Original scientific paper
https://doi.org/10.1515/zireb-2015-0002
The Relevance of Trend Variables for the Prediction of Corporate Crises and Insolvencies
Mario Situm
; University of Applied Sciences, Kufstein, Austria
Abstract
This study investigated the potential of a specific trend, defined as the relative change of accounting ratios for two consecutive years, to improve the classification accuracy and model performance of insolvency prediction models based on multivariate linear discriminant analysis. The results show that the respective trend can include information from both consecutive years, but this informational content could not be exploited to improve early detection of corporate crises and insolvencies.
Keywords
insolvency prediction; discriminant analysis; accounting ratios; trend variables
Hrčak ID:
139015
URI
Publication date:
14.5.2015.
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