Abstract

The Greek economy’s prolonged financial crisis, which began in 2010, has resulted in the corporate bankruptcy of many Greek companies and is one of the most important subjects of scientific research. In this study, we estimate a Logit model to predict the likelihood of Greek company bankruptcy using financial indices for the period 2011-2022. The sample includes 96 firms, with an equal number of healthy and bankrupt firms. The study concludes that predictors representing business profitability (profitability ratios: Cashflow/turnover and EBITDA Margin) and operational efficiency (Net asset turnover and Credit period) lead to the distinction between healthy and bankrupt companies by studying 21 financial indices.

Keywords:Corporate failure; Logit, Financial crisis; SMEs; Financial indices