Predictive Power of Financial Ratios in Business Failure: Evidence from UK Companies Using Logistic Regression

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Zhao, X (2012) Predictive Power of Financial Ratios in Business Failure: Evidence from UK Companies Using Logistic Regression. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

THIS PAPER EXAMINES THE PREDICTIVE POWER BY FINANCIAL RATIOS IN BUSINESS FAILURE FOR A SAMPLE OF 216 UK COMPANIES BETWEEN 2003 AND 2007. EMPIRICAL RESULTS SHOW THAT THE MOST IMPORTANT DETERMINANTS OF BANKRUPTCY ARE SIZE, PROFITABILITY, LIQUIDITY AND CASH FLOW POSITION. THE PREDICTIVE POWER OF THE LOGISTIC MODEL IS REASONABLY HIGH OF OVERALL FIVE SAMPLE YEARS PRIOR TO BUSINESS FAILURE.

Item Type: Dissertation (University of Nottingham only)
Keywords: FINANCIAL RATIOS, BUSINESS FAILURE, LOGISTIC REGRESSION
Depositing User: EP, Services
Date Deposited: 08 Apr 2013 12:03
Last Modified: 18 Jan 2018 06:54
URI: https://eprints.nottingham.ac.uk/id/eprint/25620

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