Corporate Bankruptcy Prediction Models: A Comparative Study for the Construction Sector in Greece

Abstract

This study focuses on testing the efficiency of alternative bankruptcy prediction models (Altman, Ohlson, Zmijewski) and on assessing the possible reasons that led to the confirmation or not of the prevailing model. Data from financial statements of listed (Greek) construction companies before the economic crisis were utilized. The results showed that Altman’s main predictive model as well as the revised models have low overall predictability for all three years before bankruptcy.

Keywords

• corporate bankruptcy
• construction sector
• accounting indicators
• Altman Z-score
• Logit
• Probit