ABSTRACT
ABSTRACT: This paper seeks to examine the importance of financial indicators in the financial health of companies and how we to use these relevant attributes to predict financial crashes, such indicators are of the utmost importance since financial risks have significantly increased in the context of the current global financial crisis. Given that a company forms a micro financial system, its good financial health contributes to building a powerful economic engine; therefore, we have selected a sample of 20 firms over 3 years (2009-2011), and we have extracted about forty indicators that impact on the firms’ financial health, in order to set up our Factor Analysis Model through which we can predict firms’ creditworthiness and default risk.
