COVID-19 and firms' financial health in Brescia: a simulation with Logistic regression and neural networks

Abstract

COVID-19 has generated an unprecedented shock to the global economy causing both the decrease in demand and supply. The purpose of this paper is to simulate the effect of COVID-19 on firms' financial statements in Brescia. The shocked information is then fed into two bankruptcy models with the aim of providing an up-to-date picture of firms' economic health in one of the most prosperous industrial areas in Italy and Europe.

Keywords

• covid-19
• financial statements
• logistic regression
• neural networks
• brescia