PREDICTING CORPORATE FAILURE INSIGHTS FROM THE FINANCIAL SECTOR IN ZIMBABWE

The collapse of the some of the financial institutions indicates a need for Zimbabwe to utilise and even develop a reliable model which accurately predicts corporate health within companies. This study examines corporate failure prediction in a developing country in Southern Africa using Altman’s Z-score model. A sample of financial institutions listed on the Zimbabwe Stock Exchange is tested for the Z-score to predict possible failure or bankruptcy within the financial sector in Zimbabwe. Using financial data from the years 2011 to 2013 the study concludes that 83.33 % of listed financial sector firms are under distress, 16.67 % are under the grey area and no financial sector institution is in the safe zone. This study adds to the discourse on the stability of the financial sector in Zimbabwe, and seeks to assist the general public and investors on the financial health of institutions in the financial sector in Zimbabwe