FINANCIAL HEALTH OF COMPANIES SUPPORTED BY EUROPEAN FUNDS
Keywords:Financial health, Altman prediction model, financial support programmes, Czech Republic
AbstractThis article is focused on the financial health of companies supported by European funds in the Czech Republic. Czech financial support programmes use their own prediction formulas. Each programme has its own methodology. Results of specific model which is used by ROP NUTS II North-East Operational programme will be compared with results which will be provided by Altman prediction model. The Altman Z-Score was originally published in 1968, and is used as an easy formula and is globally accepted. In reality programmes support not only enterprises but also nongovernmental organizations, regions, municipalities and public companies. We are interested in business concept, so we will pay attention only to enterprises and their financial health. Results will be statistically evaluated. As the conclusion, a comparison of specific approaches and the Altman formula will be presented.