.urv.cat/ca/proteccio-de-dades/
    Papper original source: Managerial And Decision Economics. 45 (1): 477-491
    APA: Shi, Y; Li, XN (2024). Bankruptcy prediction for the European aviation industry: An application of the Altman model. Managerial And Decision Economics, 45(1), 477-491. DOI: 10.1002/mde.4018
    Article's DOI: 10.1002/mde.4018
    Entity: Universitat Rovira i Virgili
    Journal publication year: 2024
    Publication Type: Journal Publications
  • Keywords:

    Business and International Management,Economics,Management,Management of Technology and Innovation,Management Science and Operations Research,Strategy and Management
    Strategy and management
    Psicología
    Management science and operations research
    Management of technology and innovation
    Management
    Economics
    Ciencias sociales
    Business and international management
    Administração, ciências contábeis e turismo
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