Selecting indicators of future corporate business development

Abstract

The paper presents applications of discriminate analysis to predicting corporate economy future developments. The discriminate analysis was applied employing 5 to 8 input indicators (discriminators). Attaining maximum accuracy, 7 discriminators suffice. A final choice of discriminators was made by further discriminate analysis applications, and by searching causes of erroneous classification, which concerned a closer examination of input data files.

Keywords

• economic development
• bankruptcy
• discriminate analysis