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Default probability estimation for financial institutions in evaluating building companies on security market

In order to reduce default risk, financial institutions have been investigating into credit ratings of companies, which they want to give credit to. This research tries to give a method for financial institutions to differentiate between default and normal company with financial ratios, which is already announced in their seasonal financial reports. The samples are abstracted from security markets, and restricted to building companies. With Discriminant analysis and Logistic regression models, financial institutions can estimate what company may become into default situation and others stay in good condition.
According to this research, financial ratios that can be used to discriminate between default and normal companies are: net worth ratio and short-turn borrowing/liquid asset and asset turnover and gross profit margin. It can also be described with asset turnover and gross profit margin if default risk is been estimated.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0909104-021905
Date09 September 2004
CreatorsHuang, Yi-ching
ContributorsChen, Ming-Chi, David S. Shyu, Kuo, Ghau-Jung
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0909104-021905
Rightscampus_withheld, Copyright information available at source archive

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