IDEAS home Printed from https://ideas.repec.org/a/and/journl/v5y2005i2p13-28.html
   My bibliography  Save this article

Determining Of Financial Failures With Multivariate Statistical Methods

Author

Listed:
  • Dilek Altas
  • Selay Giray

    () (Marmara University)

Abstract

Main aim of this study is to develop a model finding out the firms being financial failures. As a financial failure, we consider the period with loss for firm. The textile sector which has the greatest portion of total export in the recent years has been known the key sector of Turkey. There have been important investments for the sector in the processes of customs union. On the other hand, the sector has fragile structure for the economic crises. The data used in the study belongs to the companies operated in the textile sector and the member of Istanbul Stock Exchange (ISE). First of all, the financial ratios are found by considering the balance sheet of the year 2001 and the companies are evaluated as a financially successful or not according to their balance sheet. In order to develop the model of firm risk of the textile sector and to determine which variables statistically significant or not, first of all, factor analysis technique has been applied to the financial ratios, then logistic regression technique has been run by considering factor scores as independent variables. According to results obtained regressions, we determine the determinants of financial failure and the results are interpreted finally concluded.

Suggested Citation

  • Dilek Altas & Selay Giray, 2005. "Determining Of Financial Failures With Multivariate Statistical Methods," Anadolu University Journal of Social Sciences, Anadolu University, vol. 5(2), pages 13-28, December.
  • Handle: RePEc:and:journl:v:5:y:2005:i:2:p:13-28
    as

    Download full text from publisher

    File URL: http://www.anadolu.edu.tr/arastirma/hakemli_dergiler/sosyal_bilimler/pdf/2005-2/sos_bil.2.pdf
    Download Restriction: no

    More about this item

    Keywords

    Financial Failure; Logistic Regression; Textile Sector;

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

    Statistics

    Access and download statistics

    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:and:journl:v:5:y:2005:i:2:p:13-28. 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: (Social Sciences Institute). General contact details of provider: http://edirc.repec.org/data/iianatr.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.