The paper discusses the methods of validating the bankruptcy models. The drawbacks of statistical-econometric models constructed for bankruptcy are presented along with the classification of testing/validation approaches. Simple validation is implemented by simulating the models' performance for non-bankrupt companies. Models taken into account are bankruptcy prediction models recently built for the companies operating in Poland. Models are applied to the data for the best companies listed on the Warsaw Stock Exchange. Newly constructed bankruptcy prediction models for Polish companies pass the validation test. Diverse validation approaches which may be applied in consequent research include out-of-sample testing of the models for the aggregate financial data for companies operating in Poland - as reported by the Central Statistical Office as well as the financial indicators data available most recently for industry aggregates in Poland.
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.