Adapting parameters contained in the Model Z of Altman to the reality of the Peruvian economy
| Areas | : | Employment, productivity and innovation |
|---|---|---|
| Researcher/s in charge | : | |
| Execution time | : | October 2017 |
Presentation
The use of predictive models of firms with financial problems is useful as indirect indicators of the potential risk of tax non-compliance, since firms with such problems may be encouraged to use evasion or circumvention mechanisms in order to finance themselves with taxes. One of these models is the Model Z of Edward Altman built from some indicators taken from the financial statements of firms whose aim is to predict the probability of bankruptcy of companies in a medium-term horizon. However, the estimation of the parameters contained in Altman’s Model Z was made with information from firms from other economic realities, which is why statistical or econometric work is required to adapt such parameters to the productivity exhibited by firms in Peru.
