This study compares two corporate failure prediction models, namely; multiple discriminant analysis (MDA) and logistic regression (Logit) in an attempt to; identify whether or not financial ratios can be used as indicators of failure in the UK, to identify financial ratios that are most important for detecting potential insolvency of UKs public listed companies and also which model is better in predicting corporate failure. The study employed financial information for a group of 50 distressed and 50 non-distressed UK listed companies during the period 2000-2010. The initial sample of 100...
This study compares two corporate failure prediction models, namely; multiple discriminant analysis (MDA) and logistic regression (Logit) in an attemp...