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Paper Details
Paper Title
A Proposed Model for Industrial Sickness
Authors
Dr. Jay Desai, Nisarg A Joshi
Abstract
The objective of this study is to examine the performance of default prediction model: the Z- score model using discriminant analysis, and to propose a new prediction model on a dataset of 30 defaulted and 30 solvent companies. Financial ratios obtained from corporate balance sheets are used as independent variables while solvent/defaulted company (ratings assigned) is the dependent variable. The predictive ability of the proposed Z score model is higher when compared to both the Altman original Z-score model and the Altman model for emerging markets. The research findings establish the superiority of proposed model over default discriminant analysis and demonstrate the significance of accounting ratios in predicting default.
Keywords- industrial sickness, discriminant analysis, ratio analysis
Publication Details
Unique Identification Number - IJEDR1504131Page Number(s) - 754-760Pubished in - Volume 3 | Issue 4 | December 2015DOI (Digital Object Identifier) - Publisher - IJEDR (ISSN - 2321-9939)
Cite this Article
Dr. Jay Desai, Nisarg A Joshi, "A Proposed Model for Industrial Sickness", International Journal of Engineering Development and Research (IJEDR), ISSN:2321-9939, Volume.3, Issue 4, pp.754-760, December 2015, Available at :http://www.ijedr.org/papers/IJEDR1504131.pdf
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