Development of a Method to Assess the Relevant Variables and the Probability of Financial Distress

Harvey R. Crapp and Maxwell Stevenson
Additional contact information
Harvey R. Crapp: Australian Bank Limited.
Maxwell Stevenson: Kuring-gai College of Advanced Education, Australia.

Australian Journal of Management, 1987, vol. 12, issue 2, 221-236

Abstract: This study develops a method to select variables, and to specify the relative importance of those variables, as input for failure models. In addition, our method provides estimates of the failure probabilities of organisations at a point in time. The results of tests of our method on Australian credit unions are intuitively appealing, given the recent experiences of the Australian financial market generally, and the credit union industry in particular.

Keywords: FINANCIAL DISTRESS; VARIABLE SELECTION; FAILURE PROBABILITY; CREDIT UNIONS (search for similar items in EconPapers)
Date: 1987
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:12:y:1987:i:2:p:221-236

DOI: 10.1177/031289628701200205

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