Corporate failure: A literature review

La défaillance des entreprises: Une revue de littérature

Safaa Mrani and Loulid Adil
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Safaa Mrani: UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)
Loulid Adil: UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)

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Abstract: This paper provides a comprehensive overview of the corporate failure phenomenon, shedding light on its intricate nature, which has been a subject of continuous exploration since the Great Depression of 1929. This article adopts a methodological approach centered on a meticulous review of the relevant body of work. The findings of this analysis reveal that corporate failure can be defined as a gradual and complex process, resulting from a combination of various factors and events, including economic, financial, legal, and sometimes organizational aspects. This ultimately leads to the company's inability to sustainably fulfill its financial and operational obligations. Typically, failure is anticipated once signs of bankruptcy have been observed. In this context, the article extensively explores the mechanisms of corporate failure as initially formulated by the early pioneers in this discipline. Moreover, it conducts a comprehensive critical assessment of different models for predicting corporate failure. Keywords: Corporate failure, prediction model, bankruptcy, financial ratios

Keywords: Corporate failure prediction model bankruptcy financial ratios; African Scientific Journal; Défaillance d'entreprise; modèle de prédiction; faillite; ratios financiers; Défaillance d'entreprise modèle de prédiction faillite ratios financiers (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-his
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Published in African Scientific Journal, 2023, Recherches Théoriques, Vol. 3 (No. 20 (2023)), https://africanscientificjournal.com/index.php/AfricanScientificJournal/article/view/514. ⟨10.5281/zenodo.8369814⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04219260

DOI: 10.5281/zenodo.8369814

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