IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v90y1996i3p487-513.html
   My bibliography  Save this article

A survey of business failures with an emphasis on prediction methods and industrial applications

Author

Listed:
  • Dimitras, A. I.
  • Zanakis, S. H.
  • Zopounidis, C.

Abstract

No abstract is available for this item.

Suggested Citation

  • Dimitras, A. I. & Zanakis, S. H. & Zopounidis, C., 1996. "A survey of business failures with an emphasis on prediction methods and industrial applications," European Journal of Operational Research, Elsevier, vol. 90(3), pages 487-513, May.
  • Handle: RePEc:eee:ejores:v:90:y:1996:i:3:p:487-513
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/0377-2217(95)00070-4
    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.

    References listed on IDEAS

    as
    1. Zopounidis, C & Pouliezos, A & Yannacopoulos, D, 1992. "Designing a DSS for the Assessment of Company Performance and Viability," Computer Science in Economics & Management, Kluwer;Society for Computational Economics, vol. 5(1), pages 41-56, February.
    2. Charles L. Merwin, 1942. "Financing Small Corporations in Five Manufacturing Industries, 1926–36," NBER Books, National Bureau of Economic Research, Inc, number merw42-1.
    3. Izan, H. Y., 1984. "Corporate distress in Australia," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 303-320, June.
    4. 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.
    5. Houghton, Ka & Sengupta, R, 1984. "The Effect Of Prior Probability Disclosure And Information Set Construction On Bankers Ability To Predict Failure," Journal of Accounting Research, Wiley Blackwell, vol. 22(2), pages 768-775.
    6. Eisenbeis, Robert A., 1978. "Problems in applying discriminant analysis in credit scoring models," Journal of Banking & Finance, Elsevier, vol. 2(3), pages 205-219, October.
    7. Deakin, Eb, 1972. "Discriminant Analysis Of Predictors Of Business Failure," Journal of Accounting Research, Wiley Blackwell, vol. 10(1), pages 167-179.
    8. Mareschal, B. & Brans, J. P., 1991. "BANKADVISER: An industrial evaluation system," European Journal of Operational Research, Elsevier, vol. 54(3), pages 318-324, October.
    9. Marinus J. Bouwman, 1983. "Human Diagnostic Reasoning by Computer: An Illustration from Financial Analysis," Management Science, INFORMS, vol. 29(6), pages 653-672, June.
    10. Takahashi, Kichinosuke & Kurokawa, Yukiharu & Watase, Kazunori, 1984. "Corporate bankruptcy prediction in Japan," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 229-247, June.
    11. Jean-François Malécot, 1991. "Analyses théoriques des défaillances d'entreprises : Une revue de la littérature," Revue d'Économie Financière, Programme National Persée, vol. 19(4), pages 205-227.
    12. Peel, MJ & Peel, DA & Pope, PF, 1986. "Predicting corporate failure-- Some results for the UK corporate sector," Omega, Elsevier, vol. 14(1), pages 5-12.
    13. Chalos, P, 1985. "Financial Distress - A Comparative-Study Of Individual, Model, And Committee Assessments," Journal of Accounting Research, Wiley Blackwell, vol. 23(2), pages 527-543.
    14. Lane, Sylvia, 1972. "Submarginal Credit Risk Classification," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 7(1), pages 1379-1385, January.
    15. Houghton, Ka, 1984. "Accounting Data And The Prediction Of Business Failure - The Setting Of Priors And The Age Of Data," Journal of Accounting Research, Wiley Blackwell, vol. 22(1), pages 361-368.
    16. Edmister, Robert O., 1972. "An Empirical Test of Financial Ratio Analysis for Small Business Failure Prediction," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 7(2), pages 1477-1493, March.
    17. 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, September.
    18. Diakoulaki, D & Mavrotas, G & Papayannakis, L, 1992. "A multicriteria approach for evaluating the performance of industrial firms," Omega, Elsevier, vol. 20(4), pages 467-474, July.
    19. Martin, Daniel, 1977. "Early warning of bank failure : A logit regression approach," Journal of Banking & Finance, Elsevier, vol. 1(3), pages 249-276, November.
    20. Micha, Bernard, 1984. "Analysis of business failures in France," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 281-291, June.
