Logit regression based bankruptcy prediction of Philippine pre-need companies from 2000-2013

Date of Publication

2014

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

James Chan

Defense Panel Member

Junnette A. Perez
Renel B. Betita
Alfredo M. Santoyo

Abstract/Summary

The pre-need industry in the Philippines is criticized due to the numerous defaults of pre-need firms. Despite their guaranteed returns, from 200 pre-need companies, 180 went bankrupt as of 2013. This study investigates the effects of changes in financial accounting ratios and macroeconomic variables on the odds of failure. Using logit regression and Altman Z-score, bankruptcy is predicted by assessing the estimated impact of each of the factors. The findings suggest that the real interest rate and the cash flow to total assets ratio are the most crucial factors having the largest positive and negative marginal effect on bankruptcy respectively.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21679

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

74 leaves : illustrations (some color) ; 28 cm.

Keywords

Insurance companies--Philippines; Insurance companies--Philippines--Management; Insurance companies--Investment--Philippines

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