Prediction of Bankruptcy Using Financial Ratios in the Greek Market

This study explores the forecasting ability of bankruptcy prediction models for firms listed on the Athens Stock Exchange. The models have been tested whether they are able to predict bankruptcy one, two and three years prior bankruptcy. The highest bankruptcy predictive accuracy is achieved by the Taffler’s and Grammatikos and Gloubos’ Y models. Early and accurate sign of bankruptcy helps businesses take necessary actions to solve financial distress; hence the Greek bankruptcy prediction models will help companies minimize risk.