Browsing by Author "Llano Monelos, Pablo de"
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- A model to forecast financial failure, in non financial galician SMESPublication . Llano Monelos, Pablo de; Piñeiro Sánchez, Carlos; Rodríguez López, ManuelWe are concerned with providing more empirical evidence on forecast failure, developing forecast models, and examining the impact of events such as audit reports. A joint consideration of classic financial ratios and relevant external indicators leads us to build a basic prediction model focused in non-financial Galician SMEs. Explanatory variables are relevant financial indicators from the viewpoint of the financial logic and financial failure theory. The paper explores three mathematical models: discriminant analysis, Logit, and linear multivariate regression. We conclude that, even though they both offer high explanatory and predictive abilities, Logit and MDA models should be used and interpreted jointly.