{"id":"https://openalex.org/W2183128548","doi":"https://doi.org/10.1177/0256090920060304","title":"Predictive Power of Financial Risk Factors: An Empirical Analysis of Default Companies","display_name":"Predictive Power of Financial Risk Factors: An Empirical Analysis of Default Companies","publication_year":2006,"publication_date":"2006-07-01","ids":{"openalex":"https://openalex.org/W2183128548","doi":"https://doi.org/10.1177/0256090920060304","mag":"2183128548"},"language":"en","primary_location":{"id":"doi:10.1177/0256090920060304","doi":"https://doi.org/10.1177/0256090920060304","is_oa":true,"landing_page_url":"https://doi.org/10.1177/0256090920060304","pdf_url":"https://journals.sagepub.com/doi/pdf/10.1177/0256090920060304","source":{"id":"https://openalex.org/S4210172426","display_name":"Vikalpa The Journal for Decision Makers","issn_l":"0256-0909","issn":["0256-0909","2395-3799"],"is_oa":false,"is_in_doaj":true,"is_core":true,"listed_in":["cwts-core","doaj","poland-20","russia-white-list-2"],"host_organization":"https://openalex.org/P4310320017","host_organization_name":"SAGE Publishing","host_organization_lineage":["https://openalex.org/P4310320017"],"host_organization_lineage_names":["SAGE Publishing"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Vikalpa: The Journal for Decision Makers","raw_type":"journal-article"},"volume":null,"type":"article","indexed_in":["crossref","doaj"],"open_access":{"is_oa":true,"oa_status":"bronze","oa_url":"https://journals.sagepub.com/doi/pdf/10.1177/0256090920060304","any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5010682903","display_name":"M Jayadev","orcid":"https://orcid.org/0000-0001-5892-3228","observed_orcids":["https://orcid.org/0000-0001-5892-3228"]},"institutions":[],"countries":[],"is_corresponding":true,"raw_author_name":"M Jayadev","raw_affiliation_strings":[],"raw_orcid":null,"affiliations":[]}],"institutions":[],"countries_distinct_count":0,"institutions_distinct_count":0,"corresponding_author_ids":["https://openalex.org/A5010682903"],"corresponding_institution_ids":[],"apc_list":{"value":0,"currency":"USD","value_usd":0},"apc_paid":null,"fwci":0.0,"has_fulltext":true,"cited_by_count":22,"citation_normalized_percentile":{"value":0.37629943,"is_in_top_1_percent":false,"is_in_top_10_percent":false},"cited_by_percentile_year":{"min":88,"max":97},"biblio":{"volume":"31","issue":"3","first_page":"45","last_page":"56"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T11653","display_name":"Financial Distress and Bankruptcy Prediction","score":1.0,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T11653","display_name":"Financial Distress and Bankruptcy Prediction","score":1.0,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11496","display_name":"Credit Risk and Financial Regulations","score":0.0,"subfield":{"id":"https://openalex.org/subfields/2003","display_name":"Finance"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12509","display_name":"Corporate Insolvency and Governance","score":0.0,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/default-prediction","display_name":"default prediction","score":0.6669999957084656},{"id":"https://openalex.org/keywords/altman-z-score","display_name":"Altman Z-score","score":0.9089999794960022},{"id":"https://openalex.org/keywords/financial-ratios","display_name":"financial ratios","score":0.7110000252723694},{"id":"https://openalex.org/keywords/credit-risk","display_name":"credit risk","score":0.7149999737739563},{"id":"https://openalex.org/keywords/default-prediction-models","display_name":"default prediction models","score":0.5730000138282776},{"id":"https://openalex.org/keywords/indian-banks","display_name":"Indian banks","score":0.8080000281333923},{"id":"https://openalex.org/keywords/current-ratio","display_name":"current ratio","score":0.7879999876022339},{"id":"https://openalex.org/keywords/debt-equity-ratio","display_name":"debt to equity ratio","score":0.9940000176429749},{"id":"https://openalex.org/keywords/operating-margin","display_name":"return