Dominika Gajdosikova

Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina,

Slovakia

dominika.gajdosikova@uniza.sk 

ORCID 0000-0001-7705-3264

Predicting bankruptcy and ensuring financial sustainability: A focus on Visegrad economies

Katarina Valaskova

Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina,

Slovakia

katarina.valaskova@uniza.sk

ORCID 0000-0003-4223-7519

Tomas Kliestik

Department of Economics, Faculty of Operation and Economics of Transport and Communications, University of Zilina,

Slovakia

tomas.kliestik@uniza.sk

ORCID 0000-0002-3815-5409

Abstract. Bankruptcy prediction lies in the need for financial institutions, investors, and stakeholders to assess the financial health and solvency of companies. Bankruptcy prediction models aim to forecast the likelihood of a business facing financial distress or going bankrupt in the future. The main aim of the paper is to build a bankruptcy prediction model utilizing financial information from 12,816 business entities in the Visegrad Group countries. Because multiple discriminant analysis provides important insights into corporate financial health, it is possible to develop individual prediction models for each Visegrad Group country as well as a comprehensive model for the entire group. Relevant debt ratios are crucial components of bankruptcy prediction models. The development of bankruptcy prediction models significantly enriches the theory and practice of corporate finance by offering valuable insights, improving decision-making processes, and enhancing risk management and it also provides insightful information on how different crises affect prediction models, especially when comparing the COVID-19 crisis model to previous models developed in a comparable way.

Received: November, 2024

1st Revision: August, 2025

Accepted: September, 2025

DOI: 10.14254/2071-8330.2025/18-3/7

JEL Classification: G01, G33, M21

Keywords: bankruptcy prediction, corporate performance, COVID-19, Visegrad countries