The recent bankruptcy of international corporations and changes in the stock exchanges in Iran lead to wasting the resources and investment of suitable opportunities. It indicates that corporations need instruments to evaluate financial ability. The use of financial ratios is one of the suitable instruments in these cases. The researchers have presented the models for the prediction of corporate bankruptcy by using financial ratios. The purpose of this research is to help investors make better investing decisions in companies which have favorable financial position and non- bankrupt. Furthermore, the research provides required evidences for evaluating the usefulness and predicting bankruptcy of financial models. So the presented research hypotheses are: Hypothesis 1: Folmer and Zmijewski models are suitable instruments for predicting of bankruptcy. Hypothesis 2: There is a significant difference between the results of Folmer and Zmijewski models in the prediction of corporate bankruptcy the results of testing the hypotheses show that, both of models have the ability to divide corporations into two groups, of bankrupt and non-bankrupt. But there is no significant difference between the results of these two models in Prediction of corporate bankruptcy.
Moghaddam, A. and Taghi Mollayi, M. (2015). Review of Flamer and Zimsky’s Financial Models in Bankruptcy Predicting of Companies. New Researches on Accounting, 1(1), 11-25.
MLA
Moghaddam, A. , and Taghi Mollayi, M. . "Review of Flamer and Zimsky’s Financial Models in Bankruptcy Predicting of Companies", New Researches on Accounting, 1, 1, 2015, 11-25.
HARVARD
Moghaddam, A., Taghi Mollayi, M. (2015). 'Review of Flamer and Zimsky’s Financial Models in Bankruptcy Predicting of Companies', New Researches on Accounting, 1(1), pp. 11-25.
CHICAGO
A. Moghaddam and M. Taghi Mollayi, "Review of Flamer and Zimsky’s Financial Models in Bankruptcy Predicting of Companies," New Researches on Accounting, 1 1 (2015): 11-25,
VANCOUVER
Moghaddam, A., Taghi Mollayi, M. Review of Flamer and Zimsky’s Financial Models in Bankruptcy Predicting of Companies. New Researches on Accounting, 2015; 1(1): 11-25.