Comparison of The Model Altman Z Score and Cash Flow-based Model For Predicting Bankruptcy of Compainies Listed in tehran Stock Exchange

The objecte of the present study is to predict bankruptcy by using Altman Z score model and its compared performance through a model based on the ratio of cash flows. For this porpose, a range of financial ratios to model and Altman’s cash flow was used as the predictor variables of corporate financial distress. The results showed that the model introduced Altman relationship between the ratios of operating cash flow to sales is insignificant with bankruptcy. The findings also showed that the predictive power of the models are not significantly different, and cash flows in bankruptcy prediction model is considered insignificant