The Financial Distress Prediction Model - Considering the Impact of Market Factors
碩士 === 萬能科技大學 === 經營管理研究所 === 94 === This study explores whether market information can improve the prediction power of corporate distress using Taiwan for example. Two definitions for financial distress are discussed. Our sample is companies fallen into financial distress during 1990 and 2005. We f...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2006
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| Online Access: | http://ndltd.ncl.edu.tw/handle/71460916708604004797 |
| Summary: | 碩士 === 萬能科技大學 === 經營管理研究所 === 94 === This study explores whether market information can improve the prediction power of corporate distress using Taiwan for example. Two definitions for financial distress are discussed. Our sample is companies fallen into financial distress during 1990 and 2005.
We find that model opting market information does improve model accuracy, and provide an earlier warning signal. Debt ratio and stock pledge ratio are the most robust indicators among financial ratios and corporate governance variables. As for market indicators, usage ratio of leverage for long position shows a positive coefficient with financial distress, implying individual investors are still expecting the positive future for the company which are going to bankruptcy.
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