The Impact of Recession on the Prediction of Corporate Failure

Frederick M. Richardson, Gregory D. Kane and Patricia Lobingier

Journal of Business Finance & Accounting, 1998, vol. 25, issue 1‐2, 167-186

Abstract: In this paper, we hypothesize that recessionary business cycles can contribute to corporate failure. Specifically, we test for a relationship between failure and (1) knowledge that failure occurred during a recession and (2) knowledge that the predictor variables were measured during a recession. We are able to show that accounting‐based logistic regression models used to predict corporate failure are sensitive to the occurrence of a recession. Furthermore, our results indicate that such models are sensitive to knowledge that the predictor variables were generated during a recession and to knowledge that failure ultimately occurred during a recession.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://doi.org/10.1111/1468-5957.00182

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:bla:jbfnac:v:25:y:1998:i:1-2:p:167-186

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().