The Method and Modeling of Prediction of Corporate Bankruptcy

In the recent years,the bankruptcies of some famous corporates like Enron and Worldcom have underlined the importance of the prediction of corporate bankruptcy in academia and in industry.Therefore, this paper reviews the development history of bankruptcy prediction models,introduces the principle and method of modeling of two bankruptcy prediction models that often are used widely in the world,analyzes the advantage and disadvantage of them,finally sums up the latest development of research of corporate bankruptcy prediction.