<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This article is devoted to the issue of assessing the causes of business failure. The presented studies answer two research questions – what are the causes of corporate bankruptcies in Poland and how to more effectively predict the scale of bankruptcies in the country. The author has conducted a study to analyze the specific endogenous and exogenous causes of company bankruptcy depending on the type of the bankruptcy with consideration of the three different phases of the crisis in enterprises. The research is based on 185 companies (60 bankrupt and 125 non-bankrupt firms) listed on the Warsaw Stock Exchange. For each company the author has calculated 14 different financial ratios for each of the six years before classifying the firm as bankrupt or non-bankrupt.</p><p>The author has also done research to identify specific macroeconomic variables affecting the bankruptcy process of the companies in Poland. This provided specification of the manner and how strongly the various factors affect the quantity and intensity of bankruptcy applications in this region of Europe. Additionally, with the use of selected macroeconomic variables the author programmed a fuzzy logic model to forecast the general intensity of bankruptcies in Poland. This study is the first attempt at using fuzzy logic to predict the risk of bankruptcy in a macro aspect. The results demonstrate the great potential of this method. The received effectiveness of the fuzzy logic model is at the level of 84%.</p></abstract>

This article is devoted to the issue of assessing the causes of business failure. The presented studies answer two research questions – what are the causes of corporate bankruptcies in Poland and how to more effectively predict the scale of bankruptcies in the country. The author has conducted a study to analyze the specific endogenous and exogenous causes of company bankruptcy depending on the type of the bankruptcy with consideration of the three different phases of the crisis in enterprises. The research is based on 185 companies (60 bankrupt and 125 non-bankrupt firms) listed on the Warsaw Stock Exchange. For each company the author has calculated 14 different financial ratios for each of the six years before classifying the firm as bankrupt or non-bankrupt.The author has also done research to identify specific macroeconomic variables affecting the bankruptcy process of the companies in Poland. This provided specification of the manner and how strongly the various factors affect the quantity and intensity of bankruptcy applications in this region of Europe. Additionally, with the use of selected macroeconomic variables the author programmed a fuzzy logic model to forecast the general intensity of bankruptcies in Poland. This study is the first attempt at using fuzzy logic to predict the risk of bankruptcy in a macro aspect. The results demonstrate the great potential of this method. The received effectiveness of the fuzzy logic model is at the level of 84%.

Evaluation of the factors influencing business bankruptcy risk in Poland

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Evaluation of the factors influencing business bankruptcy risk in Poland"}

This article is devoted to the issue of assessing the causes of business failure. The presented studies answer two research questions – what are the causes of...

Evaluation of the factors influencing business bankruptcy risk in Poland

Data publikacji: 30 mar 2018

Zakres stron: 22 - 35

Otrzymano: 25 maj 2016

Przyjęty: 30 maj 2017

DOI: https://doi.org/10.1515/fiqf-2016-0020

Słowa kluczowe
financial crisis, bankruptcy causes, phases of financial crisis, fuzzy logic

© 2017 Tomasz Korol, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Evaluation of the factors influencing business bankruptcy risk in Poland

Data publikacji: 30 mar 2018

Zakres stron: 22 - 35

Otrzymano: 25 maj 2016

Przyjęty: 30 maj 2017

DOI: https://doi.org/10.1515/fiqf-2016-0020

Słowa kluczowefinancial crisis, bankruptcy causes, phases of financial crisis, fuzzy logic

© 2017 Tomasz Korol, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
financial crisis, bankruptcy causes, phases of financial crisis, fuzzy logic