Bankruptcy prediction model for listed companies in Greece

This paper deals with the ever-increasing issue of bankruptcy prediction in distressed economies. Specifically, aim this study is to create a model by establishing new set predictor variables, which achieves significant discrimination among listed manufacturing firms Greece, using multivariate discriminant analysis (MDA). An equally balanced matched sample 28 Greek-listed was used covering period from 2008 2015 (including all that went bankrupt between 2008–2015). It found quick ratio, cash flow interest coverage, and economic value added (EVA) divided total assets are for predicting Greece. The (DA) comprised aforementioned variables correctly classified 96.43% grouped cases 1 year before bankruptcy. adjusted DA two three years same 92.86% 89.29% cases, respectively. Consequently, mix financial ratios achieved strong classification accuracy even bankruptcy, captivating an overall picture firm’s health providing powerful tool decision making investors risk managers banking section policy makers.