Identifying and Prioritizing the Factors Affecting the Bankruptcy of Iranian Firms

This paper aimed to identifying and prioritizing the factors causing bankruptcy in Iranian firms. The sample included 191 judges, attorneys-at-law, and licensed justice ministry professionals in accounting and auditing selected using random sampling. The questionnaire used in this research was finalized using the Delphi method and using 15 professors in the subject. One-sample t-test, regression test and hierarchical analysis were used to test the research hypotheses The results showed that five factors of managrial errors, criminal acts, environmental crises, accounting errors, and the accident factor are major causes of bankruptcy in Iranian firms, with managerial errors being the most important priority. Therefore, using modern management techniques at different levels of a firm will be useful in preventing managerial errors in decision making and rescue firms from bankruptcy.