ECONOMICS OF ENGINEERING DECISIONS Research of Possibility of Bankruptcy Diagnostics Applyi.pdfVIP

ISSN 1392-2785 ENGINEERING ECONOMICS. 2005. No 1 (41) ECONOMICS OF ENGINEERING DECISIONS Research of Possibility of Bankruptcy Diagnostics Applying Neural Network Ojaras Purvinis, Povilas Šukys, Rūta Virbickaitė Kauno technologijos universitetas Panevėžio institutas Klaipėdos g. 1, LT –35209, Panevėžys This paper analyses the possibilities of prediction of the neural network prognosis. The research is being the enterprise bankruptcy, applying neural network. The continued. prediction results of the failed enterprises are co mpared Keywords: bankruptcy diagnosis, financial indicators of to the prediction results of the profitable enterprises. In enterprise, neural networks. this way we can see the peculiarities and reliability of neural network usage for the bankruptcy diagnosis. Preface Lithuanian enterprises work in different conditions than other foreign enterprises, but all introduced mod- Unfavourable business environment, unexpected els were based only on foreign enterprises, so their ap- and unfavourable events, the risky decisions of enter- plicability for the diagnostics of bankruptcy remai ns prise managers for short or for long periods may make disputable. Estimations of enterprises for the bank- enterprise insolvent and lead it towards bankruptcy. The ruptcy in definite time, calculated from “Z” scores of number of insolvent enterprises has been rising in resent different authors, are different so t