 Bank failure: a multidimensional scaling approachCecilio Mar-Molinero and Carlos Serrano-Cinca () The European Journal of Finance, 2001, vol. 7, issue 2, 165-183 Abstract: Mathematical models for the prediction of company failure are by now well established. Most of the work on multivariate modelling of distress prediction attempts to obtain a score that gives the failure probability of a company. A data set of 66 Spanish banks, 29 of which failed, is used to show that multidimensional scaling (MDS) techniques can be of use to produce simple tools for the analysis of financial health. MDS has the advantage of producing pictorial representations that are easy to interpret and use. This is done without loss of statistical rigour given the very close links between MDS and other multivariate statistical techniques that are normally used in the analysis of failure. As an example, the technique is used to trace the financial path of an ailing bank. Keywords: Bankruptcy Prediction Financial Ratios Multidimensional Scaling Box And Whiskers Diagrams Spanish Banking System (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:taf:eurjfi:v:7:y:2001:i:2:p:165-183 Ordering information: This journal article can be ordered from Access Statistics for this article The European Journal of Finance is currently edited by Chris Adcock More articles in The European Journal of Finance from Taylor & Francis Journals |
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