THE METHODS OF EARLY WARNING AGAINST THE POSSIBILITY
       OF BANKRUPTCY – VERIFICATION OF THE MODELS

                    Wioletta Skibińska, PhD Ing., wskibinska@eranet.pl
              Technical University of Czestochowa, Department of Management


        Abstract: The article contains an evaluation of the quality and universal character of
three models of prognosticating insolvency, constructed on the basis of discrimination analysis
and artificial neural networks. The evaluation of the created models was conducted on the basis
of four companies operating in different lines of business, which declared bankruptcy in the years
2002-2003. The objective of the verification was to find out, how many years in advance it was
possible to predict insolvency with the help of the models in question, and whether the line of
business in which a given company operated might influence the efficiency of the said models.

Key words: insolvency, artificial neural networks, financial indicators
JEL code: M19