Predicting corporate failure-- Some results for the UK corporate sector
Abstract
A large number of authors have developed statistical models, which are based solely on conventional financial ratios constructed from published accounting data, with the aim of predicting corporate failure as evidenced by the event of 'bankruptcy'. The purpose of this paper is to report some empirical results for a study of the UK corporate sector in which corporate failure is predicted employing a statistical model which incorporates both conventional accounting ratios and a number of new variables which are not derived from profit and loss accounts and balance sheet items, but which are computed from annual company reports and accounts. The empirical results suggesting that our new variables enhance the predictive power of models which employ conventional financial ratios only.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Omega.
Volume (Year): 14 (1986)
Issue (Month): 1 ()
Pages: 5-12
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Hunter, John & Isachenkova, Natalia, 2006.
"Aggregate economy risk and company failure: An examination of UK quoted firms in the early 1990s,"
Journal of Policy Modeling,
Elsevier, vol. 28(8), pages 911-919, November.
- John Hunter & Natalia Isachenkova, 2004. "Aggregate Economy Risk And Company Failure:An Examination Of Uk Quoted Firms In The Early 1990s," Money Macro and Finance (MMF) Research Group Conference 2004 74, Money Macro and Finance Research Group.
- John Hunter, 2003. "AGGREGATE ECONOMY RISK AND COMPANY FAILURE:AN EXAMINATION OF UK QUOTED FIRMS IN THE EARLY 1990s," Economics and Finance Discussion Papers 03-09, Economics and Finance Section, School of Social Sciences, Brunel University.
- John Hunter, 2003. "AGGREGATE ECONOMY RISK AND COMPANY FAILURE:AN EXAMINATION OF UK QUOTED FIRMS IN THE EARLY 1990s," Public Policy Discussion Papers 03-09, Economics and Finance Section, School of Social Sciences, Brunel University.
- JOHN HUNTER & Natalia Isachenkova, 2003.
"A Panel Analysis Of Uk Industrial Company Failure,"
Economics and Finance Discussion Papers
03-10, Economics and Finance Section, School of Social Sciences, Brunel University.
- JOHN HUNTER & Natalia Isachenkova, 2003. "A Panel Analysis Of Uk Industrial Company Failure," Public Policy Discussion Papers 03-10, Economics and Finance Section, School of Social Sciences, Brunel University.
- Natalia Isachenkova & John Hunter, 2002. "A Panel Analysis Of UK Industrial Company Failure," ESRC Centre for Business Research - Working Papers wp228, ESRC Centre for Business Research.
- John hunter & Zacharias Psaradakis & Martin Sola, 2003.
"AGGREGATE ECONOMY RISK AND COMPANY FAILURE:AN EXAMINATION OF UK QUOTED FIRMS IN THE EARLY 1990s,"
Public Policy Discussion Papers
03-16, Economics and Finance Section, School of Social Sciences, Brunel University.
- John hunter & Zacharias Psaradakis & Martin Sola, 2003. "AGGREGATE ECONOMY RISK AND COMPANY FAILURE:AN EXAMINATION OF UK QUOTED FIRMS IN THE EARLY 1990s," Economics and Finance Discussion Papers 03-16, Economics and Finance Section, School of Social Sciences, Brunel University.
- Dimitras, A. I. & Zanakis, S. H. & Zopounidis, C., 1996. "A survey of business failures with an emphasis on prediction methods and industrial applications," European Journal of Operational Research, Elsevier, vol. 90(3), pages 487-513, May.
- John Hunter & Natalia Isachenkova, 2006. "Aggregate Economy Risk And Company Failure: An Examination Of Uk Quoted Firms," Economics and Finance Discussion Papers 06-12, Economics and Finance Section, School of Social Sciences, Brunel University.
- Teija Laitinen & Maria Kankaanpaa, 1999. "Comparative analysis of failure prediction methods: the Finnish case," European Accounting Review, Taylor and Francis Journals, vol. 8(1), pages 67-92.
- Constantin Zopounidis, Michael Doumpos, Fotios Pasiouras, 2007. "Multicriteria Framework for the Prediction of Corporate Failure in the UK," Frontiers in Finance and Economics, SKEMA Business School, vol. 4(1), pages 65-90, June.
- Andreas Charitou & Evi Neophytou & Chris Charalambous, 2004. "Predicting corporate failure: empirical evidence for the UK," European Accounting Review, Taylor and Francis Journals, vol. 13(3), pages 465-497.
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