The aim of this paper is to reveal the factors affecting bankruptcy risk. In the paper, the factors affecting capital structure is examined by testing 79 Turkish manufacturing firms traded on Borsa Istanbul, with 474 observations from 2010 to 2015. Using Modified Altman's Z-score as proxy for bankruptcy risk on panel data analysis, the significant relationships are found between independent variables and bankruptcy risk. Profitability, leverage, size, liquidity, growth, age, firm value, dividend payments, derivative usage dummy, and ownership structure are used as the firm's specific variables that affect financial distress. In addition, Ante Pulic's (1998) Value Added Intellectual Coefficient (VAIC) is employed as proxy for intellectual capital. According to results of the study, intellectual capital is positively related with Z-score.