Financial sustainability of enterprises in two sub-shires in the territory of Nógrád
Keywords:
corporate bankruptcy models, Altman's Z-score, peripheral regionsAbstract
The study examines the enterprises of two peripheral sub-shires located in Nógrád, alongside the town-village duality, from an unusual aspect. The research methodology was testing with bankruptcy models the principle of going concern in relation to enterprises, among the active corporations in the Balassagyarmat and Nógrád sub-shires. The model testing was not aiming for predicting bankruptcies, but rather for assessing the financial sustainability of the enterprises operating in the two sub-shires. The novelty of the research was in its conclusions: the authors found that the probability of bankruptcy is lower in case of those enterprises, which operate in rural areas than of those in the towns. The reason can be found in the different management practices and financing attitudes of family businesses.
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