Performance Comparison of Multiple Discriminant Analysis and Logit Models in Bankruptcy Prediction

Apply Logit analysis in Bankruptcy Prediction

-Signs of a potential business bankruptcy are evident well before actual bankruptcy occurs. For managers, creditors, and all other concerned parties this lag allows time to take remedial action. Therefore, building models, which signal approaching financial failure, have been an important part of corporate finance literature, in order to help management refocus their energy, revaluate their cor...

A Comparison of Corporate Failure Models in Australia: Hybrid Neural Networks, Logit Models and Discriminant Analysis

A comparison of corporate failure models in Australia: Hybrid neural networks, logit models and discriminant analysis. A comparison of corporate failure models in Australia: Hybrid neural networks, logit models and discriminant analysis. Abstract This study investigated whether two artificial neural networks (ANNs), multilayer perceptron (MLP) and hybrid networks using statistical and ANN appro...

A comparison of Australian financial service failure models: Hybrid neural networks, logit models and discriminant analysis

A cross model study of corporate financial distress prediction in Taiwan: Multiple discriminant analysis, logit, probit and neural networks models

In 2008, financial tsunami started to impair the economic development of many countries, including Taiwan. The prediction of financial crisis turns to be much more important and doubtlessly holds public attention when the world economy goes to depression. This study examined the predictive ability of the four most commonly used financial distress prediction models and thus constructed reliable ...

Choosing Bankruptcy Predictors Using Discriminant Analysis, Logit Analysis, and Genetic Algorithms

We are focusing on three alternative techniques that can be used to empirically select predictors for failure prediction purposes. The selected techniques have all different assumptions about the relationships between the independent variables. Linear discriminant analysis is based on linear combination of independent variables, logit analysis uses the logistic cumulative probability function a...