Hazard Function as a Tool to Diagnose Business Liquidation

Research of firms cohorts, such as human cohorts, are carried out by means of the methods of survival analysis (duration). The paper presents the possibility of using expectancy tables and intensity function (hazard) of firms liquidation. This function may take a typical shape such as shape of a “bathtub” – the intensity of deaths, or the shape of an inverted U – the intensity of firms liquidations.