A heuristic framework for ratio-based modelling of corporate collapse
Contribuinte(s) |
[Unknown] |
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Data(s) |
01/01/2007
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Resumo |
This paper draws on empirical evidence to demonstrate that a heuristic framework signals collapse with significantly higher accuracy than the traditional static approach. Using a sample of 494 US publicly listed companies comprising 247 collapsed matched with 247 financially healthy ones, a heuristic framework is decisively superior the closer one gets to the event of collapse, culminating in 12.5% more overall accuracy than a static approach during<br />the year of collapse. An even more dramatic improvement occurs in relation to reduction of Type I error, with a heuristic framework delivering an improvement of 66.7% over its static counterpart.<br /> |
Identificador | |
Idioma(s) |
eng |
Publicador |
Melbourne Centre for Financial Studies |
Relação |
http://dro.deakin.edu.au/eserv/DU:30008024/hossari-heuristicframework-2007.pdf http://www.melbournecentre.com.au/Finsia_MCFS/2007/Ghassan_Hossari.pdf |
Palavras-Chave | #corporate collapse #heuristic framework #financial ratios |
Tipo |
Conference Paper |