Providing A Model For Determining The Probability of Financial Crisis in The Company

The aim of this paper is to provide a model for determining the possibility of financial crisis of a company. The model may help the user to investigate the company financial crisis and its going concern to make logical economic decisions. Target sample includes two groups of companies: 30 companies which are involved in financial crisis and 60 companies which are not involved in financial crisis. A number of important financial warning variables were compared between the two groups and variables that had a statistically significant difference were selected to fit a model to calculate the probability of financial crisis. Then, using the logit method, a model was fitted that has the ability to predict the crisis to 96 percent.