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Exploring Corporate Bankruptcy in Belgian Private Firms

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  • Loredana Cultrera
  • Bauweraerts Jonathan

Abstract

The main purpose of this paper is to identify the financial antecedents of corporate bankruptcy by employing a robust variable selection procedure. Based on a sample of 1,338 Belgian private firms, a backward stepwise logistic regression technique is employed. The findings indicate that the likelihood of corporate bankruptcy is higher at lower levels of solvency, liquidity and profitability. Furthermore, our results reveal that corporate bankruptcy is more likely in older and larger firms.

Suggested Citation

  • Loredana Cultrera & Bauweraerts Jonathan, 2017. "Exploring Corporate Bankruptcy in Belgian Private Firms," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(3), pages 108-114, March.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:3:p:108-114
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    References listed on IDEAS

    as
    1. Agarwal, Vineet & Taffler, Richard, 2008. "Comparing the performance of market-based and accounting-based bankruptcy prediction models," Journal of Banking & Finance, Elsevier, vol. 32(8), pages 1541-1551, August.
    2. Grice, John Stephen & Ingram, Robert W., 2001. "Tests of the generalizability of Altman's bankruptcy prediction model," Journal of Business Research, Elsevier, vol. 54(1), pages 53-61, October.
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    Cited by:

    1. Marianna Succurro, 2017. "Financial Bankruptcy across European Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(7), pages 132-146, July.

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    More about this item

    Keywords

    corporate bankruptcy; variable selection; financial distress; private firms;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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