| Abstract [eng] |
As the number of companies, as well as competition between them is constantly increasing, more and more businesses experience financial difficulties, which influence further activities. Bankruptcy is an economic term which usually has a negative effect not only on the company but also on society. The financial state of the company is of crucial importance not only for the CEO but also for investors, employees, as well as creditors. Therefore, such research is of great relevance, as it is unlikely for investors to invest in the company if they see that its financial conditions are poor. Furthermore, in this case creditors are not likely to give a loan if they foresee that the company might collapse. Thus, in order to ensure successful and long-term functionality of the company, it is significant for the company’s CEO and board to evaluate the financial situation of the business properly. One of the means which might be applicable is to use a bankruptcy prediction model. Applying such a model enables one to foresee the threat of bankruptcy. Therefore, a company might make proper decisions providing opportunity to continue its activities as well as to avoid the bankrupt. |
