Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Predicting Financial Distress with the CCB Bankruptcy Model

Author(s): Vitezslav Halek

The aim of this research was to present a new methodology for the assessment of financial health of a company, called the Come Clean Bankruptcy (CCB) model. The ultimate objective of the model is to detect the signs of impending bankruptcy based on a set of selected financial indicators reflecting the capital structure, liquidity and overall growth of the company. The CCB model was applied on a data sample comprising 199 entities operating in the textile/clothing industry in the Czech Republic. The outputs were compared with the actual development of those companies in 2013-2020 in order to assess whether the model can be effectively employed in practice.

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