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 Altman Z-score for predicting bankruptcy which he published in 1968. Professor Altman is a leading academic on the High-Yield and Distressed Debt markets and is the pioneer in the building of models for credit risk management and bankruptcy prediction. He is the brother of Stuart Altman.

Altman teaches "Bankruptcy and Reorganization" and "Credit Risk Management" 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. He also teaches in the school's MBA programs and has been a Stern faculty member since 1967.

The Altman 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 an 80%–90% reliability. Altman's equation did an excellent job at distinguishing bankrupt and non-bankrupt firms.

Altman holds a B.A. in Economics, (CCNY, 1963); an MBA (UCLA, 1965); and a Ph.D. in Finance (UCLA, 1967).[1]

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 [3] in 2008. He was named one of the "100 Most Influential People in Finance" by the Treasury & Risk Management magazine in 2005. Co-founder of the International Risk Management Conference, now in its 7th year.


Altman is the author, co-author, or editor of 25 books, including:

  • Altman, Edward; Couette, J.; Narayanan, P; Nimmo, R. (2008). Managing Credit Risk, 2nd Edition. John Wiley and Sons. ISBN 0-470-11872-5. 
  • Altman, Edward; Edith Hotchkiss (2005). Corporate Financial Distress and Bankruptcy, 3rd edition. John Wiley and Sons. ISBN 0-471-55253-4. 
  • Altman, Edward (2005). A. Resti and A. Sironi, eds. Recovery Risk. ISBN 1-904339-50-6. 
  • Altman, Edward (2002). Bankruptcy, Credit Risk and High Yield 'Junk' Bonds: A Compendium of Writings. Oxford, England and Malden, Massachusetts: Blackwell Publishing. ISBN 0-631-22563-3. 
  • Altman, Edward; Roggi O. (2013). Measuring and Managing Risk. Emerging Global Standards and Regulations After the Financial Crisis. World Scientific Press LPP - Singapore. ISBN 978-981-4417-49-5. 

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