Predicting Corporate Bankruptcies in Poland and Lithuania – Comparative Analysis

Abstract

The research on predicting bankruptcies of enterprises constitutes one of the most important areas of financial management. In developed countries, the first publications on the subject appeared in the early twentieth century. The situation is different in the countries of Eastern Europe, which introduced the market system already at the beginning of the 1990s, which resulted in first corporate bankruptcies. The article compares the experiences in the field of forecasting corporate bankruptcies in two countries of Eastern Europe, i.e. Poland and Lithuania, confronting them with the results of research conducted in developed countries. In the conclusions the similarities and differences between the two countries were shown and the future directions of research on this issue were proposed.