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
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: Suggested Citation