Work

Cross-strait Financial Distress Pre-warning Models that Include Corporate Governance: Reestimating Ohlson's Models

Year: 2015

Type: article

Abstract: This paper uses listed cross-strait (China and Taiwan) companies during 2006–2010 to demonstrate the application of a logistic regression to establish financial distress pre-warning models. The bankruptcy indicators are selected by three stages, namely a Wilcoxon test, a ridge regression, and a stepwise refinement. We attempt to determine whether predictors can be obtained by incorporating corporate governance variables that could increase failure predictability. Both non-outstanding state shares and share-holding of placement institutions are flagged positively and significantly in the pre-warning model in China; this finding conforms with the

Source: Universal Journal of Accounting and Finance

DOI: 10.13189/ujaf.2015.030206

Authors: Kuang-hua Hu, Da-bai Shen, Jin-Long Huang

Institutions: Sun Yat-sen University, Soochow University

Language: English

Topic: Financial Distress and Bankruptcy Prediction

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: diamond

OpenAlex ID: W648953395