Industrial enterprises bankruptcy forecasting

Abstract

This paper addresses problems of bankruptcy prediction. It has been oriented by past and recent situations in the Czech Republic. A brief overview of authors from abroad, who have been involved in investigations of this subject, is given. The circulation of capital is described inclusive intrusive factors that disturb capital’s circulation hampering economic functioning of corporate businesses, which may lead to their final demise. A set of indicators has been specified that reflect the circulation of capital, and which provide for employing a statistical process – discriminate analysis – that links the probability of a corporate business default to these indicators.