Section Article

The correlation between corporate governance and bankruptcy prediction
Author(s): J. D. Chhabra

Abstract
This research investigates the relationship between corporate governance systems and bankruptcy forecasting with the goal of understanding how governance processes influence the precision and dependability of bankruptcy forecasts. The study examines several governance models and their ability to detect financial crisis signals. It emphasises the importance of governance factors including board composition CEO salary and audit quality in predicting the likelihood of bankruptcy. The research uses a blend of quantitative models and case studies to evaluate how strong governance frameworks might improve prediction skills and reduce financial uncertainty. Research indicates that companies with more robust governance systems are more capable of anticipating and handling possible bankruptcy risks therefore enhancing the precision of forecasting models. This research enhances the current body of knowledge by providing valuable insights into how corporate governance plays a crucial role in improving the accuracy of bankruptcy forecasts. Additionally it presents suggestions for incorporating governance factors into forecasting approaches.