Prediction Techniques of Agriculture Enterprises Failure

AbstractEarly diagnosis of potential corporate failure is very important due to the uncertainty of the current business environment and global competition. The main purpose of this paper is to make comparison of the prediction abilities among different techniques to become the best prediction model, which will classify the agricultural enterprises to prosperous and unprosperous. This paper examines three classification techniques, namely discriminant analysis, logistic regression and decision trees. It is implemented by using financial data for Slovak enterprises from the agriculture sector. The selection of appropriate economic and financial ratios is based on the relevant literature and refers to the key ratios of bankruptcy models specified for agriculture enterprises. The article also offers several potential areas for the further analysis