Corporates bankruptcy analysis and prediction

Abstract

The importance of bankruptcy is analyzed by different authors. Presented bankruptcy signs determine bankruptcy of enterprises also internal and external causes of bankruptcy. We review advantages of bankruptcy and propose recommendations, present measures which can help to avoid bankruptcy and also examine necessity of bankruptcy prediction presenting positive and negative consequences of bankruptcy. There are offered the newest solutions ways of bankruptcy in Lithuania. We review relative financial proportions whose we predict the bankruptcy. It is presented the bankruptcy prognostication models classification, linear discriminant analysis – counting of Altman model, logistical regressions – counting of Zavgren model, the tree of solutions and neuron network decisions.