{"id":1467,"date":"2025-02-21T17:15:10","date_gmt":"2025-02-21T15:15:10","guid":{"rendered":"https:\/\/sites.uwasa.fi\/mfjuva\/?page_id=1467"},"modified":"2026-04-27T15:58:43","modified_gmt":"2026-04-27T12:58:43","slug":"1467-2","status":"publish","type":"page","link":"https:\/\/sites.uwasa.fi\/mfjuva\/all-issues\/1467-2\/","title":{"rendered":""},"content":{"rendered":"

A Multicriteria Discrimination Method for the Prediction of Financial Distress: The Case of Greece<\/a><\/p>\n

Multinational Finance Journal, 1999, vol. 3, no. 2, pp. 71\u2013101 |\u00a0https:\/\/doi.org\/10.17578\/3-2-1<\/a><\/strong><\/p>\n

Michael Doumpos<\/strong>, Technical University of Crete, Greece<\/p>\n

Constantin Zopounidis<\/strong>, Technical University of Crete, Greece<\/p>\n

Abstract:
\nFinancial distress prediction is an essential issue in finance. Especially in emerging economies, predicting the future financial situation of individual corporate entities is even more significant, bearing in mind the general economic turmoil that can be caused by business failures. The research on developing quantitative financial distress prediction models has been focused on building discriminant models distinguishing healthy firms from financially distressed ones. Following this discrimination approach, this paper explores the applicability of a new non\u2013parametric multicriteria decision aid discrimination method, called M.H.DIS, to predict financial distress using data concerning the case of Greece. A comparison with discriminant and logit analysis is performed using both a basic and a holdout sample. The results show that M.H.DIS can be considered as a new alternative tool for financial distress prediction. Its performance is superior to discriminant analysis and comparable to logit analysis.<\/p>\n

Keywords: discrimination, financial distress, mathematical programming, multi-criteria decision aid<\/p>\n

Citation (Format 1)
\nDoumpos, Michael, and Constantin Zopounidis, 1999, A Multicriteria Discrimination Method for the Prediction of Financial Distress: The Case of Greece,\u00a0Multinational Finance Journal<\/em>, 3 (2), 71\u2013101.
\nCitation (Format 2)
\nDoumpos, M., Zopounidis, C., 1999. A Multicriteria Discrimination Method for the Prediction of Financial Distress: The Case of Greece. Multinational Finance Journal, 3 (2), 71\u2013101.<\/p>\n

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An Investigation of Thai Listed Firms\u2019 Financial Distress Using Macro and Micro Variables<\/a><\/p>\n

Multinational Finance Journal, 1999, vol. 3, no. 2, pp. 103\u2013125| https:\/\/doi.org\/10.17578\/3-2-2<\/strong><\/a><\/p>\n

Sunti Tirapat<\/strong>, Chulalongkorn University, Thailand<\/p>\n

Aekkachai Nittayagasetwat<\/strong>, National Institute of Development Administration, Thailand<\/p>\n

Abstract:
\nThe emergence of the economic crisis in Thailand in 1997 is an interesting case for academic studies.\u00a0 Internationally, it had a contagion effect, spreading to countries in Asia and in other regions.\u00a0 Domestically, it caused a great many industrial and corporate bankruptcies.\u00a0 The Thai economy had been relatively stable since 1984. The recent development in 1997, however, produced a sudden economic slump resulting in closures of many Thai corporations.\u00a0 Using a logit regression, this study develops a macro-related micro-crisis investigation model. The significance of the model is in its ability to bridge a firm\u2019s sensitivity to macroeconomic conditions and its financial characteristics in order to explore a firm\u2019s financial distress. The findings indicate that macroeconomic conditions are critical indicators of potential financial crisis for a firm.\u00a0 The article shows that the higher a firm\u2019s sensitivity to inflation, the higher the firm\u2019s exposure to financial distress.<\/p>\n

Keywords: bankruptcy, financial distress, prediction model, and Thailand crisis<\/p>\n

Citation (Format 1)
\nTirapat, Sunti, and Aekkachai Nittayagasetwat, 1999, An Investigation of Thai Listed Firms\u2019 Financial Distress Using Macro and Micro Variables,\u00a0Multinational Finance Journal<\/em>, 3 (2), 103\u2013125.
\nCitation (Format 2)
\nTirapat, S., Nittayagasetwat, A., 1999. An Investigation of Thai Listed Firms\u2019 Financial Distress Using Macro and Micro Variables. Multinational Finance Journal, 3 (2), 103\u2013125.<\/p>\n

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Using Financial Information to Differentiate Failed vs. Surviving Finance Companies in Thailand: An Implication for Emerging Economies<\/a><\/p>\n

Multinational Finance Journal, 1999, vol. 3, no. 2, pp. 127\u2013145 |\u00a0https:\/\/doi.org\/10.17578\/3-2-3<\/a><\/strong><\/p>\n

Obeua S. Persons<\/strong>, Rider University, U.S.A.<\/p>\n

Abstract:
\nThis article combines qualitative and quantitative information from financial statements and auditors\u2019 reports with logistic models to differentiate failed from surviving finance companies in Thailand.\u00a0 Failed companies are those that were forced to suspend their operations in mid-1997.\u00a0 The results indicate that auditors\u2019 reports from the 1996 financial statements did not differentiate failed from surviving finance companies.\u00a0\u00a0 On the other hand, the logistic regression models indicate that failed finance companies had lower profitability, lower foreign borrowing possibly due to their poorer credit rating, lower management quality, and smaller size.\u00a0 These models have relatively high predictive ability for failed finance companies and low expected costs of misclassification.<\/p>\n

Keywords: CAMEL, emerging economies, financial failure, logistic model, Thailand<\/p>\n

Citation (Format 1)
\nPersons, Obeua S., 1999, Using Financial Information to Differentiate Failed vs. Surviving Finance Companies in Thailand: An Implication for Emerging Economies,\u00a0Multinational Finance Journal<\/em>, 3 (2), 127\u2013145.
\nCitation (Format 2)
\nPersons, O. S., 1999. Using Financial Information to Differentiate Failed vs. Surviving Finance Companies in Thailand: An Implication for Emerging Economies. Multinational Finance Journal, 3 (2), 127\u2013145.<\/p>\n","protected":false},"excerpt":{"rendered":"

A Multicriteria Discrimination Method for the Prediction of Financial Distress: The Case of Greece Multinational Finance Journal, 1999, vol. 3, no. 2, pp. 71\u2013101 |\u00a0https:\/\/doi.org\/10.17578\/3-2-1 Michael Doumpos, Technical University of Crete, Greece Constantin Zopounidis, Technical University of Crete, Greece Abstract: Financial distress prediction is an essential issue in finance. Especially in emerging economies, predicting the […]<\/p>\n","protected":false},"author":557,"featured_media":0,"parent":221,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-1467","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages\/1467"}],"collection":[{"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/users\/557"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/comments?post=1467"}],"version-history":[{"count":15,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages\/1467\/revisions"}],"predecessor-version":[{"id":2106,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages\/1467\/revisions\/2106"}],"up":[{"embeddable":true,"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/pages\/221"}],"wp:attachment":[{"href":"https:\/\/sites.uwasa.fi\/mfjuva\/wp-json\/wp\/v2\/media?parent=1467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}