25 December, 2014 14:20

25 Dec

Scopus – Document details

Skip Main Navigation Links Jump to Footer

Select to go to the Scopus main search page

Content

Back to results | < Previous 2 of 11 Next >

Review of Pacific Basin Financial Markets and Policies

Volume 17, Issue 2, June 2014, Article number 1450012

The determinants of bankruptcy for chinese firms (Article)

Ni, J.a, Kwak, W.b, Cheng, X.b, Gong, G.c

a Department of Economics, University of Nebraska at Omaha, Omaha, NE 68182, United States
b Department of Accounting, College of Business Administration, University of Nebraska at Omaha, Omaha, NE 68182, United States
c School of Economics, Shanghai University of Finance and Economics, Shanghai, China

View references (16)

Abstract

The global financial crisis in 2008 increased the number of business failures in the U.S. as well as in China. The Chinese economy has also been affected by the recent global financial crisis given the fact that the Chinese economy depends heavily on international trade. Our study tries to find the determinants of bankruptcy in Chinese firms. Both logit and survival model analyses provide consistent results on the determinants in predicting distressed firms in China. Our results suggest that firms with liquidity problems and firms experiencing a decline in profits are more likely to file for bankruptcy. In addition, we find that, compared to state-owned enterprises (SOEs), collectively-owned enterprises, private-owned enterprises, and foreign-owned businesses are more likely to file for bankruptcy. This conclusion is robust after controlling for regional differences. The findings of this study show that the financial variables developed by Altman [Financial ratios, discriminant analysis
and the prediction of corporate bankruptcy. Journal of Finance, 23(3),
589-609] and Ohlson [Financial ratios and probabilistic prediction of
bankruptcy. Journal of Accounting Research, 18(1), 109-131] perform reasonably well in determining business failures of Chinese firms even though SOEs and shadow financing exist in China. © 2014 World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research.

Author keywords

bankruptcy; China; logit analysis; survival model

Indexed keywords

GEOBASE Subject Index: banking; economic conditions; financial crisis; international trade; logit analysis; prediction; state owned enterprise

Regional Index: China; United States

ISSN: 02190915Source Type: Journal Original language: English
DOI: 10.1142/S021909151450012XDocument Type: Article
Publisher: World Scientific Publishing Co. Pte Ltd

View in search results format

References (16)

1
Banker, R.D., Charnes, A., Cooper, W.W.

SOME MODELS FOR ESTIMATING TECHNICAL AND SCALE INEFFICIENCIES IN DATA ENVELOPMENT ANALYSIS.
(1984) Management Science, 30 (9), pp. 1078-1092. Cited 4045 times.

2
Charnes, A., Cooper, W.W., Rhodes, E.

Measuring the efficiency of decision making units
(1978) European Journal of Operational Research, 2 (6), pp. 429-444. Cited 7416 times.
doi: 10.1016/0377-2217(78)90138-8

3
Farrell, M.J.

(1957) Journal of the Royal Statistical Society, 120, pp. 253-290. Cited 3951 times.

4
Gill, A., Biger, N., Mathur, N.

(2010) Business and Economics Journal, 2010, pp. 1-9. Cited 17 times.

5
Hung, C.Y., Kao, L.H.

(2011) Management Review, (30), pp. 49-72.
in Chinese

6
Lazaridis, I., Tryfonidis, D.

(2006) Journal of Financial Management and Analysis, 19, pp. 26-35. Cited 49 times.

7
Lee, C.-F., Wang, K., Peng, Y.-H.

Cost structure and efficiency of the credit departments of the farmers’ associations in Taiwan
(2006) Review of Pacific Basin Financial Markets and Policies, 9 (3), pp. 385-403. Cited 2 times.
doi: 10.1142/S021909150600077X

8
Liao, C.-H., González, D.B.

Comparing operational efficiency of mobile operators in Brazil, Russia, India and China
(2009) China and World Economy, 17 (5), pp. 104-120. Cited 3 times.
doi: 10.1111/j.1749-124X.2009.01169.x

9
Lin, J.R., Hsu, C.S., Lee, C.L.

(2002) Taipei Economic Inquiry, 38, pp. 203-244. Cited 3 times.
in Chinese

10
Michalski, G.

(2003) Wroclaw University of Economics
Working Paper

11
Padachi, K.

(2006) International Review of Business Research Papers, 2, pp. 45-58. Cited 36 times.

12
Palia, D., Sopranzetti, B.J.

Securitizing accounts receivable
(2004) Review of Quantitative Finance and Accounting, 22 (1), pp. 29-38. Cited 2 times.
doi: 10.1023/B:REQU.0000006185.39802.83

13
Schive, C.

(1998) Review of Pacific Basin Financial Markets and Policies, 1, pp. 99-116.

14
Tobin, J.

(1958) Econometrica, 26, pp. 24-36. Cited 1410 times.

15
Tsai, H.-C., Chen, C.-M., Tzeng, G.-H.

The comparative productivity efficiency for global telecoms
(2006) International Journal of Production Economics, 103 (2), pp. 509-526. Cited 37 times.
doi: 10.1016/j.ijpe.2005.11.001

16
Yang, J.B., Wong, B.Y.H., Xu, D.L., Liu, X.B., Steuer, R.E.

Integrated bank performance assessment and management planning using hybrid minimax reference point – DEA approach
(2010) European Journal of Operational Research, 207 (3), pp. 1506-1518. Cited 8 times.
doi: 10.1016/j.ejor.2010.07.001

© Copyright 2014 Elsevier B.V., All rights reserved.

Cited by 0 documents

Inform me when this document is cited in Scopus:
Set citation alert | Set citation feed

Related documents

Governance-performance relationship: A re-examination using technical efficiency measures
Bozec, R. , Dia, M. , Bozec, Y.
(2010) British Journal of Management
Efficiency analysis on bus companies in Seoul city using a network DEA model
Hahn, J.-S. , Kim, D.-K. , Kim, H.-C.
(2013) KSCE Journal of Civil Engineering
Evaluating Top Services-Prepackaged Software Firms in Standard and Poor’s 500 Index by Using a Multiple Objective Programming Based Data Envelopment Analysis
Huang, C.-Y. , Wang, P.-Y. , Tzeng, G.-H.
(2012) Smart Innovation, Systems and Technologies

View all related documents based on references

Find more related documents in Scopus based on: Authors

| Keywords

Mendeley Readership Statistics

0 people have saved this article to Mendeley

Save to Mendeley

smicon.png

Back to results | < Previous 2 of 11 Next >

Top of page

Footer

  • Elsevier homepage (opens in a new window)

Copyright © 2014 Elsevier B.V. All rights reserved.Scopus® is a registered trademark of Elsevier B.V.
Cookies are set by this site. To decline them or learn more, visit our Cookies page.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: