Importance The research focuses on issues of effective forecasting of corporate insolvency, factors of corporate governance and their influence on the bankruptcy probability. Objectives We investigate how the probability of corporate bankruptcy depends on corporate governance, illustrating evidence from the Russian companies and setting a model to forecast bankruptcy of the Russian entities in line with the factors. Methods The research employs two logistic models with various financial and non-financial indicators that project two degrees of bankruptcy, i.e. complete and incomplete. The empirical framework includes results of an analysis of financial statements prepared by 376 Russian companies, and coefficients of corporate governance level and macroeconomic indicators. Results The bankruptcy probability is influenced by nonfinancial aspects, general condition of the financial market and industries, other macroeconomic factors, rather than financial indicators only. Conclusions and Relevance They may have scientific and practical value since investors, banks and other stakeholders need to forecast the probability of financial insolvency and take an adequate decision respectively.
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