PREDICTION OF FINANCIAL DISTRESS BY MULTIVARIATE STATISTICAL ANALYSIS: THE CASE OF FIRMS TAKEN INTO THE SURVEILLANCE MARKET IN THE ISTANBUL STOCK EXCHANGE

Serpil Canbaş (), Yildirim B. Önal (), Hatice G. Düzakin () and Süleyman B. Kiliç ()
Additional contact information
Serpil Canbaş: Department of Management, Faculty of Economics and Administrative Sciences, Çukurova University, Balcalι, Adana, Turkey
Yildirim B. Önal: Department of Management, Faculty of Economics and Administrative Sciences, Çukurova University, Balcalι, Adana, Turkey
Hatice G. Düzakin: Department of Management, Faculty of Economics and Administrative Sciences, Çukurova University, Balcalι, Adana, Turkey
Süleyman B. Kiliç: Department of Management, Faculty of Economics and Administrative Sciences, Çukurova University, Balcalι, Adana, Turkey

International Journal of Theoretical and Applied Finance (IJTAF), 2006, vol. 09, issue 01, 133-150

Abstract: The purpose of this paper is to investigate whether or not firms that are taken into the surveillance market in Istanbul Stock Exchange are experiencing financial distress. The surveillance firms present irregular behaviors and have difficulty complying with current regulation. It can be expected that the basic reason behind these irregular behaviors is financial distress. Results of the study support this expectation and show that it is possible to predict financial distress one year in advance. Principal component analysis and discriminant analysis are combined in order to estimate an integrated early warning model for financial distress prediction.

Keywords: Surveillance firms; financial distress; principal component analysis; discriminant analysis (search for similar items in EconPapers)
Date: 2006
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219024906003470
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijtafx:v:09:y:2006:i:01:n:s0219024906003470

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219024906003470

Access Statistics for this article

International Journal of Theoretical and Applied Finance (IJTAF) is currently edited by L P Hughston

More articles in International Journal of Theoretical and Applied Finance (IJTAF) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().