Early warning indicator applied to enterprises that make up the prices and quotation index of Mexican Stock Exchange.

Financial difficulties are not an avoidable situation in the future for any company. This situation could emerge due to the combined effects of excessive financial leverage and greater competitiveness in markets. These factors are relevant when they are accompanied by economic crises or financial di...

Descripción completa

Detalles Bibliográficos
Autor Principal: De la Vega Meneses, José Gerardo
Formato: Artículo (Article)
Lenguaje:Español (Spanish)
Publicado: Universidad Santo Tomás, Bogotá-Colombia 2017
Materias:
Descripción
Sumario:Financial difficulties are not an avoidable situation in the future for any company. This situation could emerge due to the combined effects of excessive financial leverage and greater competitiveness in markets. These factors are relevant when they are accompanied by economic crises or financial difficulties in the international economic situation, affecting as the headquarters and the countries in which the company has facilities and develops its activities. In this context, it is possible to evaluate the degree of resilience of companies using analysis of financial statements. A model based on this financial analysis that has been used since decades ago in predicting bankruptcy of companies is the “Z-score” model developed by Edward Altman. The Z-score, which can be applied mainly to companies traded on stock exchanges, has been used in the present study in order to estimate the probability of bankruptcy of the companies that comprise the Mexican Stock Exchange, at the end of the year 2015.