The majority of past research has focused on the use of literature feedback or factor analysis as metrics for financial distress prediction. The theoretical basis for the former is relatively thin, while the latter is severely limited by data requirements. As such, this paper will instead use grey relation analysis to determine several indices with high levels of relation, and to select several...

This study aims to prove the effect of liquidity, profitability and leverage on financial distress. The was conducted in mining companies listed Indonesia Stock Exchange. population this statements Exchange 2014-2019. sample determined using purposive sampling certain criteria. test carried out multiple regression analysis with SPSS software assistance. results indicate that liquidity variable ...

The main objective of a financial distress prediction model is to generate early warning signals.In this paper, we compare five bankruptcy prediction models, logit ,ANN ,CART, C5.0 and GP decision tree. Our empirical results reveal that the GP decision tree can outperform all the classifiers either in overall percentage of correct or k-fold cross validation test in out-sample. That is to say, G...

We explore how financial distress and choices are affected by noncognitive abilities. Our measures stem from research in psychology and economics. In a representative panel of households, we find that people in the bottom decile of noncognitive abilities are five times more likely to experience financial distress compared to those in the top decile. Relatedly, individuals with lower noncognitiv...

Recently, several spectacular bankruptcies, including Fannie Mae, Freddie Mac, Washington Mutual, Merrill Lynch, and Lehman Brothers, have caught the world by surprise. To improve the accuracy of financial distress predictions, this research compares traditional statistical methods (i.e., linear discriminant analysis, logistic regression), decision tree classification methods (i.e., C5.0, CART,...

The present study, according to our knowledge, is the first attempt to establish a financial distress prediction model for a unique set of enterprises, which are the enterprises listed on the specialized Hong Kong Growth Enterprise Market. It also makes an analysis of corporate financial sustainability and its relationship to financial distress prediction. The logistic regression and jackknife ...