Abstract
Current accounting research uses the Zmijewski (1984) and Ohlson (1980) bankruptcy prediction models as proxies for financial distress/bankruptcy. Such use assumes that the models' predictive powers transcend to time periods, industries, and financial conditions outside of those used to originally develop the models. The objective of this paper is to address whether the construct validity of the financial distress/bankruptcy proxies (based on the original models) used in those recent studies is possibly open to question. The evidence provided in this study suggests that researchers who use the Zmijewski and Ohlson models using recent data should re-estimate the models' coefficients to improve the predictive accuracy of the models.
| Original language | English (US) |
|---|---|
| Title of host publication | Advances in Accounting |
| Pages | 77-93 |
| Number of pages | 17 |
| DOIs | |
| State | Published - Dec 1 2003 |
| Externally published | Yes |
Publication series
| Name | Advances in Accounting |
|---|---|
| Volume | 20 |
| ISSN (Print) | 0882-6110 |
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ASJC Scopus subject areas
- Accounting
Cite this
RE-ESTIMATIONS OF THE ZMIJEWSKI AND OHLSON BANKRUPTCY PREDICTION MODELS. / Grice, John Stephen; Dugan, Michael Timothy.
Advances in Accounting. 2003. p. 77-93 (Advances in Accounting; Vol. 20).Research output: Chapter in Book/Report/Conference proceeding › Chapter
}
TY - CHAP
T1 - RE-ESTIMATIONS OF THE ZMIJEWSKI AND OHLSON BANKRUPTCY PREDICTION MODELS
AU - Grice, John Stephen
AU - Dugan, Michael Timothy
PY - 2003/12/1
Y1 - 2003/12/1
N2 - Current accounting research uses the Zmijewski (1984) and Ohlson (1980) bankruptcy prediction models as proxies for financial distress/bankruptcy. Such use assumes that the models' predictive powers transcend to time periods, industries, and financial conditions outside of those used to originally develop the models. The objective of this paper is to address whether the construct validity of the financial distress/bankruptcy proxies (based on the original models) used in those recent studies is possibly open to question. The evidence provided in this study suggests that researchers who use the Zmijewski and Ohlson models using recent data should re-estimate the models' coefficients to improve the predictive accuracy of the models.
AB - Current accounting research uses the Zmijewski (1984) and Ohlson (1980) bankruptcy prediction models as proxies for financial distress/bankruptcy. Such use assumes that the models' predictive powers transcend to time periods, industries, and financial conditions outside of those used to originally develop the models. The objective of this paper is to address whether the construct validity of the financial distress/bankruptcy proxies (based on the original models) used in those recent studies is possibly open to question. The evidence provided in this study suggests that researchers who use the Zmijewski and Ohlson models using recent data should re-estimate the models' coefficients to improve the predictive accuracy of the models.
UR - http://www.scopus.com/inward/record.url?scp=36148998736&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=36148998736&partnerID=8YFLogxK
U2 - 10.1016/S0882-6110(03)20004-3
DO - 10.1016/S0882-6110(03)20004-3
M3 - Chapter
SN - 0762310669
SN - 9780762310661
T3 - Advances in Accounting
SP - 77
EP - 93
BT - Advances in Accounting
ER -