Using financial ratios to predict insolvency

Research output: Contribution to journalArticle

3 Citations (Scopus)

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 - Jan 1 1987

Fingerprint

Analytical techniques
Financial ratios
Insolvency
Discriminant analysis
Credit risk

ASJC Scopus subject areas

  • Marketing

Cite this

Using financial ratios to predict insolvency. / Rushinek, Avi; Rushinek, Sara.

In: Journal of Business Research, Vol. 15, No. 1, 01.01.1987, p. 93-100.

Research output: Contribution to journalArticle

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