    21. Laitinen, Ek, 1993. "Financial predictors for different phases of the failure process," Omega, Elsevier, vol. 21(2), pages 215-228, March.
    22. Santomero, Anthony M. & Vinso, Joseph D., 1977. "Estimating the probability of failure for commercial banks and the banking system," Journal of Banking & Finance, Elsevier, vol. 1(2), pages 185-205, October.
    23. Edward I. Altman, 1968. "The Prediction Of Corporate Bankruptcy: A Discriminant Analysis," Journal of Finance, American Finance Association, vol. 23(1), pages 193-194, March.
    24. Ohlson, Ja, 1980. "Financial Ratios And The Probabilistic Prediction Of Bankruptcy," Journal of Accounting Research, Wiley Blackwell, vol. 18(1), pages 109-131.
    25. Zmijewski, Me, 1984. "Methodological Issues Related To The Estimation Of Financial Distress Prediction Models," Journal of Accounting Research, Wiley Blackwell, vol. 22, pages 59-82.
    26. Altman, Edward I. & Eisenbeis, Robert A., 1978. "Financial Applications of Discriminant Analysis: A Clarification," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 13(1), pages 185-195, March.
    27. Eisenbeis, Robert A, 1977. "Pitfalls in the Application of Discriminant Analysis in Business, Finance, and Economics," Journal of Finance, American Finance Association, vol. 32(3), pages 875-900, June.
    28. Hamer, Michelle M., 1983. "Failure prediction: Sensitivity of classification accuracy to alternative statistical methods and variable sets," Journal of Accounting and Public Policy, Elsevier, vol. 2(4), pages 289-307.
    29. Laitinen, Erkki K., 1992. "Prediction of failure of a newly founded firm," Journal of Business Venturing, Elsevier, vol. 7(4), pages 323-340, July.
    30. Srinivasan, Venkat & Ruparel, Bharat, 1990. "CGX: An expert support system for credit granting," European Journal of Operational Research, Elsevier, vol. 45(2-3), pages 293-308, April.
    31. Altman, Edward I, 1969. "Corporate Bankruptcy Potential, Stockholder Returns and Share Valuation," Journal of Finance, American Finance Association, vol. 24(5), pages 887-900, December.
    32. Tamari, Meir, 1984. "The use of a bankruptcy forecasting model to analyze corporate behavior in Israel," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 293-302, June.
    33. Srinivasan, Venkat & Kim, Yong H, 1987. "Credit Granting: A Comparative Analysis of Classification Procedures," Journal of Finance, American Finance Association, vol. 42(3), pages 665-681, July.
    34. Appetiti, Sandro, 1984. "Identifying unsound firms in Italy : An attempt to use trend variables," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 269-279, June.
    35. Tam, KY, 1991. "Neural network models and the prediction of bank bankruptcy," Omega, Elsevier, vol. 19(5), pages 429-445.
    36. Joy, O. Maurice & Tollefson, John O., 1975. "On the Financial Applications of Discriminant Analysis," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 10(5), pages 723-739, December.
    37. Molinero, C Mar & Ezzamel, M, 1991. "Multidimensional scaling applied to corporate failure," Omega, Elsevier, vol. 19(4), pages 259-274.
    38. Gupta, Mc & Huefner, Rj, 1972. "Cluster Analysis Study Of Financial Ratios And Industry Characteristics," Journal of Accounting Research, Wiley Blackwell, vol. 10(1), pages 77-95.
    39. Altman, Edward I., 1984. "The success of business failure prediction models : An international survey," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 171-198, June.
    40. von Stein, Johann Heinrich & Ziegler, Werner, 1984. "The prognosis and surveillance of risks from commercial credit borrowers," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 249-268, June.
    41. Warner, Jerold B, 1977. "Bankruptcy Costs: Some Evidence," Journal of Finance, American Finance Association, vol. 32(2), pages 337-347, May.
    42. Marais, Ml & Patell, Jm & Wolfson, Ma, 1984. "The Experimental-Design Of Classification Models - An Application Of Recursive Partitioning And Bootstrapping To Commercial Bank Loan Classifications," Journal of Accounting Research, Wiley Blackwell, vol. 22, pages 87-114.
    43. Kar Yan Tam & Melody Y. Kiang, 1992. "Managerial Applications of Neural Networks: The Case of Bank Failure Predictions," Management Science, INFORMS, vol. 38(7), pages 926-947, July.
