Multivariate analysis of bankruptcy on the example of building industry

Abstract

The main purpose of this research is to examine the different factors affecting the predictive power of bankruptcy models as for example: the way of defining “bankruptcy”, the elimination, or not of the multicollinearity appearing in formalized model, the stability of time-related financial ratios as a stability determinant of formalized and non-formalized models and so on. Some general conclusions were formulated about: effectiveness of formalized and non-formalized model, population homogeneity factor, a model worked out for a multi-industry population and used in single-industry population and so on.bankruptcy prognosing, logit models application, financial factors