Business bankruptcy prediction: the multisectorial models’ efficiency in the Old Blue Economy Iberian companies’

Abstract

In the risk evaluation by the stakeholders it’s crucial to understand the causes of bankruptcy or breach in corporate sustainability, as well as more efficient ways of predicting it. These techniques, mainly supported by financial analysis, over time, have given rise to a diversity of approaches in particular to the Multivariate Discriminant Analysis. We selected, 54 iberian companies from that sector, divided them in two samples, one of the bankrupt companies and another of the healthy ones, matched by size and business' volume. Were applied 21 multisectoral models from a diversity of countries abd time horizons, with greater presence in the literature. As conclusions, continuing Peres and Antão (2019) the work, were identified the best bankruptcy or sustainability predictors, to the Old Blue Economy Iberian industries’, up to 5 years in advance.