Advanced Search
MyIDEAS: Login to save this article or follow this journal

Predicting the bankruptcy risk of Taiwanese OTC corporations


Author Info

  • Chia-Liang Lin
  • Kuan-Min Wang


Using non-probability purposive sampling, this study matched 23 Taiwanese OTC (Over-the-Counter) bankrupt corporations with 23 non-bankrupt corporations during the period 1999-2005. On the basis of the sample, a predictive and secondary research design was conducted to construct a rolling-prediction model and validate its prediction in Taiwan on OTC corporation bankruptcy risks. The empirical results indicated that the rolling-logit model, compared with the benchmark model, exhibited higher overall accuracy. The successful predictive performances were attributed to a recall mechanism in the rolling-logit model, measuring a corporation's risks on the basis of consistent information across time. However, this study had limitations due to the selection of the sample and variables. These limitations suggest that future research could validate its applicability in other markets or select other explanatory variables in order to improve the predictive ability.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

Volume (Year): 9 (2011)
Issue (Month): 3 ()
Pages: 301-316

as in new window
Handle: RePEc:taf:jocebs:v:9:y:2011:i:3:p:301-316

Contact details of provider:
Web page:

Order Information:

Related research

Keywords: bankruptcy; rolling-logit model; Taiwan OTC market; financial ratios; matched-pair method; recall mechanism;


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:taf:jocebs:v:9:y:2011:i:3:p:301-316. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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