Financial failure risk measurement of lodging in the COVID-19 process: An analysis of the countries in the Mediterranean bottom

Financial failure is of great importance for the continuity of lodging. Financial problems can lead to various negative effects and even jeopardize the ability of the business to sustain its existence. This situation has become even more critical for businesses, especially during the Covid-19 pandemic. The aim of this study is to determine the financial failure risk levels of 50 lodging in the Mediterranean Basin during the period 2018-2022. The risk levels of businesses were calculated using widely used models in the literature such as Altman Z, Altman Z', Altman Z'', Springate, Ohlson, Fulmer, and Ca. The purpose of the study is to analyze the financial failure risk of lodging during the Covid-19 pandemic using different models and criteria. At the end of the analysis, the financial failure risk values of the lodging were examined and interpreted. Overall, it was determined that businesses were adversely affected by the Covid-19 pandemic when looking at the models. It is believed that this study will make a significant contribution to the literature in the field. Keywords: Financial Failure Risk, Bankruptcy Risk, Bankruptcy Prediction Models, Lodging, Mediterranean Basin Countries