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Article

Cross-Country Application of Manufacturing Failure Models

1
Department of Operations Research and Business Intelligence, Wrocław University of Science and Technology, Wybrzeże Wyspiańskiego 27, 50-370 Wrocław, Poland
2
Collegium of Business Administration, SGH Warsaw School of Economics, al. Niepodległości 162, 02-554 Warsaw, Poland
*
Authors to whom correspondence should be addressed.
J. Risk Financial Manag. 2020, 13(2), 34; https://doi.org/10.3390/jrfm13020034
Received: 14 January 2020 / Revised: 10 February 2020 / Accepted: 13 February 2020 / Published: 18 February 2020
(This article belongs to the Special Issue Modern Methods of Bankruptcy Prediction)
The post-Altman models suffer from moral amortization. This paper asks whether models developed in one country can be applied in other economies. One of the characteristics of the prediction model is that a date drives the estimation. Thus, the estimated model based on one economy is not necessarily applicable to other economies. To verify such a statement, we carried out a literature review to identify the manufacturing models constructed during the last 30 years that were reported in reputable scientific journals. Our literature comprised 75 papers, and with the application of the citation count and citation mining, we selected a sample and traced the selected papers to the cross-country application. Our results indicated an existing gap in the cross-economy validation of existing manufacturing models. Our study has implications for policy, as the application of the prediction models to cross-economies’ consolidated financial statements is biased. View Full-Text
Keywords: failure; bankruptcy; chapter 11; regression count; meta-analysis; literature review; manufacturing insolvency; prediction; citation mining failure; bankruptcy; chapter 11; regression count; meta-analysis; literature review; manufacturing insolvency; prediction; citation mining
MDPI and ACS Style

Tomczak, S.K.; Staszkiewicz, P. Cross-Country Application of Manufacturing Failure Models. J. Risk Financial Manag. 2020, 13, 34. https://doi.org/10.3390/jrfm13020034

AMA Style

Tomczak SK, Staszkiewicz P. Cross-Country Application of Manufacturing Failure Models. Journal of Risk and Financial Management. 2020; 13(2):34. https://doi.org/10.3390/jrfm13020034

Chicago/Turabian Style

Tomczak, Sebastian Klaudiusz, and Piotr Staszkiewicz. 2020. "Cross-Country Application of Manufacturing Failure Models" Journal of Risk and Financial Management 13, no. 2: 34. https://doi.org/10.3390/jrfm13020034

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