—This paper studies, whether pre-bankruptcy
financial performance differs through firm types. Based on the
whole population data of Estonian bankrupt firms from the
period 2002-2009 and an extensive set of financial data changes
it is shown, that distinct differences in the pre-bankruptcy
financial performance exist. Namely, it is proven that for
different industries, size groups, bankruptcy years, insolvency
types and varying levels of control, the pre-bankruptcy changes
of financial variables and ratios are not the same.
—Bankruptcy, financial data, failure process.
O. Lukason is with the Tartu University, Faculty of Economics and
Business Administration, Narva road 4, Tartu 51009, Estonia (e-mail:
Cite:Oliver Lukason, "Financial Performance Before Failure: Do Different Firms Go Bankrupt Differently?," International Journal of Trade, Economics and Finance vol.3, no.4, pp. 305-310, 2012.