Using financial ratios to predict insolvency

Research output: Contribution to journalArticle

3 Scopus citations

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 languageEnglish (US)
Pages (from-to)93-100
Number of pages8
JournalJournal of Business Research
Volume15
Issue number1
DOIs
StatePublished - Feb 1987

    Fingerprint

ASJC Scopus subject areas

  • Marketing

Cite this