Financial distress prediction model: The effects of corporate governance indicators,Journal of Forecasting

当前位置： X-MOL 学术 › J. Forecast. › 论文详情

Our official English website, www.x-mol.net, welcomes your feedback! (Note: you will need to create a separate account there.)

Financial distress prediction model: The effects of corporate governance indicators
Journal of Forecasting ( IF 2.627 ) Pub Date : 2020-03-25 , DOI: 10.1002/for.2684
Chih‐Chun Chen, Chun‐Da Chen, Donald Lien

This paper constructs a financial distress prediction model that includes not only traditional financial variables, but also several important corporate governance variables. Using data from Taiwan, the empirical results show that the best in‐sample and out‐of‐sample prediction models should combine the financial variables with the corporate governance variables. Moreover, the prediction accuracy is higher for the models using dynamic distress threshold values than those with tradition threshold values. Most financial ratios, except for the debt ratio, are higher in financially sound companies than in financial distressed ones. With regard to the corporate governance variables, we find that the CEO/Chairman duality may not result in the outbreak of financial distress, but higher equity pledge ratios of managers (shareholding ratios by board members and insiders) positively (negatively) correlate with financial distress.

更新日期：2020-03-25

点击分享查看原文

点击收藏

阅读更多本刊最新论文

全部期刊列表>>