Bankruptcy prediction using industry-specific variables

Khaled Halteh, Kuldeep Kumar

Research output: Contribution to conferenceAbstractResearchpeer-review

Abstract

This paper will set a precedent in Business Failure Prediction (BFP) modelling by testing forthe validity of industry-specific variables using various statistical methods. An analysis offinancial ratios for the Australian marketplace using a number of variables for an experimentdata-set that includes hundreds of existing and bankrupt businesses across five sectors observedover a 12 month period from 2013-2014. Tests are carried out across different parametric andnonparametric techniques to predict potential business bankruptcies. The paper will alsocompare the accuracy of models using industry-specific variables vis-à-vis traditional modelscontaining a predefined set of variables. There are many gains from the study, includingtailoring models to each industry – hence increasing the predictability success rate, and thepotential to aid the economy as a whole not to fall into a recession or slump as a result ofincreased business failure.
Original languageEnglish
Number of pages1
Publication statusPublished - 2015
Event27th Asian-Pacific Conference on International Accounting Issues: Global Perspectives of Accounting Information in the 21st Century - Gold Coast, Australia
Duration: 1 Nov 20154 Nov 2015
Conference number: 22nd
http://www.apconference.org/

Conference

Conference27th Asian-Pacific Conference on International Accounting Issues
CountryAustralia
CityGold Coast
Period1/11/154/11/15
Internet address

Fingerprint

Industry
Bankruptcy prediction
Business failures
Statistical methods
Modeling
Predictability
Ratio analysis
Recession
Failure prediction
Testing

Cite this

Halteh, K., & Kumar, K. (2015). Bankruptcy prediction using industry-specific variables. Abstract from 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia.
Halteh, Khaled ; Kumar, Kuldeep. / Bankruptcy prediction using industry-specific variables. Abstract from 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia.1 p.
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Halteh, K & Kumar, K 2015, 'Bankruptcy prediction using industry-specific variables' 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia, 1/11/15 - 4/11/15, .

Bankruptcy prediction using industry-specific variables. / Halteh, Khaled; Kumar, Kuldeep.

2015. Abstract from 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia.

Research output: Contribution to conferenceAbstractResearchpeer-review

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M3 - Abstract

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Halteh K, Kumar K. Bankruptcy prediction using industry-specific variables. 2015. Abstract from 27th Asian-Pacific Conference on International Accounting Issues, Gold Coast, Australia.