Artikel
Industry specific financial distress modeling
This study investigates uncertainty levels of various industries and tries to determine financial ratios having the greatest information content in determining the set of industry characteristics. It then uses these ratios to develop industry specific financial distress models. First, we employ factor analysis to determine the set of ratios that are most informative in specified industries. Second, we use a method based on the concept of entropy to measure the level of uncertainty in industries and also to single out the ratios that best reflect the uncertainty levels in specific industries. Finally, we conduct a logistic regression analysis and derive industry specific financial distress models which can be used to judge the predictive ability of selected financial ratios for each industry. The results show that financial ratios do indeed echo industry characteristics and that information content of specific ratios varies among different industries. Our findings show diverging impact of industry characteristics on companies; and thus the necessity of constructing industry specific financial distress models."
- Language
-
Englisch
- Bibliographic citation
-
Journal: BRQ Business Research Quarterly ; ISSN: 2340-9436 ; Volume: 20 ; Year: 2017 ; Issue: 1 ; Pages: 45-62 ; Barcelona: Elsevier España
- Classification
-
Management
- Subject
-
Uncertainty
Information theory
Financial ratios
Financial distress modeling
- Event
-
Geistige Schöpfung
- (who)
-
Sayari, Naz
Simga-Mugan, Can
- Event
-
Veröffentlichung
- (who)
-
Elsevier España
- (where)
-
Barcelona
- (when)
-
2017
- DOI
-
doi:10.1016/j.brq.2016.03.003
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Sayari, Naz
- Simga-Mugan, Can
- Elsevier España
Time of origin
- 2017
Other Objects (12)
Social responsibility and financial performance: The role of good corporate governance
Determinants of financial information disclosure: A visualization test by cognitive mapping technique
Investment decisions of companies in financial distress
Determinants of perceived and actual knowledge of commission paid by contributors in the pension funds industry
The poetry of intriguing ideas, logical arguments and rigorous methods in management
Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
The impact of risk and mobility in dualistic models: Migration under random shocks
Spatial equilibrium, market integration and price exogeneity in dry fish marketing in Nigeria: A vector auto-regressive (VAR) approach
Who responds more to monetary policy, conventional banks or participation banks?
“Where do you want to take your family firm?” : A theoretical and empirical exploratory study of family business goals
Growth and structure of authorship and co-authorship network in the strategic management realm: Evidence from the Strategic Management Journal
Cheat to win: How to hack tournament theory
Social responsibility and financial performance: The role of good corporate governance
Determinants of financial information disclosure: A visualization test by cognitive mapping technique
Investment decisions of companies in financial distress
Determinants of perceived and actual knowledge of commission paid by contributors in the pension funds industry
The poetry of intriguing ideas, logical arguments and rigorous methods in management
Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
The impact of risk and mobility in dualistic models: Migration under random shocks
Spatial equilibrium, market integration and price exogeneity in dry fish marketing in Nigeria: A vector auto-regressive (VAR) approach
Who responds more to monetary policy, conventional banks or participation banks?
“Where do you want to take your family firm?” : A theoretical and empirical exploratory study of family business goals
Growth and structure of authorship and co-authorship network in the strategic management realm: Evidence from the Strategic Management Journal
Cheat to win: How to hack tournament theory
Social responsibility and financial performance: The role of good corporate governance
Determinants of financial information disclosure: A visualization test by cognitive mapping technique
Investment decisions of companies in financial distress
Determinants of perceived and actual knowledge of commission paid by contributors in the pension funds industry
The poetry of intriguing ideas, logical arguments and rigorous methods in management
Effects of fiscal deficit and money M2 supply on inflation: Evidence from selected economies of Asia
The impact of risk and mobility in dualistic models: Migration under random shocks
Spatial equilibrium, market integration and price exogeneity in dry fish marketing in Nigeria: A vector auto-regressive (VAR) approach
Who responds more to monetary policy, conventional banks or participation banks?
“Where do you want to take your family firm?” : A theoretical and empirical exploratory study of family business goals
Growth and structure of authorship and co-authorship network in the strategic management realm: Evidence from the Strategic Management Journal