    44. Keasey, K & McGuinness, P & Short, H, 1990. "Multilogit approach to predicting corporate failure--Further analysis and the issue of signal consistency," Omega, Elsevier, vol. 18(1), pages 85-94.
    45. Luoma, M & Laitinen, EK, 1991. "Survival analysis as a tool for company failure prediction," Omega, Elsevier, vol. 19(6), pages 673-678.
    46. Beaver, Wh, 1966. "Financial Ratios As Predictors Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 4, pages 71-111.
    47. Sadahiko Suzuki & Richard W Wright, 1985. "Financial Structure and Bankruptcy Risk in Japanese Companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 16(1), pages 97-110, March.
    48. Martikainen, Teppo & Ankelo, Timo, 1991. "On the instability of financial patterns of failed firms and the predictability of corporate failure," Economics Letters, Elsevier, vol. 35(2), pages 209-214, February.
    49. Altman, Edward I. & Haldeman, Robert G. & Narayanan, P., 1977. "ZETATM analysis A new model to identify bankruptcy risk of corporations," Journal of Banking & Finance, Elsevier, vol. 1(1), pages 29-54, June.
    50. Freed, Ned & Glover, Fred, 1981. "Simple but powerful goal programming models for discriminant problems," European Journal of Operational Research, Elsevier, vol. 7(1), pages 44-60, May.
    51. Beaver, Wh, 1968. "Market Prices, Financial Ratios, And Prediction Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 6(2), pages 179-192.
    52. Wilcox, Jw, 1971. "Simple Theory Of Financial Ratios As Predictors Of Failure," Journal of Accounting Research, Wiley Blackwell, vol. 9(2), pages 389-345.
    53. Markowski, Carol A. & Markowski, Edward P., 1987. "An experimental comparison of several approaches to the discriminant problem with both qualitative and quantitative variables," European Journal of Operational Research, Elsevier, vol. 28(1), pages 74-78, January.
    54. Mensah, Ym, 1984. "An Examination Of The Stationarity Of Multivariate Bankruptcy Prediction Models - A Methodological Study," Journal of Accounting Research, Wiley Blackwell, vol. 22(1), pages 380-395.
    55. Meyer, Paul A & Pifer, Howard W, 1970. "Prediction of Bank Failures," Journal of Finance, American Finance Association, vol. 25(4), pages 853-868, September.
    56. Dambolena, Ismael G & Khoury, Sarkis J, 1980. "Ratio Stability and Corporate Failure," Journal of Finance, American Finance Association, vol. 35(4), pages 1017-1026, September.
    57. Siskos, Jean & Wascher, Gerhard & Winkels, Heinz-Michael, 1984. "Outranking approaches versus MAUT in MCDM," European Journal of Operational Research, Elsevier, vol. 16(2), pages 270-271, May.
    58. Taffler, Richard J., 1984. "Empirical models for the monitoring of UK corporations," Journal of Banking & Finance, Elsevier, vol. 8(2), pages 199-227, June.
    59. Libby, R, 1975. "Accounting Ratios And Prediction Of Failure - Some Behavioral Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 13(1), pages 150-161.
    60. Collins, Robert A. & Green, Richard D., 1982. "Statistical methods for bankruptcy forecasting," Journal of Economics and Business, Elsevier, vol. 34(4), pages 349-354.
    61. Frydman, Halina & Altman, Edward I & Kao, Duen-Li, 1985. "Introducing Recursive Partitioning for Financial Classification: The Case of Financial Distress," Journal of Finance, American Finance Association, vol. 40(1), pages 269-291, March.
    62. Zanakis, Stelios H. & Walter, Gary A., 1994. "Discriminant characteristics of US banks acquired with or without federal assistance," European Journal of Operational Research, Elsevier, vol. 77(3), pages 440-465, September.
    63. William F. Messier, Jr. & James V. Hansen, 1988. "Inducing Rules for Expert System Development: An Example Using Default and Bankruptcy Data," Management Science, INFORMS, vol. 34(12), pages 1403-1415, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Şaban Çelik, 2013. "Micro Credit Risk Metrics: A Comprehensive Review," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 233-272, October.
    2. Balcaen, Sofie & Ooghe, Hubert, 2006. "35 years of studies on business failure: an overview of the classic statistical methodologies and their related problems," The British Accounting Review, Elsevier, vol. 38(1), pages 63-93.
