A Comparative Assessment of Bankruptcy of the Companies Listed in Tehran Stock Exchange Based on DEA-Additive and DEA–DA

People always suffer from phenomena like uncertainty, risk, and lack of awareness and they are always trying to reduce their suffering. Increasing awareness can reduce risk and increase the possibility of prediction. Prediction based on information and knowledge is different from Prediction based on Suspicion and conjecture. One of the concepts that can show the importance of prediction is the concept of "bankruptcy" .Bankruptcy is a challenge that especially in this highly competitive era, many companies are faced with. Therefore the analysis and prediction of bankruptcy are vital necessities, especially for investors. Accordingly, the present study aims to introduce two techniques which are based on the Data Envelopment Analysis (DEA) in order to be used in the analysis and prediction of bankruptcy of the companies listed on Tehran Stock Exchange. The study is descriptive- applicable and to assess the models of bankruptcy analysis, 100 companies listed on the stock exchange have been considered as statistical population. The DEA-Additive model and DEA-DA model are used to bankruptcy analysis. The study finding showed that the DEA-DA model was 94% accurate in predicting the bankrupt companies and 80% accurate in predicting the successful companies while the DEA-Additive model was 70% accurate in predicting the bankrupt companies and 91% accurate in predicting the successful companies, so in total the DEA- DA model is more accurate than the DEA-Additive model, and it is preferred.