Assessing the usefulness of accounting information as an instrument to predict business failure in Spanish cooperatives
AbstractAccounting information has been employed in many economic-financial models applied to registered corporations to predict business failure. Nonetheless, there are practically no research works that predict failure in agricultural cooperatives. The fundamental elements of this legal form justify the development of specific prediction models. The Delphi methodology has been used to define agricultural cooperative failure and to assess the usefulness of accounting variables. The conclusions suggest considering those agricultural cooperatives with negative equity or cash-flow problems to be failures or to come close to this concept. Similarly, indebtedness volume, cash flow and solvency are the most relevant variables that can act as business prediction instruments.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 128561.
Date of creation: 2012
Date of revision:
Agricultural cooperatives; business failure; Delphi method; accounting variables; Agribusiness; Farm Management; Risk and Uncertainty; Q13; M41; M15; G33;
Find related papers by JEL classification:
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
- M15 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - IT Management
- G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
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- Scott, James, 1981. "The probability of bankruptcy: A comparison of empirical predictions and theoretical models," Journal of Banking & Finance, Elsevier, vol. 5(3), pages 317-344, September.
- Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, 09.
- Dambolena, Ismael G & Khoury, Sarkis J, 1980. " Ratio Stability and Corporate Failure," Journal of Finance, American Finance Association, vol. 35(4), pages 1017-26, September.
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