    3. fernández, María t. Tascón & gutiérrez, Francisco J. Castaño, 2012. "Variables y Modelos Para La Identificación y Predicción Del Fracaso Empresarial: Revisión de La Investigación Empírica Reciente," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 15(1), pages 7-58.
    4. Teija Laitinen & Maria Kankaanpaa, 1999. "Comparative analysis of failure prediction methods: the Finnish case," European Accounting Review, Taylor & Francis Journals, vol. 8(1), pages 67-92.
    5. Layla Khoja & Maxwell Chipulu & Ranadeva Jayasekera, 2016. "Analysing corporate insolvency in the Gulf Cooperation Council using logistic regression and multidimensional scaling," Review of Quantitative Finance and Accounting, Springer, vol. 46(3), pages 483-518, April.
    6. Jackson, Richard H.G. & Wood, Anthony, 2013. "The performance of insolvency prediction and credit risk models in the UK: A comparative study," The British Accounting Review, Elsevier, vol. 45(3), pages 183-202.
    7. Laitinen, Erkki K., 2007. "Classification accuracy and correlation: LDA in failure prediction," European Journal of Operational Research, Elsevier, vol. 183(1), pages 210-225, November.
    8. Petr Jakubík & Petr Teplý, 2011. "The JT Index as an Indicator of Financial Stability of Corporate Sector," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(2), pages 157-176.
    9. Hu, Yu-Chiang & Ansell, Jake, 2007. "Measuring retail company performance using credit scoring techniques," European Journal of Operational Research, Elsevier, vol. 183(3), pages 1595-1606, December.
    10. John W. Pacey & Toan M. Pham, 1990. "The Predictiveness of Bankruptcy Models: Methodological Problems and Evidence," Australian Journal of Management, Australian School of Business, vol. 15(2), pages 315-337, December.
    11. Kurt M. Fanning & Kenneth O. Cogger, 1994. "A Comparative Analysis of Artificial Neural Networks Using Financial Distress Prediction," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 3(4), pages 241-252, December.
    12. Cakir, Murat, 2005. "Firma Başarısızlığının Dinamiklerinin Belirlenmesinde Makina Öğrenmesi Teknikleri: Ampirik Uygulamalar ve Karşılaştırmalı Analiz [Machine Learning Techniques in Determining the Dynamics of Corporat," MPRA Paper 55975, University Library of Munich, Germany.
    13. Jayasekera, Ranadeva, 2018. "Prediction of company failure: Past, present and promising directions for the future," International Review of Financial Analysis, Elsevier, vol. 55(C), pages 196-208.
    14. du Jardin, Philippe, 2015. "Bankruptcy prediction using terminal failure processes," European Journal of Operational Research, Elsevier, vol. 242(1), pages 286-303.
    15. Psillaki, Maria & Tsolas, Ioannis E. & Margaritis, Dimitris, 2010. "Evaluation of credit risk based on firm performance," European Journal of Operational Research, Elsevier, vol. 201(3), pages 873-881, March.
    16. Antonio David Somoza Lopez & Josep Vallverdu Calafell, 2003. "Una comparacion de la seleccion de los ratios contables en los modelos contable-financieros de prediccion de la insolvencia empresarial," Working Papers in Economics 94, Universitat de Barcelona. Espai de Recerca en Economia.
    17. Mohammad Mahdi Mousavi & Jamal Ouenniche & Kaoru Tone, 2023. "A dynamic performance evaluation of distress prediction models," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 42(4), pages 756-784, July.
    18. Dimitras, A. I. & Slowinski, R. & Susmaga, R. & Zopounidis, C., 1999. "Business failure prediction using rough sets," European Journal of Operational Research, Elsevier, vol. 114(2), pages 263-280, April.
    19. Şaban Çelik & Bora Aktan & Bruce Burton, 2022. "Firm dynamics and bankruptcy processes: A new theoretical model," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 41(3), pages 567-591, April.
    20. Westgaard, Sjur & van der Wijst, Nico, 2001. "Default probabilities in a corporate bank portfolio: A logistic model approach," European Journal of Operational Research, Elsevier, vol. 135(2), pages 338-349, December.

    More about this item

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Insolvenzprognoseverfahren in Wikipedia German

    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:ejores:v:90:y:1996:i:3:p:487-513. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.