PREDICTING FINANCIAL DISTRESS OF SLOVAK AGRICULTURAL ENTERPRISES

The paper focuses upon the predictive validity of Chrastinová’s CH-Index and Gurčík’s G-Index devised for predicting financial distress of Slovak agricultural enterprises and confronts them with Altman's bankruptcy formula. Its aim is to verify whether these out-dated models preserve their usefulness in newer conditions of Slovak agribusinesses and whether they may be improved by redefining the cut-off points used in separating distressed and non-distressed enterprises. Using a data sample on Slovak agricultural enterprises for the period from 2009 until 2013, it is ascertained that the G-Index with redefined cut-off points may be tentatively recommended for financial distress prediction showing a balanced trade-off between distress and non-distress prediction accuracy.