A Comparative Study of Bankruptcy Prediction Models of Fulmer and Springate in accepted Companies in Tehran Stock Exchang

Recent bankruptcies of large companies in the world and fluctuations of stock prices in Iran, need tools for assessing financial strength of companies. In assessing financial strength we use financial ratios as well as different models for predicting bankruptcy. Environmental changes and ever-increasing competition, achieving the desired profit is limited. In this regard, this paper aims to investigate and compare results from application of Fulmer and Springate models. So data of samples from Tehran Stock Exchange companies were collected for years 2005-2010. In order to analyzing the research hypothesis we use statistical methods, non-parametric binomial models . Results of this reserach show that there is significant difference between the results of two models and Fulmer model is more conservative than Springate model.