 Corporate Failure:A Non Parametric MethodInternational Journal of Finance & Banking Studies, 2013, vol. 2, issue 3, 103-110 Abstract: A number of authors suggested that the impact of the macroeconomic factors on the incidence of the financial distress, and afterward in case of failure of companies. However, macroeconomic factors rarely, if ever, appear as variables in predictive models that seek to identify distress and failure; modellers generally suggest that the impact of macroeconomic factors has already been taken into accountby financial ratio variables. This article presents a systematic study of this domain, by examining the link between the failure of companies and macroeconomic factors for theFrench companies to identify the most important variables and to estimate their utility in a predictive context.The results of the study suggest that several macroeconomic variables are strictly associated to the failure, and have a predictive value by specifying the relation between the financial distress and the failure. Keywords: Financial Distress; Macroeconomic Variable; Partial Least Squares (Pls) (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:rbs:ijfbss:v:2:y:2013:i:3:p:103-110 Access Statistics for this article International Journal of Finance & Banking Studies is currently edited by Prof.Dr.Hasan Dincer More articles in International Journal of Finance & Banking Studies from Center for the Strategic Studies in Business and Finance IJFBS Editorial Office, IMU, School of Business. Contact information at EDIRC. |
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