Corporate Failure Prediction: Some Empirical Evidence from Listed Firms in Ghana
Kingsley Opoku Appiah
Kwame Nkrumah University of Science and Technology
January 31, 2011
China-USA Business Review, Vol. 10, No. 1, January 2011
This paper examines the phenomenon of bankruptcy prediction from a developing economy perspective using the Altman Z-score model. Drawing on empirical data from a sample of 15 non-failed and failed companies listed in Ghana Stock Exchange, we test our empirical model via a cross section of different firms with dataset within 2004 to 2005. Altman’s Z-score is applicable in certain respects in predicting bankruptcy depending on the nature and size of the company in question. Since the literature on corporate failure in African contexts is rather parsimonious, this study makes an important contribution to the global discourse on corporate failure prediction in an increasingly globalised world.
Keywords: corporate failure, prediction, Z-score, Altman, Ghana
Date posted: April 22, 2011
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