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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

A Review of Bankruptcy and its Prediction

Ahmad Ahmadpour Kasgari, Seyyed Hasan Salehnezhad, Fatemeh Ebadi

Open access

Bankruptcy is one of the key issues across the globe which influences the economy of all the countries. Heavy social investigating the research literature and providing some definitions on bankruptcy and its reasons, we will deal with different modes of predicting bankruptcy in two groups of parametric and non-parametric. Non-parametric methods such as neural networks have high level efficiency and accuracy due to their unique features compared to statistical model.and economic costs which are imposed by bankrupted companies on stockholders can cause motivation of researchers in providing different methods for predicting bankruptcy.