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