Modeling the Probability of Real Sector Companies` Bankruptcy

Bankruptcy prediction tends to be of high current interest. The researchers are mostly focused on the financial results of the companies or macroeconomic conditions. Both are confirming their hypotheses. However, the question of what has the greatest influence on the companies’ welfare remains open. That is why the purpose of this study is to determine which group of factors are in priority. This study evaluated the response of multiple logistic model on panel data, which were obtained from Bloomberg database and Federal Reserve Bank of St. Louise site. The estimation results are presented as odds ratios. To test the hypotheses, there has been developed a special technique. With the help of it we can compare the cumulative factors effect on the dependent variable. As a result, the priority influence of the company's internal factors on the probability of bankruptcy wasn't confirmed. Macroeconomic conditions have bigger influence on the stability of the real sector companies.