论文信息 - Financial Ratios as Predictors of Bankruptcy in Japan : An Empirical Research

Financial Ratios as Predictors of Bankruptcy in Japan : An Empirical Research

After the burst of the bubble economy in 1990, the Japanese economy has been on a downward slide and many companies have been faced with financial difficulties. Hence, a certain prediction model to assess the financial distress of Japanese firms is required. This paper presents some empirical results of a study regarding financial ratios as predictors of Japanese corporate failure, evidenced by bankruptcy. A few empirical studies of corporate bankruptcy in Japan have been undertaken. However, the results of these studies are not generalizable, due to the limited size of their samples. In contrast, the model proposed in this study is a universal model which is independent of industry and size. The study proves that the model can predict bankruptcy with more than 86.14% accuracy regardless of industry and size.

Cindy Yoshiko Shirata

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