Comparing predicative power of foreign adjusted bankruptcy through providing proposed model of bankruptcy in Iran

Document Type : Research Paper

Authors

Department of Accounting, Sistan and Baluchestan University, Zahedan, Iran

Abstract

The aim of the present study was to compare the productive power of foreign adjusted bankruptcy by providing a proposed model of bankruptcy in Iran. This research is applied in terms of purpose and descriptive and correlational in terms of nature which through that bankruptcy models are studied according to the Shumway's hazard model (2001), and in the form of a logit model and accounting are evaluated based on Pourheydari's and Koopayee's model (2010). Accordingly, a sample including1287 years, the company from 2006 to 2018 has been selected from Tehran Stock Exchange. For statistical hypothesis testing, receiver operating characteristics (ROC) was applied. Receiver operating characteristics is applicable in software like SAS, SPSS, and STATA. The results showed that Shumway's model (2001) provides a more accurate bankruptcy prediction of companies and this is the sign of superiority of the hazard model over classic models.

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