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Determining Of Financial Failures With Multivariate Statistical Methods

Author

Listed:
  • Dilek Altas
  • Selay Giray

    (Marmara University)

Abstract

Main aim of this study is to develop a model finding out the firms being financial failures. As a financial failure, we consider the period with loss for firm. The textile sector which has the greatest portion of total export in the recent years has been known the key sector of Turkey. There have been important investments for the sector in the processes of customs union. On the other hand, the sector has fragile structure for the economic crises. The data used in the study belongs to the companies operated in the textile sector and the member of Istanbul Stock Exchange (ISE). First of all, the financial ratios are found by considering the balance sheet of the year 2001 and the companies are evaluated as a financially successful or not according to their balance sheet. In order to develop the model of firm risk of the textile sector and to determine which variables statistically significant or not, first of all, factor analysis technique has been applied to the financial ratios, then logistic regression technique has been run by considering factor scores as independent variables. According to results obtained regressions, we determine the determinants of financial failure and the results are interpreted finally concluded.

Suggested Citation

  • Dilek Altas & Selay Giray, 2005. "Determining Of Financial Failures With Multivariate Statistical Methods," Anadolu University Journal of Social Sciences, Anadolu University, vol. 5(2), pages 13-28, December.
    • Handle: RePEc:and:journl:v:5:y:2005:i:2:p:13-28
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    File URL: http://www.anadolu.edu.tr/arastirma/hakemli_dergiler/sosyal_bilimler/pdf/2005-2/sos_bil.2.pdf
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    More about this item

    Keywords

    Financial Failure; Logistic Regression; Textile Sector;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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