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
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
Recommended Citation
Chen, J., Connolly, A., Corrales, E., & Ke, D. (2014). Logit regression based bankruptcy prediction of Philippine pre-need companies from 2000-2013. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/7556