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Article
Business failure prediction using statistical techniques: A review
Some Recent Developments in Statistical Theory and Applications
  • Adrian Gepp, Bond University
  • Kuldeep Kumar, Bond University
Date of this Version
1-1-2012
Document Type
Book Chapter
Publication Details

Submitted version

Gepp, A., & Kumar, K. (2012). Business failure prediction using statistical techniques: A review. In K. Kumar & A. Chaturvedi (Eds.). Some Recent Developments in Statistical Theory and Applications (pp 1-25). Boca Raton, Florida, USA: Brown Walker Press

Access the publisher

2012 HERDC submission. FoR code: 010401

© Copyright Kuldeep Kumar & Anoop Chaurvedi

ISBN
9781612335735
Disciplines
Abstract

Accurate business failure prediction models would be extremely valuable to many industry sectors, particularly in financial investment and lending. The potential value of such models has been recently emphasised by the extremely cosdy failure of high profile businesses in both Australia and overseas, such as HIH (Australia) and Enron (USA). Consequently, there has been a significant increase in interest in business failure prediction from both industry and academia. Statistical business failure prediction models attempt to predict the failure or success of a business. Discriminant and logit analyses are the most popular approaches, and there are also a large number of alternatives. In this paper, the various techniques used in previous studies are presented and reviewed, including two alternative techniques that have produced promising results, namely sur vival analysis and decision trees.

Citation Information
Adrian Gepp and Kuldeep Kumar. "Business failure prediction using statistical techniques: A review" Boca Raton, FloridaSome Recent Developments in Statistical Theory and Applications (2012) p. 1 - 25
Available at: http://works.bepress.com/kuldeep_kumar/43/