A Novel Financial Distress Prediction Model based on Panel Logit
This study has demonstrates the feasibility of constructing panel logit models that compute the probability that a company will be fall into financial distress. The probabilistic predictions generated by the panel logit model can provide a measure of the companys financial position .From the panel logit model, it can be concluded that variables associated with working capital to total assets, operating profits to operating income, earnings per share, retained profits to total assets, receivable turnover, growth rate of total assets and the portion of state-owned shares are factors that can slow down the financial distress process, while the variable associated with the proportion of outstanding shares is the factor that can accelerate the financial distress process. So companies should try their best to make the former larger and make the latter smaller.
panel logit financial distress prediction
Zhengdao Li
Xinhua School of Finance and Insurance, Zhongnan University of Economics and Law Hubei Institute for Monetary Research
国际会议
桂林
英文
347-350
2010-11-17（万方平台首次上网日期，不代表论文的发表时间）