search query: @author Karels, G. V. / total: 5
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| Author: | Karels, G. V. Prakash, A. J. |
| Title: | Multivariate normality and forecasting of business bankruptcy |
| Journal: | Journal of Business Finance and Accounting
1987 : WINTER, VOL. 14:4, p.573-594 |
| Index terms: | FORECASTING BANKRUPTCY BUSINESS RATIOS |
| Language: | eng |
| Abstract: | Questions have been raised in the literature about the application of multiple Discriminant Analysis to predict the failure of firms due to the violation of multivariate normality assumption. The assumption of multivariate normality is directly tested on the sets of financial ratios previously employed in corporate failure studies. Results indicate that these ratios cannot be regarded as a sample from a multivariate normal population. It is shown that the discriminant model obtained using the discriminators considerably improve the forecasting accuracy. |
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