TITLE:
Prediction of Bankruptcy Using Financial Ratios in the Greek Market
AUTHORS:
George Giannopoulos, Sindre Sigbjørnsen
KEYWORDS:
Bankruptcy, Financial Ratios, Forecasting Ability, Prediction Models
JOURNAL NAME:
Theoretical Economics Letters,
Vol.9 No.4,
April
29,
2019
ABSTRACT: This
study explores the forecasting ability of bankruptcy prediction models for
firms listed on the Athens Stock Exchange. The models have been tested whether
they are able to predict bankruptcy one, two and three years prior bankruptcy.
The highest bankruptcy predictive accuracy is achieved by the Taffler’s and
Grammatikos and Gloubos’ Y models. Early and accurate sign of bankruptcy helps businesses take necessary
actions to solve financial distress; hence the Greek bankruptcy prediction
models will help companies minimize risk.