**Preface to "Corporate Bankruptcy Prediction— International Trends and Local Experience"**

In 2018, the 50-year anniversary of the publication of the landmark article by prof. Edward Altman was marked. Its main goal was to apply a multidimensional discriminant analysis to forecast corporate bankruptcy. Many years have passed since its publication and forecasting corporate bankruptcy is still an important issue in the area of corporate finances. With the development of new statistical methods and IT tools, bankruptcy prediction has become more effective. However, scientists continue looking for more sophisticated solutions.

In the 1970s, logit and probit methods became popular. Then, in the 1990s, artificial neural networks and genetic algorithms began to be used. In the 21st century, along with the development of information technology, a variety of techniques used for forecasting bankruptcy were developed. The main emphasis is focused on support vector machines, fuzzy logic, random forests and multiple-model approaches. The publications contained in the following book illustrate research in which the authors developed bankruptcy prediction models for different countries using traditional as well as advanced methods.

Another important area of bankruptcy forecasting is the selection of explanatory variables and the development of more dynamic models. These concepts were raised in the study of Oliver Lukasson, Art Andersson, and Tomasz Korol. Sebastian Tomczak and Piotr Staszkeiwicz raised issues concerning the lack of universality of models designed for a given country. The difficulties regarding the effectiveness of models in various phases concerned the business cycle. The models developed for economic prosperity are not always effective in periods of recession, and vice versa. An important article regarding the reliability of financial statements and audits was also included in the research. Bankruptcy prediction models are most often developed using financial data and indicators. When such data are distorted, incorrect results of the company's financial condition forecast are automatically obtained.

I hope that this book will inspire you to conduct new research in the field of forecasting the risk of bankruptcy.

> **Błazej Prusak ˙** *Special Issue Editor*
