Title: Classification and Discrimination Techniques Applied to the Early Detection of Business Failure
Abstract: Early detection of failing companies, usually based on linear discriminant analysis, does not take into account the specificities of some sub-groups of firms whose economical characteristics are important in the business failure process. Ascending hierarchical classification is well adapted to quantitative data with a high level of dispersion to build partitions corresponding to economical business typologies. We discriminate using two methods taking into account these partitions: first, the nearest cluster method and second, linear discriminant analysis applied to each partition group. We then compare the results of these methods with the linear discriminant analysis applied to the whole sample.
Publication Year: 1994
Publication Date: 1994-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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