“Slice-Of-Life” customization of bankruptcy models: Belarusian experience and future development
“Slice-Of-Life” customization of bankruptcy models: Belarusian experience and future development

Summary/Abstract: After the recent financial crisis commencing in 2007, bankruptcy prediction has become a major concern and, as a result, today we have lots of different approaches to the bankruptcy prediction models but all of them full of limitations. Because of this (and not only) neither the Altman models nor other more recent models (partitioning algorithm, survival analysis, expert systems, neural networks, etc.) are recommended for use with financial companies. In order to overcome these limitations in modern Belarusian practice suffering from a lack of developed bankruptcy theory it is not enough to transfer foreign practice automatically to the reality of its national evolving economic conditions. This study attempts to show how a “Slice-Of-Life” approach, based on national circumstances and priorities, can be used to improve the temporal stability of the accuracy of a financial failure models for Belarusian companies.

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