This study develops bankruptcy prediction models which can be used by decision-makers. Use of prediction models may reduce losses from erroneously classifying firms as bankruptcy candidates or as survivors. / Existing research has produced models which use either ratios or information measures as prediction variables. This study differs from most previous research on bankruptcy prediction in that it is based on a combined model which includes both information measures and ratio changes. Furthermore, realistic prior probabilities and ratios of misclassification costs are incorporated into the models. The predictive ability of the various models are tested using a hold-out sample from a future period. / Overall, this study finds that the combined model has a lower percentage of misclassification than either the ratio model or the information model. Relative costs for the ratio model and the combined model are less than for the information model, but the cost comparison between the combined model and the ratio model is inconclusive. However, both a maximum chance model and a proportional chance model outperform the information model, the ratio model and the combined model with respect to relative costs and the percentage of correct classifications. / The reestimated Moyer's model performs worse than the information model, the ratio model and the combined model with respect to the percentage of correct classifications. But, Moyer's model outperforms the maximum chance model with respect to relative costs when the prior probability and/or cost ratio are (is) high. / Source: Dissertation Abstracts International, Volume: 45-02, Section: A, page: 0560. / Thesis (D.B.A.)--The Florida State University, 1984.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_75277 |
| Contributors | PARK, JEONGDAE., Florida State University |
| Source Sets | Florida State University |
| Detected Language | English |
| Type | Text |
| Format | 174 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
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