PREDICTORS OF FINANCIAL DISTRESS AND BANKRUPTCY MODEL CONSTRUCTION

The aim of this paper is to prepare the bankruptcy model construction. In the first part multivariate discriminant analysis and its possibilities in deriving predictive models are characterised. In the second part the possibly indicators/predictors of financial distress of companies which could be included in the new bankruptcy model are defined. The method is the comparison of different views on what factors affect the company's financial situation and the comparison of indicators included in the model that was constructed in the past (with special regard to the models in transition economics). The result is a collection of 39 indicators to be verified in the next stage of the research project employing the multiple discriminant analysis method to specify which of them are to be included into the new model.