Revisiting bankruptcy prediction: A review on the application of econometric methodologies in forecasting financial distress
Date of Publication
2009
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Management of Financial Institutions
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Andrew Adrian Y. Pua
Defense Panel Member
Miguel Roberto V. Borromeo
Alfredo M. Santoyo
Abstract/Summary
Several studies have suggested their own methodologies of forecasting bankruptcy or financial distress, however, the researchers of this paper believe that significant concerns (e.g. functional form of the model, industry choice) have to be addressed beforehand in order to avoid committing the same mistakes (e.g. misspecification, biased sample) previous studies have done. Hence, studies relevant to the prediction of bankruptcy were analyzed and criticized, which ultimately resulted to the accumulation of the best practices when it comes to determining the probability that a firm will reach failure, may it be using discriminant analysis, logit or other statistical models. Although, such recommendations are not guaranteed to produce a flawless bankruptcy model, rather, these were formulated as aid in lessening and maximizing the predictive errors and ability, respectively, of the chosen model.
Abstract Format
html
Language
English
Format
Accession Number
TU14816
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
73 leaves ; 28 cm.
Keywords
Bankruptcy--Philippines; Bankruptcy--Forecasting; Risk management"
Recommended Citation
Alaba, J. U., Damole, G. D., Libo-on, F. R., & Salvame, O. O. (2009). Revisiting bankruptcy prediction: A review on the application of econometric methodologies in forecasting financial distress. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/14450
