Financial failure prediction models (Sherrord, Kida & Altman) and their compatibility in the Iraqi environment - a study in a sample of Iraqi industrial companies

Abstract

The study sought to shed light on models for predicting financial failure and the extent to which they can be applied in the Iraqi environment to a group of industrial companies listed in the Iraqi Stock Exchange. The study relied on three models specialized in predicting financial failure, which are the (Altman, Kida & Sherrod) in order to identify the extent to which these models can be applied to detect financial failure in the Iraqi environment, and is it possible to obtain the same results to predict failure or similarly to some extent What is in each model of financial failure? The results of the study reached a set of results, the most important of which is that there is an agreement between the Altman & Kida models to a large extent, as it achieves close and reliable results in analyzing the activity to improve the company’s performance in the future, while the results proved the incompatibility between the Sherrod model and the rest of the other models.