Accounting Variables and Bankruptcy Risk for Non-Listed Firms

49 Pages Posted: 6 Oct 2009 Last revised: 10 Sep 2012

See all articles by Bengt Pramborg

Bengt Pramborg

Swedish Export Credit Corporation

Date Written: June 10, 2012


In this paper I investigate the relation between accounting based variables and bankruptcy risk, using information available for non-listed firms. I use a large sample of firms and find that many of the variables suggested earlier in the literature seem to provide little explanatory power. Further, I find that industry classification does not add much explanatory power of bankruptcy risk not captured by other variables. I suggest a seven-factor model including accounting variables and firm age which performs well out-of-sample. The results suggest that estimated coefficients are unstable, but that the variables are consistently strong determinants of bankruptcy risk.

Keywords: Bankruptcy Risk, Hazard Models, Cox Regressions, Private Firms

JEL Classification: G33, M41, C41

Suggested Citation

Pramborg, Bengt, Accounting Variables and Bankruptcy Risk for Non-Listed Firms (June 10, 2012). Available at SSRN: or

Bengt Pramborg (Contact Author)

Swedish Export Credit Corporation

Box 194
Stockholm, 101 23

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