Bank Failure: A Multidimensional Scaling Approach

Mar Molinero, Cecilio and Serrano-Cinca, Carlos (2001) Bank Failure: A Multidimensional Scaling Approach. European Journal of Finance, 7 (2). pp. 165-183. ISSN 1351-847X. (The full text of this publication is not available from this repository)

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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
Uncontrolled keywords: Bankruptcy; Prediction; Financial; Ratios; Multidimensional; Scaling; Box; And; Whiskers; Diagrams; Spanish; Banking; System
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > Kent Business School
Depositing User: C. Mar-Molinero
Date Deposited: 03 Sep 2008 18:41
Last Modified: 30 May 2014 10:43
Resource URI: http://kar.kent.ac.uk/id/eprint/9544 (The current URI for this page, for reference purposes)
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