Abstract
Scientific literature aiming to explain and predict bankruptcy has been dominated, besides classical discriminant analysis, by symmetric binary choice models, also known as conditional probability models. The main research question that is addressed in this study is whether asymmetric binary choice models, based on extreme value theory, can explain bankruptcy better. The answer to this question is limited to the following testing context: corporate bankruptcy risk in the period of financial and economic turmoil, 2008-2012, is estimated starting from simple financial ratios available in Romania for the year 2007.
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