Constructing models for predicting financial distress of small and medium enterprises requires its own treatment, because these firms differ from large campanies. The aim of this paper is to quantify the predictive power of selected ratios and to develop a statistical model for financial...

Constructing models for predicting financial distress of small and medium enterprises requires its own treatment, because these firms differ from large campanies. The aim of this paper is to quantify the predictive power of selected ratios and to develop a statistical model for financial...

The problem: Much of finance theory is based on the efficient market hypothesis. According to this hypothesis, the prices of financial assets, such as stocks, incorporate all information that may affect their future performance. However, the translation of publicly available information into...