2018 Volume 3 Issue 2 Supplementary
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THE EFFECT OF FINANCIAL RATIOS ON THE BANKRUPTCY PREDICTION OF LISTED COMPANIES ON THE TEHRAN STOCK EXCHANGE


Naghmeh LOTFMOHAMMADI, Mahmoud MOEINADIN*, Nasim SHAHMORADI
Abstract

The present research aimed to investigate effects of financial ratios on the bankruptcy prediction of listed companies on the stock exchange. The statistical population consisted of all listed companies on the Tehran Stock Exchange from the beginning of 2006 to the end of 2016. The research sample consisted of 80 companies in six industries and they were selected using the systematic elimination method. The present research used 15 financial ratios and the Article 141 of the Commercial Code to review the corporate financial crisis. Hypothesis test was done using the correlation method between variables and multivariate regression equations through the logistic model. Research results indicated effects of financial ratios on the bankruptcy prediction.



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