A Conceptual Framework For Financial Distress Prediction Models And Their Role In Analysing Company Financial Health
Year: 2025
Type: article
Abstract: Financial distress prediction models have become indispensable tools for stakeholders seeking to assess the financial health of companies and anticipate potential difficulties. This paper outlines the conceptual framework underpinning these models, d etailing the key components and interrelationships involved. It explores the theoretical foundations, data types, methodologies, and e valuation metrics used in these models. Furthermore, it analyzes how these models contribute to understanding a company's finan cial health, enabling proactive decision-making by investors, creditors, management, and regulators. By providing early warnings of financial distress, these models facilitate timely intervention and mitigate potential losses.
Authors: Ms. N. Umamaheswari, Dr. L. Karthikeyan, Dr. R. Koushik, Dr. Sreeja J
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6931163723
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