Edward Altman
Encyclopedia
Edward I. Altman is a Professor of Finance at New York University
`s Stern School of Business. He is best known for the development of the Z-Score for predicting bankruptcy
which he published in 1968. He is the brother of Stuart Altman
.
Professor Altman teaches "Credit and Counterparty Risk" in the Risk Management Open Enrollment program for Stern Executive Education, as well as on the TRIUM Global Executive MBA Program, an alliance of NYU Stern, the London School of Economics
and HEC School of Management
, and for both the Master of Science in Global Finance (MSGF) and Master of Science in Risk Management Program for Executives
(MSRM). (MSGF is jointly offered by NYU Stern and the Hong Kong University of Science and Technology
. MSRM is offered by NYU Stern, in partnership with the Amsterdam Institute of Finance
.) He also teaches in the school's MBA programs and has been a Stern faculty since 1967.
The Z-Score is a multivariate formula for a measurement of the financial health of a company and a powerful diagnostic tool that forecasts the probability of a company entering bankruptcy
within a 2 year period. Studies measuring the effectiveness of the Z-Score have shown that the model has a 70%-80% reliability. Altman's equation did a good job at distinguishing bankrupt and non-bankrupt firms. Of the former, 94% had Z scores less than 2.7 before they went bankrupt. In contrast, 97% of the non-bankrupt firms had Z scores above this level. In 2011, Dr. Altman co-created Altman Z-Score Classic Mobile App .
Professor Altman holds a B.A. in Economics, (CUNY, 1963); an MBA (UCLA, 1965); and a Ph.D.
in Finance
(UCLA, 1967).http://w4.stern.nyu.edu/faculty/static/cv/cv_ealtman_20110712.pdf
Dr. Altman was inducted into the Fixed Income Society's Hall of Fame in 2001 and was amongst the inaugural inductees into the Turnaround Management's Hall of Fame in 2008. He was named one of the "100 Most Influential People in Finance" by the Treasury & Risk Management magazine in 2005.
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
`s Stern School of Business. He is best known for the development of the Z-Score for predicting bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
which he published in 1968. He is the brother of Stuart Altman
Stuart Altman
Stuart H. Altman is an economist whose research interests are primarily in the area of federal and state health policy. He is the Sol C...
.
Professor Altman teaches "Credit and Counterparty Risk" in the Risk Management Open Enrollment program for Stern Executive Education, as well as on the TRIUM Global Executive MBA Program, an alliance of NYU Stern, the London School of Economics
London School of Economics
The London School of Economics and Political Science is a public research university specialised in the social sciences located in London, United Kingdom, and a constituent college of the federal University of London...
and HEC School of Management
HEC School of Management
HEC Paris or École des Hautes Études Commerciales de Paris is one of the foremost business schools in France and in Europe. It was created in 1881 by the Paris Chamber of Commerce and Industry on the model of French Grandes Ecoles and has progressively become one of the most selective graduate...
, and for both the Master of Science in Global Finance (MSGF) and Master of Science in Risk Management Program for Executives
Master of Science in Risk Management Program for Executives
The Master of Science in Risk Management Program for Executives is a joint-venture with NYU's Stern School of Business and the Amsterdam Institute of Finance...
(MSRM). (MSGF is jointly offered by NYU Stern and the Hong Kong University of Science and Technology
Hong Kong University of Science and Technology
The Hong Kong University of Science and Technology is a public university located in Hong Kong. Established in 1991 under Hong Kong Law Chapter 1141 , it is one of the nine universities in Hong Kong.Professor Tony F. Chan is the president of HKUST...
. MSRM is offered by NYU Stern, in partnership with the Amsterdam Institute of Finance
Amsterdam Institute of Finance
The Amsterdam Institute of Finance, or AIF, is a financial training and education institute in the Netherlands with a focus on global programs. The AIF, which operates as a non-profit foundation, was founded in 1990 as a joint venture between government officials and the Dutch financial...
.) He also teaches in the school's MBA programs and has been a Stern faculty since 1967.
The Z-Score is a multivariate formula for a measurement of the financial health of a company and a powerful diagnostic tool that forecasts the probability of a company entering bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
within a 2 year period. Studies measuring the effectiveness of the Z-Score have shown that the model has a 70%-80% reliability. Altman's equation did a good job at distinguishing bankrupt and non-bankrupt firms. Of the former, 94% had Z scores less than 2.7 before they went bankrupt. In contrast, 97% of the non-bankrupt firms had Z scores above this level. In 2011, Dr. Altman co-created Altman Z-Score Classic Mobile App .
Professor Altman holds a B.A. in Economics, (CUNY, 1963); an MBA (UCLA, 1965); and a Ph.D.
Ph.D.
A Ph.D. is a Doctor of Philosophy, an academic degree.Ph.D. may also refer to:* Ph.D. , a 1980s British group*Piled Higher and Deeper, a web comic strip*PhD: Phantasy Degree, a Korean comic series* PhD Docbook renderer, an XML renderer...
in Finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
(UCLA, 1967).http://w4.stern.nyu.edu/faculty/static/cv/cv_ealtman_20110712.pdf
Dr. Altman was inducted into the Fixed Income Society's Hall of Fame in 2001 and was amongst the inaugural inductees into the Turnaround Management's Hall of Fame in 2008. He was named one of the "100 Most Influential People in Finance" by the Treasury & Risk Management magazine in 2005.