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 language | English |
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Number of pages | 1 |
Publication status | Published - 2015 |
Event | 27th Asian-Pacific Conference on International Accounting Issues: Global Perspectives of Accounting Information in the 21st Century - Gold Coast, Australia Duration: 1 Nov 2015 → 4 Nov 2015 Conference number: 22nd http://www.apconference.org/ |
Conference
Conference | 27th Asian-Pacific Conference on International Accounting Issues |
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Country/Territory | Australia |
City | Gold Coast |
Period | 1/11/15 → 4/11/15 |
Internet address |