ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 595 SEPTEMBER 2011 VOL 3, NO 5 Corporate financial distress prediction using artificial neural networks and Using micro-level financial indicators Mohammad Hasn Gholizadeh 14 Mohsen Mohammad Nourbakhsh Langroudi 15 Ali Bahmani 16 Behnam Shadi Dizaji 17 Abstract: many companies are going in financial distress In today's complex economic environment; Predict the probability of bankruptcy will help them to decide of appropriate internal and external stakeholders organizations. The main goal of this research has been to predict corporate financial distress Using artificial neural networks and internal factors affecting on company, Using financial micro variables. The study population was consisted of 444 companies listed in Tehran Stock Exchange for the years 1386-1384 and The sample includes 144 company. MATLAB software to verify the hypothesis of the study and Neural Network Toolbox and using it in the code, is a neural network design and analysis. The results of this study indicate that the The use of micro-economics can play an important role to play in financial distress or further fractures. Keywords: financial distress, neural networks, financial indice Introduction Growth and development of technology and management decisions are difficult, especially after the 1950 And institutions seeking to increase trade, economic relations and trade are significantly more complex; Economic policies of governments in the developed countries, this complexity is added. In such circumstances the role of financial management in the strategic goals of the organization is excellent. In such an environment, many companies are in financial distress; The predicted probability of bankruptcy and its external stakeholders in decision-making, The company's customers to banks and credit institutions in takes place, has a significant impact And other stakeholders from the local managers of the company, but they are Also predicted that the crisis can take decisions as appropriate to deal with it. What was described as being of strategic financial decisions, Financial managers tend to use modern methods of analysis and forecasts are And the purpose of computers and sophisticated mathematical models are used to advance their goals. The most advanced models, "Artificial Neural Networks" that benchmarking and simulation of natural human neural networks are designed. Artificial neural network model, mathematical aspects of the process of biological neural networks represent the body. This model uses the computational speed of computers, complex relationships between the variables analyzed and then used to predict future values 14 -Assistant professor ,Department of management, Rasht Branch, quilan University, Rasht, iran 15 - Financial Assistance and Support of Regional Power , Part-time faculty of Islamic Azad University , Rasht Branch,iran 16 - Budget experts and Gilan Regional Electricity MA student - Finance, Islamic Azad University of Rasht 17 -Masters, Department of Business Management, ajabshir Branch, peyamnour University, ajabshir, Iran