Bankruptcy Predicting of Firms, Using Artificial Neural Network (the Case Study in the Province of Kerman)

One of the main important issues in financial management is choosing the best way for utilizing investment. Investors like to invest their capitals in a way to minimize its risks. Bankruptcy is one of the risk factors which affect the decision making for investment. Predicting bankruptcy can helps investors to reduce the risks in capital markets and to recognize the best opportunities for their capitals. To do this, the Artificial Neural Network technique can be used for bankruptcy of firms in the future. In this study, this method is applied for the firms in the Province of Kerman, Iran. The result shows that none of the firms will bankrupt in the year 2008.