Adapting Altman Z-score models for early warning signals: Evidence from delisted mining stocks on the Johannesburg Stock Exchange
Year: 2024
Type: article
Abstract: The aim of the study is to measure the predictive prowess of adapting the Altman’s Z-score models when used to predict financial health and subsequent delisting of mining companies listed on the Johannesburg Stock Exchange between 1994 and 2021. The study applied Altman’s Z-score models to the financials of listed mining companies to measure the adaptability of the model for predicting the financial health status of mining companies and subsequent delisting in 1-, 2- and 3-years’ time against the actual listing status of each company in the sample over corresponding time horizons. Key findings indicate that both models reliably predict delisting when the horizon is only a year in the future.
Source: Investment Analysts Journal
Authors: Nigel Matanga, Glen Holman
Institution: University of Cape Town
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4402982376