A multivariate analysis of bank failure in Spain
A multivariate analysis of bank failure in Spain
Mathematical models for the prediction of company failure are by now well established. Most of the work on multivariate modelling of distress prediction attempts to obtain a score that gives the failure probability of a company. A data set of 66 Spanish banks, 29 of which failed, is used to show that multidimensional scaling (MDS) techniques can be of use to produce simple tools for the analysis of financial health. MDS has the advantage of producing pictorial representations that are easy to interpret and use. This is done without loss of statistical rigour given the very close links between MDS and other multivariate statistical techniques that are normally used in the analysis of failure. As an example, the technique is used to trace the financial path of an ailing bank.
bankruptcy, prediction, financial, ratios, multidimensional, scaling, box, whiskers, diagrams, spanish, banking, system
165-183
Mar-Molinero, C.
b7ac51bd-2313-4519-9e4d-bd4d2362b8b9
Serrano-Cinca, C.
855a2e90-4b11-4b64-8579-9651f40f4a88
2001
Mar-Molinero, C.
b7ac51bd-2313-4519-9e4d-bd4d2362b8b9
Serrano-Cinca, C.
855a2e90-4b11-4b64-8579-9651f40f4a88
Mar-Molinero, C. and Serrano-Cinca, C.
(2001)
A multivariate analysis of bank failure in Spain.
European Journal of Finance, 7 (2), .
(doi:10.1080/13518470122202).
Abstract
Mathematical models for the prediction of company failure are by now well established. Most of the work on multivariate modelling of distress prediction attempts to obtain a score that gives the failure probability of a company. A data set of 66 Spanish banks, 29 of which failed, is used to show that multidimensional scaling (MDS) techniques can be of use to produce simple tools for the analysis of financial health. MDS has the advantage of producing pictorial representations that are easy to interpret and use. This is done without loss of statistical rigour given the very close links between MDS and other multivariate statistical techniques that are normally used in the analysis of failure. As an example, the technique is used to trace the financial path of an ailing bank.
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Published date: 2001
Keywords:
bankruptcy, prediction, financial, ratios, multidimensional, scaling, box, whiskers, diagrams, spanish, banking, system
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Local EPrints ID: 35726
URI: http://eprints.soton.ac.uk/id/eprint/35726
ISSN: 1351-847X
PURE UUID: b28c5873-a292-46f4-b22b-8761959c6456
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Date deposited: 22 May 2006
Last modified: 15 Mar 2024 07:54
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Author:
C. Mar-Molinero
Author:
C. Serrano-Cinca
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