TY  - JOUR
TI  - ANALYSIS OF THE FACTORS WHICH AFFECT FINANCIAL FAILURE AND BANKRUPTCY WITH GENERALIZED ORDERED LOGIT MODEL
AB  - In the present study, financial ratios that belong to 139 manufacturing companies that have been quoted on BIST (Istanbul Stock Exchange) during 2017 have been used, the factors that lead to financial failure and bankruptcy have been determined with the generalized ordered logit model. By courtesy of the Altman-Z score model, ordinal levels of the dependent variable have been scaled. Thus, a model that could warn companies like an early warning system and forecast potential financial failure have been suggested. Independent variables have been obtained from the financial ratios which had been taken from the financial statements of the companies. As the estimated ordered logit model has violated the parallel lines assumption, by taking the ordinal nature of the variable dependent into account it has been analyzed with a generalized ordered logit model which relaxes the parallel lines assumption and has been interpreted according to the marginal effects of the model. According to analysis results, an increase in ratios of operating profit margin, asset turnover, net profit margin, and acid-test increases the probability of the company being in a safe zone. Meanwhile, an increase in the financial leverage ratio decreases that probability.
AU  - SEHRIBANOGLU, Sanem
AU  - VAN, MUHAMMED HANIFI
AU  - Van, Münevver Günay
DO  - 10.17130/ijmeb.803957
PY  - 2021
JO  - Uluslararası Yönetim İktisat ve İşletme Dergisi
VL  - 17
IS  - 1
SN  - 2147-9208
SP  - 63
EP  - 78
DB  - TRDizin
UR  - http://search/yayin/detay/437196
ER  -