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Bank Failure: A Multidimensional Scaling Approach

Mar Molinero, Cecilio, Serrano-Cinca, Carlos (2001) Bank Failure: A Multidimensional Scaling Approach. European Journal of Finance, 7 (2). pp. 165-183. ISSN 1351-847X. (doi:10.1080/13518470122202) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:9544)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided.
Official URL:
http://dx.doi.org/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.

Item Type: Article
DOI/Identification number: 10.1080/13518470122202
Uncontrolled keywords: Bankruptcy; Prediction; Financial; Ratios; Multidimensional; Scaling; Box; And; Whiskers; Diagrams; Spanish; Banking; System
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Kent Business School (do not use)
Depositing User: Cecilio Mar Molinero
Date Deposited: 03 Sep 2008 18:41 UTC
Last Modified: 16 Nov 2021 09:48 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/9544 (The current URI for this page, for reference purposes)

University of Kent Author Information

Mar Molinero, Cecilio.

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