An Early Warning System of Financial Distress Using Multinomial Logit Models and a Bootstrapping Approach

Bi-Huei Tsai*

*此作品的通信作者

研究成果: Article同行評審

13 引文 斯高帕斯(Scopus)

摘要

This study adopts multinomial logit models to separately measure the extent to which financial ratios and corporate governance signal the likelihood of "slight distress events" and "reorganization and bankruptcy." The results show that corporate governance variables are closely related to the occurrence of "slight distress events." The estimated misclassification costs of the 1,000 resamples generated through bootstrapping procedures are statistically lower for a model that makes use of corporate governance (CG model) than one without corporate governance (non-CG model) at all cutoff points in 2009, and cutoff points from 0.11 to 0.27 in 2008. Since corporate governance is incrementally useful in predicting financial distress, the CG model's predictive ability improves as two corporate governance factors are considered: ownership ratio of insiders and pledge-ownership ratio of insiders.

原文English
頁(從 - 到)43-69
頁數27
期刊Emerging Markets Finance and Trade
49
發行號SUPPL2
DOIs
出版狀態Published - 26 7月 2013

指紋

深入研究「An Early Warning System of Financial Distress Using Multinomial Logit Models and a Bootstrapping Approach」主題。共同形成了獨特的指紋。

引用此