The Application of Altman & Springate Models In Bankruptcy Prediction of Accepted Companies In Tehran Stock Exchange
Subject Areas : Futurology
A.
Mohammadzadeh
1
(نویسنده مسئول یا طرف مکاتبه)
M.
Noferesti
2
(ندارد)
Keywords: Bankruptcy Prediction, Altman Model, Springate Model, Working Capital, Retained Erning, Erning
, 
, Before Interest and T, Erning Before Tax, Eqity, total assets, Sales,
Abstract :
The investors are always trying to prevent from losing their capital ad interest through predicting theprobability of the bankruptcy of a Company since in the event of the bankruptcy, value of thesecurities decreases intensely. So, the investors are looking for methods by which they could predictthe bankruptcy of the Companies. Moreover, one of the issues discussed 'in financial management isthe investment and trust in the investment and one of the things that could help the investors to makeright decisions in their investments is the existence of some tools and models for the assessmenl offinancial status and the condition of the Organizations.The purpose behind this research is to determine the efficiency of Altman and Springate Models inpredicting the bankruptcy of a Company. The statistic Community on which this research was 'madeis~ the successful and bankrupted Companies in Tehran's Security Exchange and the required Data tomake this research is collected in a period of five years (2001-2006). After calculating the ratiosexistent in the models and determining z index, accuracy and error for each of the models arecalculated .Regarding the results obtained from the, research, both, of Altman and Springate Models have thecapability to predict 'the bankruptcy of the Companies in Tehran's security Exchange while AltmanModel enjoys from more accuracy in comparison with Springate Model. So, the prospective investors,shareholders and others are recommended to use Altman Model in predicting the bankruptcy of theCompanies accepted in Tehran 's Security Exchange.
