BANK FAILURE PREDICTION MODELS FOR THE DEVELOPING AND DEVELOPED COUNTRIES: IDENTIFYING THE ECONOMIC VALUE ADDED FOR PREDICTING FAILURE
Journal Title: Asian Economic and Financial Review - Year 2016, Vol 6, Issue 9
Abstract
This study used data from 2003-2013, and used a logistic model to analyze the factors that influence financial early warning systems in developing and developed countries. We employed a bank capital adequacy ratio less than 8%, Tier I capital ratio less than 4%, and nonperforming loan ratio more than one third to measure bank failure and identify the financial ratio that most accurately predicts bank failure. The results indicate that the economic value added index is more effective than other indexes in predicting bank failure in NAFTA, ASEAN, EU, NIC, and G20 nations.
Authors and Affiliations
Yi-Shu Wang| School of Business, Changzhou University, Changzhou City, Jiangsu Providence, China, Xue Jiang| School of Business, Changzhou University, Changzhou City, Jiangsu Providence, China, Zhen-Jia-Liu*| School of Business, Changzhou University, Changzhou City, Jiangsu Providence, China
Keywords
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