Developing of a bankruptcy prediction model for the uk construction companies

Abstract

The paper provides a comparative analysis and classification of existing methods of diagnosing and forecasting the financial condition of companies. Furthermore, the features of carrying out multiple discriminant analysis (MDA) were discussed in details. Besides, the relevance of Altman’s and Taffler’s models was proved by testing these models using the financial data of current construction companies. Finally, a new model of diagnostic the financial condition of British construction companies based on MDA has been developed.