PREDICTIVE MODELING OF BUSINESS BANKRUPTCY USING FINANCIAL RATIOS AND MACROECONOMIC INDICATORS
Keywords:
Bankruptcy Prediction, Financial Ratios, Macroeconomic Indicators, Predictive Modeling, Corporate Failure, Risk Assessment, Machine Learning, Early Warning Systems, Financial Distress, Business AnalyticsAbstract
This thesis develops a predictive model for business bankruptcy by integrating financial ratios with macroeconomic indicators to improve early warning capabilities. Using historical data from distressed and healthy firms, the study applies statistical and machine learning techniques to identify key predictors of corporate failure. The combined approach enhances the accuracy of bankruptcy forecasting, offering valuable insights for investors, regulators, and financial institutions in managing risk and supporting proactive decision-making.
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