Long-Term Bankruptcy Prediction. Systematic Literature Review

The optimal forecasting horizon of bankruptcy prediction models is usually one year as beyond this point their accuracy substantially decreases. This common opinion may however ceased to be valid as development of big data processing methods has created new research possibilities in many areas of social sciences. Our research aimed at outlining the ways scientists follow to increase long-term corporate bankruptcy prediction accuracy. We conducted systematic literature review following meta-narrative assumptions to synthesis and analysis of the information acquired from 15 selected papers. Our results indicate that there are few theoretical and methodological approaches scientists may use to actually find high accuracy of long-term bankruptcy prediction