This study predicts corporate bankruptcy five years before its occurrence using financial ratios introduced in Altman’s z-score model and current ratio. Three estimation methods namely; liner probability, Logit and Probit models have chosen for model estimation. The sample contains 134 companies in Tehran Stock Exchange during 2003. The precision of prediction of the estimated models for the main sample is about 78 percent. The Logit model provides the most accurate of out-of-sample prediction, with 75 percent precision. .. .. .. .. .. .. .. .. .. .. .. .. ..
Panahi, H., Asadzadeh, A., & Jalili Marand, A. (2014). A Five-Year-Ahead Bankruptcy Prediction: the Case of Tehran Stock Exchange. Financial Research Journal, 16(1), 57-76. doi: 10.22059/jfr.2014.51840
MLA
Hossein Panahi; Ahmad Asadzadeh; Alireza Jalili Marand. "A Five-Year-Ahead Bankruptcy Prediction: the Case of Tehran Stock Exchange". Financial Research Journal, 16, 1, 2014, 57-76. doi: 10.22059/jfr.2014.51840
HARVARD
Panahi, H., Asadzadeh, A., Jalili Marand, A. (2014). 'A Five-Year-Ahead Bankruptcy Prediction: the Case of Tehran Stock Exchange', Financial Research Journal, 16(1), pp. 57-76. doi: 10.22059/jfr.2014.51840
VANCOUVER
Panahi, H., Asadzadeh, A., Jalili Marand, A. A Five-Year-Ahead Bankruptcy Prediction: the Case of Tehran Stock Exchange. Financial Research Journal, 2014; 16(1): 57-76. doi: 10.22059/jfr.2014.51840
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