Abstract
This article deals with firms' defaults and empirically tests its key macroeconomic determinants. The conducted empirical analysis employs quarterly time series of the number of insolvency petitions filed in the period 1996-2009.
The obtained results point out prediction ability of the growth rate of real consumption and investment, change in the growth rate of real foreign demand, interest rates, change in the growth rate of the nominal exchange rate and change in the growth rate of real wages on firms' defaults development. The study confirms a strong link between firms' bankruptcy rates and the macroeconomic development in the Czech economy.