Predicting Corporate Failure in the UK: A Multidimensional Scaling Approach

Evi Neophytou and Cecilio Mar Molinero

Journal of Business Finance & Accounting, 2004, vol. 31, issue 5‐6, 677-710

Abstract: Scaling techniques are proposed as a tool for the analysis and prediction of corporate failure. This approach, while keeping a strong theoretical basis, has the advantage of visualising the main features of the data in the form of statistical maps that lend themselves to intuitive interpretation. The maps contain directional statistics to help with interpretation. The methodology is demonstrated using a sample of UK industrial companies. A future‐dated holdout sample is also employed to illustrate how the Multidimensional Scaling technique can aid practitioners when assessing the financial health of a company.

Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
https://doi.org/10.1111/j.0306-686X.2004.00553.x

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:31:y:2004:i:5-6:p:677-710

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 ().