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Bankruptcy prediction for private firms in developing economies: a scoping review and guidance for future research

Author

Listed:
  • Frank Ranganai Matenda

    (University of KwaZulu-Natal)

  • Mabutho Sibanda

    (University of KwaZulu-Natal)

  • Eriyoti Chikodza

    (Great Zimbabwe University)

  • Victor Gumbo

    (University of Botswana)

Abstract

The majority of studies on corporate bankruptcy detection are devoted to publicly-traded firms in advanced economies. Literature on bankruptcy prediction for private corporations is generally restricted and that for such corporates in undeveloped markets is even more limited. Existent evidence on privately-owned corporate bankruptcy forecasting is substantially dedicated to advanced countries. Implementing a scoping review structure of Arksey and O’Malley (Int J Law Manag 57:461–485, 2005), this paper carries out a review of literature concerning bankruptcy forecasting for privately-held firms in undeveloped economies. The main emphasis of the scoping review is to examine the reasons and motives for research, emerging trends and research gaps in modelling bankruptcy risk for private corporations in developing countries. The results of this scoping review show that the estimation of bankruptcy probability for privately-traded corporations in developing economies is a relevant discipline that has not been appropriately examined and has some unique and unexplored areas due to its sophistication and distinctive business ethos of private corporates.

Suggested Citation

  • Frank Ranganai Matenda & Mabutho Sibanda & Eriyoti Chikodza & Victor Gumbo, 2022. "Bankruptcy prediction for private firms in developing economies: a scoping review and guidance for future research," Management Review Quarterly, Springer, vol. 72(4), pages 927-966, December.
    • Handle: RePEc:spr:manrev:v:72:y:2022:i:4:d:10.1007_s11301-021-00216-x
    DOI: 10.1007/s11301-021-00216-x
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    More about this item

    Keywords

    Corporate bankruptcy prediction; Private firms; Predictor variables; Developing economies; Scoping review; Arksey and O’Malley (2005) framework;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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