Bank Failure Prediction Models for the Developing and Developed Countries: Identifying the Economic Value Added for Predicting Failure

Yi-Shu Wang, Xue Jiang and Zhen-Jia Liu

Asian Economic and Financial Review, 2016, vol. 6, issue 9, 522-533

Abstract: This study used data from 2003-2013, and used a logistic model to analyze the factors that influence financial early warning systems in developing and developed countries. We employed a bank capital adequacy ratio less than 8%, Tier I capital ratio less than 4%, and nonperforming loan ratio more than one third to measure bank failure and identify the financial ratio that most accurately predicts bank failure. The results indicate that the economic value added index is more effective than other indexes in predicting bank failure in NAFTA, ASEAN, EU, NIC, and G20 nations.

Keywords: Bank failure prediction; Business; Economic value added; Developing countries; Developed countries; Financial early warning. (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/1503/2147 (application/pdf)

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:asi:aeafrj:v:6:y:2016:i:9:p:522-533:id:1503

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().