on sales","score":0.781000018119812},{"id":"https://openalex.org/keywords/asset-turnover","display_name":"asset turnover","score":0.6230000257492065},{"id":"https://openalex.org/keywords/credit-ratings","display_name":"credit ratings","score":0.4230000078678131},{"id":"https://openalex.org/keywords/corporate-bankruptcy-prediction","display_name":"corporate bankruptcy prediction","score":0.4169999957084656},{"id":"https://openalex.org/keywords/emerging-markets","display_name":"emerging markets","score":0.4779999852180481},{"id":"https://openalex.org/keywords/indian-firms","display_name":"Indian companies","score":0.35199999809265137}],"concepts":[{"id":"https://openalex.org/C74153512","wikidata":"https://www.wikidata.org/wiki/Q167064","display_name":"Debt-to-equity ratio","level":4,"score":0.6210281848907471},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.5363112688064575},{"id":"https://openalex.org/C2778098874","wikidata":"https://www.wikidata.org/wiki/Q240691","display_name":"Retained earnings","level":3,"score":0.5310961008071899},{"id":"https://openalex.org/C149782125","wikidata":"https://www.wikidata.org/wiki/Q160039","display_name":"Econometrics","level":1,"score":0.5233936905860901},{"id":"https://openalex.org/C112896921","wikidata":"https://www.wikidata.org/wiki/Q1728600","display_name":"Asset turnover","level":4,"score":0.5103030204772949},{"id":"https://openalex.org/C124972522","wikidata":"https://www.wikidata.org/wiki/Q1303176","display_name":"Equity ratio","level":4,"score":0.4897732734680176},{"id":"https://openalex.org/C98014903","wikidata":"https://www.wikidata.org/wiki/Q832161","display_name":"Financial ratio","level":2,"score":0.452304869890213},{"id":"https://openalex.org/C169824061","wikidata":"https://www.wikidata.org/wiki/Q1761731","display_name":"Book value","level":3,"score":0.43701547384262085},{"id":"https://openalex.org/C60679458","wikidata":"https://www.wikidata.org/wiki/Q823288","display_name":"Working capital","level":2,"score":0.43318068981170654},{"id":"https://openalex.org/C135665773","wikidata":"https://www.wikidata.org/wiki/Q2234049","display_name":"Debt ratio","level":3,"score":0.42998558282852173},{"id":"https://openalex.org/C106159729","wikidata":"https://www.wikidata.org/wiki/Q2294553","display_name":"Financial economics","level":1,"score":0.4141445755958557},{"id":"https://openalex.org/C52272595","wikidata":"https://www.wikidata.org/wiki/Q2210989","display_name":"Current ratio","level":3,"score":0.41354838013648987},{"id":"https://openalex.org/C155530773","wikidata":"https://www.wikidata.org/wiki/Q591174","display_name":"Return on equity","level":3,"score":0.37570178508758545},{"id":"https://openalex.org/C162118730","wikidata":"https://www.wikidata.org/wiki/Q1128453","display_name":"Actuarial science","level":1,"score":0.37411361932754517},{"id":"https://openalex.org/C120527767","wikidata":"https://www.wikidata.org/wiki/Q3196867","display_name":"Debt","level":2,"score":0.37239623069763184},{"id":"https://openalex.org/C2781426361","wikidata":"https://www.wikidata.org/wiki/Q5326940","display_name":"Earnings","level":2,"score":0.34365397691726685},{"id":"https://openalex.org/C185669311","wikidata":"https://www.wikidata.org/wiki/Q1163221","display_name":"Return on assets","level":3,"score":0.22636514902114868},{"id":"https://openalex.org/C10138342","wikidata":"https://www.wikidata.org/wiki/Q43015","display_name":"Finance","level":1,"score":0.22507193684577942},{"id":"https://openalex.org/C149923435","wikidata":"https://www.wikidata.org/wiki/Q37732","display_name":"Demography","level":1,"score":0.0},{"id":"https://openalex.org/C144024400","wikidata":"https://www.wikidata.org/wiki/Q21201","display_name":"Sociology","level":0,"score":0.0},{"id":"https://openalex.org/C2908647359","wikidata":"https://www.wikidata.org/wiki/Q2625603","display_name":"Population","level":2,"score":0.0},{"id":"https://openalex.org/C183582576","wikidata":"https://www.wikidata.org/wiki/Q184783","display_name":"Market