Abstract

Corporate governance has emerged as a critical determinant of organizational stability investor confidence and sustainable growth in modern corporate landscapes. Effective governance mechanisms encompassing board composition managerial accountability shareholder rights transparency and risk management play a pivotal role in preventing financial distress and predicting potential bankruptcy. The increasing incidence of corporate failures across both developed and developing economies has intensified the need for reliable bankruptcy forecasting models that integrate corporate governance variables alongside traditional financial indicators. This research paper investigates the intricate relationship between corporate governance structures and bankruptcy forecasting accuracy. The study examines how specific governance attributes—including board size independence audit committee efficacy ownership concentration and executive compensation policies—correlate with firm solvency and failure pred