Detecting Differences Between Financial Distress Method Results and Stock Choosing Performance on Manufacturing Companies Listed on BIST Between 2017 - 2019
Keywords:
Financial distress, Portfolio management, Stock choosing, ComparisonAbstract
This research aimed to find whether there is a difference between Modified Altman Z score, Springate S score, Zmijewski score and Grover score results. 2017-2019 Istanbul Stock Exchange manufacturing sector firms are evaluated and compared with using descriptive statistics. Also stock choosing performances of financial distress methods tested and compared with yearly revenue rates. This research concluded that financial distress analysis results have different results. Springate S score was the analysis that showed most firms compared to others while Grover score was the analysis that showed least firms as financially distressed compared to other methods. Analysis results didn’t show any difference between sub-sectors individually, according to Kruskal-Wallis analysis results. Furthermore five best and worst firms are choosed according to analysis results and their reveue rates are compared. Analysis showed that every financially healthy firms portfolio had about %20 revenue except Modified Altman Z’’ score method. Also found that every financial distress method are successful at indicating non-profitable stocks.
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