liquidity","level":2,"score":0.0},{"id":"https://openalex.org/C129361004","wikidata":"https://www.wikidata.org/wiki/Q2470236","display_name":"Profitability index","level":2,"score":0.0},{"id":"https://openalex.org/C200870193","wikidata":"https://www.wikidata.org/wiki/Q11691","display_name":"Stock exchange","level":2,"score":0.0},{"id":"https://openalex.org/C100363876","wikidata":"https://www.wikidata.org/wiki/Q690661","display_name":"Nonprobability sampling","level":3,"score":0.0}],"mesh":[],"locations_count":1,"locations":[{"id":"doi:10.1177/0256090920060304","doi":"https://doi.org/10.1177/0256090920060304","is_oa":true,"landing_page_url":"https://doi.org/10.1177/0256090920060304","pdf_url":"https://journals.sagepub.com/doi/pdf/10.1177/0256090920060304","source":{"id":"https://openalex.org/S4210172426","display_name":"Vikalpa The Journal for Decision Makers","issn_l":"0256-0909","issn":["0256-0909","2395-3799"],"is_oa":false,"is_in_doaj":true,"is_core":true,"listed_in":["cwts-core","doaj","poland-20","russia-white-list-2"],"host_organization":"https://openalex.org/P4310320017","host_organization_name":"SAGE Publishing","host_organization_lineage":["https://openalex.org/P4310320017"],"host_organization_lineage_names":["SAGE Publishing"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Vikalpa: The Journal for Decision Makers","raw_type":"journal-article"}],"best_oa_location":{"id":"doi:10.1177/0256090920060304","doi":"https://doi.org/10.1177/0256090920060304","is_oa":true,"landing_page_url":"https://doi.org/10.1177/0256090920060304","pdf_url":"https://journals.sagepub.com/doi/pdf/10.1177/0256090920060304","source":{"id":"https://openalex.org/S4210172426","display_name":"Vikalpa The Journal for Decision Makers","issn_l":"0256-0909","issn":["0256-0909","2395-3799"],"is_oa":false,"is_in_doaj":true,"is_core":true,"listed_in":["cwts-core","doaj","poland-20","russia-white-list-2"],"host_organization":"https://openalex.org/P4310320017","host_organization_name":"SAGE Publishing","host_organization_lineage":["https://openalex.org/P4310320017"],"host_organization_lineage_names":["SAGE Publishing"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Vikalpa: The Journal for Decision Makers","raw_type":"journal-article"},"sustainable_development_goals":[],"study_designs":[],"awards":[],"funders":[],"has_content":{"grobid_xml":true,"pdf":true},"content_urls":{"pdf":"https://content.openalex.org/works/W2183128548.pdf","grobid_xml":"https://content.openalex.org/works/W2183128548.grobid-xml"},"referenced_works_count":10,"referenced_works":["https://openalex.org/W607851425","https://openalex.org/W623237932","https://openalex.org/W1536796998","https://openalex.org/W1564856853","https://openalex.org/W1908382532","https://openalex.org/W2105973145","https://openalex.org/W2160161792","https://openalex.org/W2167852021","https://openalex.org/W2188563032","https://openalex.org/W4285719527"],"related_works":["https://openalex.org/W2101974668","https://openalex.org/W65284698","https://openalex.org/W1841545066","https://openalex.org/W7018915423","https://openalex.org/W3026334436","https://openalex.org/W2119764370","https://openalex.org/W2393406762","https://openalex.org/W7099538147","https://openalex.org/W2257325975","https://openalex.org/W2788212083"],"abstract_inverted_index":{"This":[0],"paper":[1],"provides":[2],"empirical":[3],"evidence":[4],"on":[5,22,340,441],"the":[6,30,57,81,87,91,135,173,178,181,188,191,197,207,244,247,257,268,286,290,295,301,320,323,327,336,350,364,374,386,411,421,425,439,442],"significance":[7],"of":[8,29,37,69,86,109,119,122,126,134,180,200,243,256,309,322,335,344,358,363,379,444,456],"financial":[9,27,387],"risk":[10,51,388],"factors":[11,389],"in":[12,49,61,284,304,325,361,394,403,409],"predicting":[13,285,359,380],"default":[14,208,287,360,414],"companies.":[15,202,288,366],"Traditionally,":[16],"credit":[17,50,83,306,434],"decision":[18],"process":[19],"is":[20,56,77,105,128,161,250