Determination and Analysis of Actual IN05 Accuracy in Prediction of Creditworthiness Cover Image

Determination and Analysis of Actual IN05 Accuracy in Prediction of Creditworthiness
Determination and Analysis of Actual IN05 Accuracy in Prediction of Creditworthiness

Author(s): Michal Kuběnka, Aneta Bolečkova
Subject(s): Business Economy / Management, Evaluation research, Financial Markets
Published by: Masarykova univerzita
Keywords: creditworthiness; index IN05; economic value added; ROE;
Summary/Abstract: The IN05 is considered as the most accurate financial model that predicts the creditworthiness of the company in a measurable way. IN05 was based on the financial data from 2004. It is an updated version of the model IN01 that showed different predictive ability in verifying in 2005, only 4 years after its creation. The situation in the manufacturing industry evolves, and with following 8 years the risk-free rates, interest rates, risk rates and sector averages have changed. The question is how much the ability of IN05 to predict economic value added (EVA) has changed in consequence of it.

  • Page Range: 335-342
  • Page Count: 8
  • Publication Year: 2015
  • Language: English