IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v16y1988i4p309-318.html
   My bibliography  Save this article

A multilogit approach to predicting corporate failure--Some evidence for the UK corporate sector

Author

Listed:
  • Peel, M. J.
  • Peel, D. A.

Abstract

In this paper we demonstrate, using conventional logit analysis, how a number of non-financial variables, and more particularly the time lag in publishing annual accounts, can discriminate between failing and non-failing quoted firms up to three years before failure. We then, in a novel way, demonstrate how this information can be combined in a multilogit model. Previous models which have incorporated data sets one or more years prior to failure have only addressed the problem of whether a company will fail and not when it will fail. The new approach adopted here is concerned not only with predicting whether a company will fail, but with simultaneously predicting when it will fail, based on data up to three accounting periods before failure. This approach, if successful, would provide users with a much more informative analytical tool than that reported in previous failure prediction studies.

Suggested Citation

  • Peel, M. J. & Peel, D. A., 1988. "A multilogit approach to predicting corporate failure--Some evidence for the UK corporate sector," Omega, Elsevier, vol. 16(4), pages 309-318.
  • Handle: RePEc:eee:jomega:v:16:y:1988:i:4:p:309-318
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0305-0483(88)90067-9
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paweł Zając & Piotr Gurgul, 2012. "Forecasting of migration matrices in business demography," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 13(2), pages 387-404, June.
    2. Nadine Levratto & Luc Tessier & Messaoud Zouikri, 2011. "Small, alone and poor: a merciless portrait of insolvent French firms, 2007-2010," EconomiX Working Papers 2011-36, University of Paris Nanterre, EconomiX.
    3. repec:gam:jrisks:v:7:y:2019:i:3:p:77-:d:246370 is not listed on IDEAS
    4. Andreas Charitou & Evi Neophytou & Chris Charalambous, 2004. "Predicting corporate failure: empirical evidence for the UK," European Accounting Review, Taylor & Francis Journals, vol. 13(3), pages 465-497.
    5. Nadine Levratto & Luc Tessier & Messaoud Zouikri, 2012. "Small, alone and poor: a merciless portrait of insolvent French firms, 2007-2010," Erudite Working Paper 2012-05, Erudite.

    More about this item

    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:eee:jomega:v:16:y:1988:i:4:p:309-318. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    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.