SYMPTOMS OF BANKRUPTCY AND PREDICTION MODELS OF BANKRUPTCY RISK
SYMPTOMS OF BANKRUPTCY AND PREDICTION MODELS OF BANKRUPTCY RISK

Summary/Abstract: This paper makes a brief literature review on symptoms of bankruptcy and prediction models of bankruptcy risk. When it comes to bankruptcy we must start from the symptoms that lead to the financial failure of a company. Financial failure or bankruptcy of a company is an event that may cause losses to banks, suppliers, shareholders and the wider community; they are interested in predicting bankruptcy of a company and how and when it will fail. Bankruptcy is often a consequence of the inefficiency of an enterprise and the decision of stakeholders to recover investments by issuing a declaration of bankruptcy. A survey of the literature shows that most international studies in failure prediction involving MDA (Multiple Discrimination Analysis).

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