IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v21y1993i2p215-228.html
   My bibliography  Save this article

Financial predictors for different phases of the failure process

Author

Listed:
  • Laitinen, Ek

Abstract

The purpose of the study is to find financial predictors for alternative phases of failure process. For this purpose the typical process is divided into starting, intervening and final phases. The hypotheses presuppose that the differences, trends and levels are significant predictors in these phases, respectively. The aim is to use a separate model to identify the beginning of each phase. This kind of warning system makes it possible to identify the phase in which the firm possibly lives and to assess its risk to fail already years before failure. The main statistical method is regression analysis since both survival status and survival time are used as the dependent variable. The hypotheses were supported by empirical evidence.

Suggested Citation

  • Laitinen, Ek, 1993. "Financial predictors for different phases of the failure process," Omega, Elsevier, vol. 21(2), pages 215-228, March.
    • Handle: RePEc:eee:jomega:v:21:y:1993:i:2:p:215-228
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0305-0483(93)90054-O
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. T H Moon & Y Kim & S Y Sohn, 2011. "Technology credit rating system for funding SMEs," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 608-615, April.
    2. 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.
    3. Tamás Kristóf & Miklós Virág, 2020. "A Comprehensive Review of Corporate Bankruptcy Prediction in Hungary," JRFM, MDPI, vol. 13(2), pages 1-20, February.
    4. Balcaen, Sofie & Ooghe, Hubert, 2006. "35 years of studies on business failure: an overview of the classic statistical methodologies and their related problems," The British Accounting Review, Elsevier, vol. 38(1), pages 63-93.
    5. S. Balcaen & J. Buyze & H. Ooghe, 2009. "Financial distress and firm exit: determinants of involuntary exits, voluntary liquidations and restructuring exits," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/598, Ghent University, Faculty of Economics and Business Administration.
    6. Ooghe, H. & De Prijcker, S., 2006. "Failure processes and causes of company bankruptcy: a typology," Vlerick Leuven Gent Management School Working Paper Series 2006-21, Vlerick Leuven Gent Management School.
    7. Mosqueda, Rubén, 2010. "Fallibility Of The Rough Set Method In The Formulation Of The Failure Prediction Index Model Of Dynamic Risk," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 15(28), pages 65-88.
    8. Erkki K. Laitinen & Oliver Lukason, 2014. "Do firm failure processes differ across countries: evidence from Finland and Estonia," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 15(5), pages 810-832, November.
    9. fernández, María t. Tascón & gutiérrez, Francisco J. Castaño, 2012. "Variables y Modelos Para La Identificación y Predicción Del Fracaso Empresarial: Revisión de La Investigación Empírica Reciente," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(1), pages 7-58.
    10. du Jardin, Philippe, 2015. "Bankruptcy prediction using terminal failure processes," European Journal of Operational Research, Elsevier, vol. 242(1), pages 286-303.
    11. Barniv, Ran & Mehrez, Abraham & Kline, Douglas M., 2000. "Confidence intervals for controlling the probability of bankruptcy," Omega, Elsevier, vol. 28(5), pages 555-565, October.
    12. Lukason, Oliver & Laitinen, Erkki K., 2019. "Firm failure processes and components of failure risk: An analysis of European bankrupt firms," Journal of Business Research, Elsevier, vol. 98(C), pages 380-390.
    13. Mário Santiago Céu & Raquel Medeiros Gaspar, 2022. "Vegetative cycle and bankruptcy predictors of agricultural firms," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(12), pages 445-454.
    14. Mashhour Hathloul Maharmah & Esraa Ali Khalil, 2015. "Models Ability to Predict Bankruptcy Before it Happens," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 4(7), pages 479-491.
    15. Onofrei, Mihaela & Lupu, Dan, 2014. "The modelling of forecasting the bankruptcy in Romania," MPRA Paper 95511, University Library of Munich, Germany.
    16. Moon, Tae Hee & Sohn, So Young, 2008. "Technology scoring model for reflecting evaluator's perception within confidence limits," European Journal of Operational Research, Elsevier, vol. 184(3), pages 981-989, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:21:y:1993:i:2:p:215-228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.