Bankruptcy risk and financial sustainability: a comparative study of the Altman, Conan-Holder and Taffler models

Abstract

This study investigates the bankruptcy risk of Romanian enterprises by comparative application of traditional quantitative models Altman Z-Score, Conan-Holder and Taffler, analyzed in correlation with the integration of financial sustainability indicators. Based on a sample of 152 companies, mostly SMEs, the research highlights the importance of indicators reflecting financial autonomy and operational efficiency, as well as the relevance of non-financial information in assessing the bankruptcy risk. The results show that over 80% of respondents consider this information essential, and approximately 45% support the integration of sustainability indicators in traditional bankruptcy prediction models. The empirical analysis indicates a significant correlation between the implementation of social responsibility and sustainability principles and the reduction in the probability of financial difficulties. These findings support the need to adopt traditional risk assessment tools to integrate sustainability indicators, highlighting the direct link between sustainable financial performance and organizational resilience. Thus, the study contributes to expanding the current concept of financial sustainability, demonstrating how the integration of social responsibility and sustainable practices can improve the accuracy of bankruptcy risk prediction and support more effective financial risk management.