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Comparing logit model with discriminant analysis for predicting bankruptcy in Portuguese hospitality sector

Year: 2017

Type: article

Abstract: Portugal’s tourism sector is on permanent expansion and contributes significantly to the Portuguese economy. However, it has been facing the problem of business failure. The main goal of this paper is to develop an econometric and a multivariate model for forecasting business failure in the hospitality industry using logit and discriminant analysis. The present paper does not explore the causes of business failure but rather aims to propose a model that may help anticipate failure, so that decision makers can minimize the negative effects of this phenomenon. The results confirm that the models for forecasting business failure contribute positively to setting macroeconomic policies and tourism development support programs and are relevant for investors, stockholders, and decision makers.

Source: European Journal of Tourism Research

DOI: 10.54055/ejtr.v16i.289

Authors: José Pereira, Mário Basto, Amélia Silva

Institutions: Universidade Politécnica do Cávado e do Ave, Centro de Estudos da População Economia e Sociedade, Universidade Técnica do Porto

Language: English

Topic: Financial Distress and Bankruptcy Prediction

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4213093233

FWCI: 5.632

Cites: 17

Cited by: 14

Related to: 10