Predicting Financial Distress in Companies Using the Original CCB Model

The aim of this research was to present a new methodology for the assessment of financial health of a company, called the Come Clean Bankruptcy (CCB) model. The ultimate objective of the model is to detect the signs of impending bankruptcy based on a set of selected financial indicators reflecting the capital structure, liquidity and overall growth of the company. The CCB model was applied on a data sample comprising 199 entities operating in the textile/clothing industry in the Czech Republic. The outputs were compared with the actual development of those companies in 2013-2020 in order to assess whether the model can be effectively employed in practice. especially in court proceedings, specialization criminal law. Courts are often faced with the question of determining the date on which a bankruptcy situation arose. The CCB model evaluates past data. Therefore, it is a suitable tool for proving whether the management knew about the economic development of the company.