Bankruptcy Analise of Italian Startups: Altman Z - Score Model

Abstract

The Altman Z-score model has been used to predict the bankruptcy of a company since the late 1960s. The formula, developed by Edward I. Altman, was used in this dissertation to speculate the financial distress of companies, using as a sample a certain number of Italian startups. Since the formula has been adapted over the years to different types of companies, this thesis uses the formula for privately owned companies, also called Z'. In essence, the coefficients have different values and in this model the variable X4 with the market value of equity has been replaced by the book value of equity (1983). The startups were selected based on the available data they had published in the Aida (BvD) database. The selected companies have available data to perform an analysis of at least the last five years. The methodology of selecting the companies and the way their data were analyzed are discussed and presented in the different chapters of this dissertation. At the end, conclusions are drawn by examining the figures and the results for each company.