SELECTION OF PREDICTORS IN BANKRUPTCY PREDICTION MODELS FOR SLOVAK COMPANIES

Creation of bankruptcy prediction models, created with various sets of predictors, is nowadays a topic, which much attention in many countries all around the world is dedicated to. Many efforts of the economists in many countries have been dedicated to creation of a model which is useful for failure prediction. In these prediction models different sets of predictors, mainly financial ratios of the company or some other predictors, are used for building a strongly predictive model. Previous works have shown that these models are then less effective in application in another country or in another time. In our paper we test a significance of several predictors in different regions of Slovak republic. Through statistical methods we found a set of predictors that are significant to predict bankruptcy of companies in various regions of Slovakia. Furthermore, we propose the clusters of Slovak regions, which are so similar in their characteristics that are appropriate to be analyzed together for predicting bankruptcy.