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Corporate financial distress prediction: An application of Multiple Discriminant analysis

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dc.contributor.author Rathnayake, K. D. S. M.
dc.contributor.author Samarakoon, S. M. R. K.
dc.date.accessioned 2021-04-20T06:34:44Z
dc.date.accessioned 2022-07-07T08:44:23Z
dc.date.available 2021-04-20T06:34:44Z
dc.date.available 2022-07-07T08:44:23Z
dc.date.issued 2020
dc.identifier.issn 2478-1126
dc.identifier.uri http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/2553
dc.description.abstract Recent failures of large corporations at the international level and instability of securities in Sri Lanka have emphasized the importance of evaluating the companies' financial distress. One of the methods of evaluating financial distress is bankruptcy prediction models. They are the tools for measuring the financial healthiness of companies in the future. This research aims to bring out the theoretical foundations and make a deep study about the results of Altman’s model (1968) in the Colombo Stock Exchange through statistical techniques of Multiple Discriminant Analysis and Logistic Regression Model. The data was gathered from 2013 to 2018. The results obtained from the Multiple Discriminant Analysis identified that Altman’s model could predict bankruptcy within one year before with an accuracy rate of 72.10%. According to the logistic regression analysis, Altman’s model has a higher predictability power. This research's findings can be applied by potential investors when designing their investment strategies in healthy financial companies. en_US
dc.language.iso en en_US
dc.publisher University of Jaffna en_US
dc.subject bankruptcy prediction models en_US
dc.subject financial distress en_US
dc.subject multiple discriminant analysis en_US
dc.title Corporate financial distress prediction: An application of Multiple Discriminant analysis en_US
dc.type Article en_US


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