Bankruptcy Prediction in Retail Industry Using Logistic Regression

Applications of Management Science, Volume 13, Financial Modeling Applications and Data Envelopment Applications, pp. 61-69, 2009

Posted: 28 Nov 2013

See all articles by Kenneth Lawrence

Kenneth Lawrence

New Jersey Institute of Technology - Martin Tuchman School of Management

Dinesh Ramdas Pai

Independent

Gary Kleinman

Montclair State University

Date Written: 2009

Abstract

In view of the failure of high profile companies like Circuit City and Linens n Things, Financial distress or bankruptcy prediction has generated much interest recently. This research develops and tests a model for the prediction of bankruptcy of retail firms. We use accounting variables such as inventories, liabilities, receivables, net income (loss), and revenue. Some guiding discriminate rule is given and a few factors were identified as measures of a profitable company.

Keywords: Bankruptcy Prediction, Retail, Logistic Regression, z-score

JEL Classification: G33, C10, C19

Suggested Citation

Lawrence, Kenneth and Pai, Dinesh Ramdas and Kleinman, Gary, Bankruptcy Prediction in Retail Industry Using Logistic Regression (2009). Applications of Management Science, Volume 13, Financial Modeling Applications and Data Envelopment Applications, pp. 61-69, 2009, Available at SSRN: https://ssrn.com/abstract=2360779

Kenneth Lawrence

New Jersey Institute of Technology - Martin Tuchman School of Management ( email )

United States

Dinesh Ramdas Pai

Independent ( email )

Gary Kleinman (Contact Author)

Montclair State University ( email )

NJ 07043
United States

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