Abstract
The purpose of this study is to explore the feasibility of using financial ratios as an analytical technique to predict financial insolvency. Using discriminant analysis, a credit-risk score was calculated to determine if a lender should accept or reject a prospective borrower. This study reveals that 80% of the cases were correctly predicted by this model.
Original language | English (US) |
---|---|
Pages (from-to) | 93-100 |
Number of pages | 8 |
Journal | Journal of Business Research |
Volume | 15 |
Issue number | 1 |
DOIs | |
State | Published - Feb 1987 |
ASJC Scopus subject areas
- Marketing