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.
|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
|Conference||27th Asian-Pacific Conference on International Accounting Issues|
|Period||1/11/15 → 4/11/15|