مجلة المنهل الاقتصادي
Volume 7, Numéro 1, Pages 1337-1344
2024-06-27

The Potential Of The Kida-1981 Model In Preventing Unexpected Bankruptcy In The Algerian Manufacturing Sector

Authors : Douici Zohra .

Abstract

This article critically examines the Kida-1981 model, a widely recognized bankruptcy forecasting tool, in the context of the Algerian manufacturing sector, a key player in Algeria's economic recovery. Given the sector's significance, a good forecasting tool is not just important but crucial to prevent unexpected bankruptcies. Our empirical study, based on some healthy and sick manufacturing companies in Algeria, reveals the limitations of the Kida-1981 model in predicting bankruptcy in this context. These findings significantly affect the sector, underlining the need for more accurate and context-specific forecasting tools.

Keywords

kida-1981 model ; bankrupt ; nonbankrupt, prediction ; accuracy