Access the full text.
Sign up today, get DeepDyve free for 14 days.
Altman Altman, Marco Marco, Varetto Varetto (1994)
“Corporate Distress Analysis Using Linear Discriminant Analysis and Neural Networks (The Italian Experience)”Journal of Banking and Finance, 18
Bidin Bidin (1988)
“The Development of a Predictive Model (PNB Score) for Evaluating Performance of Companies Owned by the Government of Malaysia”Studies in Banking and Finance, 7
E. Altman (1968)
FINANCIAL RATIOS, DISCRIMINANT ANALYSIS AND THE PREDICTION OF CORPORATE BANKRUPTCYJournal of Finance, 23
Sang Lee, Seunghack Oh (1990)
A comparative study of recursive partitioning algorithm and analog concept learning systemExpert Systems With Applications, 1
Mai Iskandar-Datta, D. Emery (1994)
An empirical investigation of the role of indenture provisions in determining bond ratingsJournal of Banking and Finance, 18
This study is an attempt to construct and test a distress classification model for Korean companies. Utilizing a sample of 34 distressed firms from the recent 1990‐1993 period and a matched (by industry and year) sample of non‐failed firms, we observe the classification accuracy of two models. Both models utilize measures of firm size, asset turnover, solvency and leverage with one model available for testing only on publicly traded companies and one model applicable to all public and private entities. We observe excellent classification accuracy based on data from the first two years prior to distress. And, although the accuracy drops off after t‐2, the models still provide effective early warnings of distress in many cases. The results of this study are of particular relevance in the current financial market scenario of increased deregulation and greater individual financial institution decision making. It is somewhat ironic for us to be proposing the use of a financial distress early‐warning model given the current robust economic growth and low bankruptcy rate in Korea. But, the financial problems in Japan are a sobering reminder that high growth can be followed by financial excesses, increased business failures and large loan losses.
Journal of International Financial Management & Accounting – Wiley
Published: Dec 1, 1995
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.