id: 06072923
dt: j
an: 06072923
au: Simić, Dragan; Kovačević, Ilija; Simić, Svetlana
ti: Insolvency prediction for assessing corporate financial health.
so: Log. J. IGPL 20, No. 3, 536-549 (2012).
py: 2012
pu: Oxford University Press, Oxford
la: EN
cc: 
ut: corporate financial health; corporate insolvency; multivariate discriminant
    analysis; self-organized maps
ci: 
li: doi:10.1093/jigpal/jzr009
ab: Summary: The prediction of corporate financial failure, crucial for the
    prevention and mitigation of economic downturns in a national economy,
    requires the categorization of healthy and unhealthy companies. This
    study examines the case of Serbia and applies multivariant statistical
    methods and specific artificial neural network architectures-the
    self-organizing map (SOM)-to assess the corporate financial health of
    various companies. Financial ratios drawn from corporate balance sheets
    become the independent variables in a multivariate discriminant
    analysis (MDA). These financial ratios and the discriminant Z-score in
    the MDA form the input for the SOM, which creates a hybrid MDA-SOM
    model that is capable of predicting corporate financial insolvency. The
    experimental results of this research correctly estimate company
    financial health in 95\% of cases. These are reliable predictions that
    are comparable with similar studies in other countries.
rv: