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Issues and Challenges for Bankruptcy Risk Assessment in Bulgarian Companies

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  • Atanas Delev

Abstract

The main purpose of this paper is to analyze the key issues and challenges in assessing the risk of bankruptcy in Bulgarian companies. The results of seven bankruptcy prediction models are analyzed. Significant differences were found between the forecasts that give certain models. The error of the second type of bankruptcy prediction models was analyzed. Certain models have satisfactory error values of the second type, while others have too high values of this error. There is a need of a bankruptcy prediction model that offers adequate performance.

Suggested Citation

  • Atanas Delev, 2016. "Issues and Challenges for Bankruptcy Risk Assessment in Bulgarian Companies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 118-136.
  • Handle: RePEc:bas:econst:y:2016:i:3:p:118-136
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    More about this item

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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