Financial failure estimation in technology companies operating in Borsa İstanbul with logistics regression model

Not every company that faces financial failure ends up in bankruptcy. However, it is obvious that the economic crisis, which has an impact on the global level, has led to the liquidation and bankruptcy of a large number of companies. There is no consensus and clear definition of the concept of financial failure. This, in turn, causes research on predicting financial failure to be associated with bankruptcies. Financial failure has been seen as the most critical threat to companies, investors and lenders for many years. With the impact of globalization in recent years, as well as the reflection of technological advances and financial conditions, it is seen that national and international sectors are rapidly differentiating and progressing. This difference and progress brings to the forefront the prediction of financial failures, mostly for companies. In this study, the concept of financial failure, types of financial failure, measures that can be taken to prevent financial failure, methods used to predict financial failure, financial technology, financial technology process, financial technology players and Borsa Istanbul concepts are explained conceptually. In the study, it is aimed to predict the failures of companies with financial data using logistic regression method. Ratios were created by collecting data from 27 technology companies traded in Borsa Istanbul. Unsuccessful companies were identified with 2021 data and financial data for the last three years. The data of the companies were primarily created according to 3-month periods, but as only the annual data of some companies for the years 2018 and 2019 could be accessed, it was decided to use annual data. The ratios determined for the years 2018, 2019 and 2020 were used as independent variables. When the ratios with missing data were removed, analysis was performed with 60 different ratios. Fixed Assets/Tangible Equity, Net Debt/EBITDA(Annual) and Total Debt/Equity ratios in predicting the financial failure of companies 3 years in advance, EBITDA/Growth (Annual) and Short Term Debt/Total Debt ratios in predicting 2 years in advance and 1 year in advance, Return on Equity/ROE and Short Term Debt/Growth ratios were found to be successful.