Prediction of financially unsuccessful companies using MDA and MRA techniques : An empirical study on Istanbul Stock Exchange

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Prediction of financially unsuccessfull companies 357-376.pdf

Date

1996

Author

Ganamukkala, Vijayakumar C.
Karan, Mehmet Baha

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This study aims to develop a model that can diagnose financially unsuccessful firms one year before the event. Non-bank firms registered on and the equity of which are actively traded in Istanbul Stock Exchange (İSE) are considered. Such a model should prove useful to credit raters, to financial institutions extending short-term loans, to institutional and individual investors. Multidiscriminant analysis (MDA) was used and the results were compared with that of the multiple regression analysis (MRA). The former was 100% accurate, classifying all firms correctly. The result was confirmed by the regression model with 96% accuracy.

URI

https://hdl.handle.net/11511/109538

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

Citation Formats

V. C. Ganamukkala and M. B. Karan, “Prediction of financially unsuccessful companies using MDA and MRA techniques : An empirical study on Istanbul Stock Exchange,” ODTÜ Gelişme Dergisi, vol. 23, no. 3, pp. 357–376, 1996, Accessed: 00, 2024. [Online]. Available: https://hdl.handle.net/11511/109538.