journal of sustainable studies joss
Using the ALTMAN Model to Predict Financial Failure
An applied study of a sample of companies listed on the Iraq Stock Exchange
Dr. Abdullah Kazem Hassan Al-Saeedi, the researcher Yasser Balasim Muhammad Al-Darraji
College of Administration and Economics / Al-Qadisiyah University
Abstract:
Companies face problems and difficulties that affect their economic activities, and this may lead to financial failure that leads to a decline in the company’s revenues, slackening of its production processes and a decrease in its market share, which results in difficulty in measuring its economic performance, and the weakness of the company’s management by following up forecasting financial failure and economic performance to find out success or bankruptcy Companies through their inability to pay their financial obligations when due. When these markets are represented by a group of different and important sectors from which the study sample was formed, where the number of companies that were analyzed reached (22) Iraqi companies distributed among the same as those of the industrial sector (8) companies and the agricultural sector (5) companies and the service sector (3) companies, followed by The investment sector (2) two companies and insurance (2) two companies and hotels (2) two companies as well. ”The study period was limited (5) years from (2013-2017) on the basis of the time period for the purpose of reaching results in light of the data withdrawn from the Iraqi Stock Exchange Finance has been subject to a set of indicators, the Altman model, returns and risk.
Key words: (ALTMAN model, forecasting, financial failure, stock).