Estimating Re-Evaluation of the Risk Report Obtained Using the Altman Z-Score Model in Mergers with Neutrosophic Numbers

Abstract

The Altman Z-Score model, introduced by Edward Altman in 1968, is one of the most common models used in financial risk analysis. However, although it is a widely used model, many theories against the growing uncertainty of our daily lives have been replaced by theories modeled by more complex sets of numbers that are nonlinear. Therefore, the necessity of evaluating the financial uncertainty situation with different and innovative methods has emerged for the models obtained. When looking at the studies in the literature with the use of the Altman Z-score model, it shows that the predictive power of the Z-score model is quite high. This model is a model that can be applied by using the data in the balance sheet and income statement, which are among the basic financial statements in accounting. In this study, the Altman Z-score model was arranged according to the neutrosophic numbers of some data from the balance sheet and income statement of the two companies, and a nonlinear study was compared with the classical Altman Z-score model. As a result of the study, it was predicted that the results obtained with the Altman Z-score and neutrosophic numbers have more positive results in company mergers than the formula found by the discriminant method, and the instability situations will decrease as a result of the merger of the company.