Explanation of the comprehensive pattern of bankruptcy

Subject Areas : Financial Markets and Institutions

Somayyeh Imani ¹ , Mohammad Javad Tasaddi Kari ²

1 - Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran.
2 - Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran.

Received: 2023-06-05 Accepted : 2023-09-30 Published : 2023-08-23

Keywords: bankruptcy, Reporting Unit, Whistle-Blowing,

Abstract :

Purpose: Since the economic cycle of any country depends on the continuity and survival of the reporting units of that country, this research aims to provide a comprehensive model to predict the bankruptcy of the reporting units with the aim of timely warning to prevent its occurrence.Methodology: The current research is qualitative. The data was analyzed and weighted by analyzing the content of the results of previous researches obtained through the Delphi-Fuzzy method. The statistical population of the present study also includes 17 university professors and financial managers of the reporting units, who were selected by the purposeful and theoretical sampling method and by the snowball technique.Results: The results show that among the four identified factors, the characteristics of the reporting units are the best criteria in determining the bankruptcy of the reporting units. Also, from the sub-factors of financial ratios, the ratio of net profit to sales; Among the characteristic sub-factors of the reporting units, the management system; Among the sub-factors of the environmental factor, the way of financing, and among the sub-factors of individual characteristics, the expertise of managers are considered as the best factors in determining the bankruptcy of the reporting units.Originality / Value: Considering the lack of convergence of the results of previous researches, in the current research, an attempt has been made to look for the convergence of the existing factors based on the cases identified in the field of bankruptcy, in order to identify the factors that have more weight in determining bankruptcy, with more comprehensiveness and the least amount of error in the results. Obtained more reliable. The results of this research can provide the basis for managers and investors to pay attention to the key factors affecting the occurrence of bankruptcy.

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