Edward Altman
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Edward I. Altman (born 1941) 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,[1] and for both the Master of Science in Global Finance (MSGF) and Master of Science in Risk Management Program for Executives (MSRM). (MSGF[2] is jointly offered by NYU Stern and the Hong Kong University of Science and Technology. MSRM [3] is offered by NYU Stern, in partnership with the Amsterdam Institute of Finance.[4]) 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.
Professor Altman holds a B.A. in Economics, (CUNY, 1963); an MBA (UCLA, 1965); and a Ph.D. in Finance (UCLA, 1967).[1]
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 [5] in 2008. He was named one of the "100 Most Influential People in Finance" by the Treasury & Risk Management magazine in 2005.
[edit] Books
Dr. Altman is the author, co-author, or editor of 25 books, including:
- Altman, Edward; J. Couette, P Narayanan and R. Nimmo (2008). Managing Credit Risk, 2nd Edition. John Wiley and Sons. ISBN 0470118725.
- Altman, Edward; Edith Hotchkiss (2005). Corporate Financial Distress and Bankruptcy, 3rd edition. John Wiley and Sons. ISBN 0471552534.
- Altman, Edward (2005). Recovery Risk. ISBN 1904339506.
- Altman, Edward (2002). Bankruptcy, Credit Risk and High Yield ‘Junk’ Bonds: A Compendium of Writings. Oxford, England and Malden, Massachusetts: Blackwell Publishing. ISBN 06312256233.