,260,294,311,338,356],"built":[21],"accounting":[23],"ratios":[24,34,92,133,179,273],"derived":[25],"from":[26,210],"statements":[28],"borrower.":[31],"Combining":[32],"various":[33,433,454],"through":[35],"application":[36],"multivariate":[38],"statistical":[39],"techniques":[40],"and":[41,90,99,149,153,166,228,237,246,277,415,427],"testing":[42],"their":[43,395,445],"predictive":[44],"power":[45],"has":[46],"been":[47],"popular":[48],"quantification.":[52],"Altman's":[53,110,298,354],"Z-score":[54,70,451],"model":[55,60,324,337,355],"most":[58,269,362],"acceptable":[59],"this":[62,65,429],"category.":[63],"In":[64,186],"paper,":[66],"three":[67,132,189],"forms":[68],"models":[71,85,308,398,408],"are":[72,138,184,193,281,377,399],"applied:":[73],"The":[74,102,130,158,203,240,347,353,367,382],"first":[75,258],"equation":[76,104,113,137,160,183,259,299],"developed":[78],"by":[79,195,392],"surveying":[80],"internal":[82,305,396,422],"rating":[84,307,397],"Indian":[88],"banks":[89,310,393,448],"selected":[93,375],"are:":[94,213],"current":[95,214,275],"ratio,":[96,98,176,215,217],"debt-equity":[97,216,278],"operating":[100,218],"margin.":[101],"second":[103,136,182,245],"similar":[106],"to":[107,141,146,155,222,230,235,405,431],"that":[108,255,267,373,385],"(1968)":[111],"original":[112],"with":[114,424],"a":[115,313],"slight":[116],"modification:":[117],"instead":[118],"debt-to-market":[120],"value":[121,125],"equity,":[123],"debt-to-book":[124],"equity":[127],"considered.":[129,185],"other":[131,406],"working":[139,220],"capital":[140,221],"total":[142,147,156,223,231],"assets,":[143,148,224,232],"retained":[144],"earnings":[145,150,225],"before":[151,226],"interest":[152,227],"taxes":[154],"assets.":[157],"third":[159,248],"called":[162],"as":[163],"Altman,":[164],"Hartzell":[165],"Peck's":[167],"\u2018Emerging":[168],"Market":[169],"Score":[170],"Model.\u2019":[171],"Except":[172],"asset":[174],"turnover":[175],"all":[177,187],"equations,":[190],"coefficients":[192,440],"estimated":[194],"using":[196],"development":[198],"sample":[199,365,369],"112":[201],"dominant":[204],"variables":[205,302,376],"discriminating":[206,410],"companies":[209,329],"non-default":[211,416],"ones":[212],"margin,":[219],"tax":[229],"net":[233],"worth":[234],"debt,":[236],"asset-turnover":[238],"ratio.":[239,317],"classification":[241],"accuracy":[242,292,316,370],"equations":[249],"82":[251],"per":[252,263],"cent":[253],"while":[254],"only":[261],"57":[262],"cent.":[264],"It":[265],"implies":[266],"widely":[270],"used":[271],"two":[272,341,407],"\u2014":[274,280],"ratio":[276,279,293],"relatively":[282,314],"poor":[283],"Similarly,":[289],"ROC":[291],"highest":[296],"for":[297,453],"whereas":[300],"considered":[303,391],"having":[312],"low":[315],"To":[318],"test":[319,334],"ability":[321],"identifying":[326],"defaulting":[328],"correctly,":[330],"an":[331],"unbiased":[332],"diagnostic":[333],"conducted":[339],"separate":[342],"sets":[343],"defaulted":[345],"firms.":[346],"results":[348,371],"reveal":[349],"following":[351],":":[352],"capable":[357,378],"hold-out":[368],"show":[372],"default.":[381],"analysis":[383],"shows":[384],"being":[390],"not":[400],"very":[401],"effective":[402],"comparison":[404],"firms":[412],"into":[413],"categories.":[417],"Banks":[418],"can":[419,449],"map":[420],"ratings":[423],"Z-scores":[426],"scale":[428],"up":[430],"assign":[432],"ratings.":[435],"By":[436],"arriving":[437],"at":[438],"basis":[443],"own":[446],"database,":[447],"develop":[450],"calculators":[452],"segments":[455],"borrowers.":[457]},"counts_by_year":[{"year":2025,"cited_by_count":3},{"year":2022,"cited_by_count":1},{"year":2021,"cited_by_count":1},{"year":2019,"cited_by_count":2},{"year":2018,"cited_by_count":1},{"year":2017,"cited_by_count":2},{"year":2016,"cited_by_count":2},{"year":2015,"cited_by_count":3},{"year":2014,"cited_by_count":3},{"year":2012,"cited_by_count":2}],"updated_date":"2026-10-27T15:51:10.671819","created_date":"2016-06-24T00:00:00"}