Measuring retail company performance using credit scoring techniques

European Journal of Operational Research

Volumn 183, Issue 3, 2007, Pages 1595-1606

  Hu, Yu Chiang ^a   Ansell, Jake ^a  

^a UNIVERSITY OF EDINBURGH   (United Kingdom)

Author keywords

Artificial intelligence; Credit scoring; Finance; Multivariate statistics; Retailing

Indexed keywords

MATHEMATICAL MODELS; NEURAL NETWORKS; OPTIMIZATION; REGRESSION ANALYSIS; RETAIL STORES;

CREDIT SCORING; MULTIVARIATE STATISTICS; RECURSIVE PARTITIONING; RETAIL MARKETS;

COMPETITION;

EID: 34447124447     PISSN: 03772217     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejor.2006.09.101     Document Type: Article

References (43)

1. Altman E.I. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. Journal of Finance 23 4 (1968) 589-609
2. Altman E.I., Haldeman R.C., and Narayanan P. Zeta analysis: A new model to identify bankruptcy risk of corporations. Journal of Banking and Finance 1 1 (1977) 29-54
3. Beaver W.H. Financial ratios as predictors of failure. Journal of Accounting Research 4 3 (1966) 71-111
4. Blum M. Failing company discriminant analysis. Journal of Accounting Research 12 1 (1974) 1-25
5. Bowen R.M., Daley L.A., and Huber Jr. C.C. Evidence on the existence and determinants of inter-industry differences in leverage. Financial Management 11 4 (1982) 10-20
6. Carson J.M., and Hoyt R.E. Life insurer financial distress: classification models and empirical evidence. Journal of Risk and Insurance 62 4 (1995) 764-775
7. Casey C., and Bartczak N. Using operating cash flow data to predict financial distress: some extensions. Journal of Accounting Research 23 1 (1985) 384-401
8. Coats P.K., and Fant L.F. Recognizing financial distress patterns using a neural network tool. Financial Management 22 3 (1993) 142-155
9. Cohen J. A coefficient of agreement for nominal scales. Educational and Psychological Measurement 20 (1960) 37-46
10. Dawson J. Retailing at century end: Some challenges for management and research. International Review of Retail, Distribution and Consumer Research 10 2 (2000) 119-148
11. Deakin E.B. A discriminant analysis of predictors of business failure. Journal of Accounting Research 10 1 (1972) 167-179
12. Deakin E.B. Distributions of financial accounting ratios: Some empirical evidence. Accounting Review 51 1 (1976) 90-96
13. Eisensns R.A. Pitfalls in the application of discriminant analysis in business, finance and economics. Journal of Finance 32 3 (1977) 875-900
14. Fan, A., Palaniswami, M., 2000. Selecting bankruptcy predictors using a support vector machine approach. Paper presented at 2000 IEEE-INNS-ENNS International Joint Conference on Neural Networks.
15. Frydman H., Altman E.l., and Kao D.L. Introducing recursive partitioning for financial classification: The case of financial distress. Journal of Finance 40 1 (1985) 269-291
16. Gentry J.A., Newbold P., and Whitford D.T. Classifying bankrupt firms with funds flow components. Journal of Accounting Research 23 1 (1985) 146-160
17. Gupta M.C., and Huefner R.J. A cluster analysis study of financial ratios and industry characteristics. Journal of Accounting Research. 10 1 (1972) 77-95
18. Hamer M.M. Failure prediction: Sensitivity of classification accuracy to alternative statistical methods and variable sets. Journal of Accounting and Public Policy 2 (1983) 189-307
19. Hand D.J. Construction and Assessment of Classification Rules (1997), John Wiley & Sons Ltd., Chichester, England
20. Hasty R., and Reardon J. Retail Management (1997), McGrew-Hill Companies Inc. Press, New York
21. Hosmer D.W., and Lemeshow S. Applied Logistic Regression (2000), Wiley press, New York
22. Hunt S.D. A General Theory of Competition (2000), Sage Publications Inc., California
23. Hunt S.D., and Arnett D.B. Competition as an evolutionary process and antitrust policy. Journal of Public Policy and Marketing 20 1 (2001) 15-26
24. Hunt S.D., and Morgan R.M. Resource-Advantage theory: A snake swallowing its tail or a general theory of competition?. Journal of Marketing 61 4 (1997) 74-82
25. Knott A.M., and Posen H.E. Is failure good. Strategic Management Journal 26 7 (2005) 617-641
26. Libby R. Accounting ratios and the prediction of failure: Some behavioral evidence. Journal of Accounting Research 13 1 (1975) 150-161
27. Marais M.L., Patell J.M., and Wolfson M.A. The experimental design of classification models: An application of recursive partitioning and bootstrapping to commercial bank loan classifications. Journal of Accounting Research 22 Suppl. (1984) 87-114
28. Mensah Y.M. The differential bankruptcy predictive ability of specific price level adjustments: Some empirical evidence. Accounting Review 58 2 (1983) 228-246
29. Mensah Y.M. An examination of the stationarity of multivariate bankruptcy prediction models: A methodological study. Journal of Accounting Research 22 1 (1984) 380-395
30. Moody's Investors Service Inc. Rating Methodology: Industrial Company Rating Methodology (1998), Moody's Investors Service Inc. Press, New York. http://www.moodys.com/ Downloadable from website
31. Moore A.W. Cross-validation for detecting and preventing overfitting (2001), Carnegie Mellon University. http://www.cs.cmu.edu/~awm/381/2004/crossvalidation.pdf Downloadable from website
32. Ohlson J.A. Financial ratios and the probabilistic prediction of bankruptcy. Journal of Accounting Research 18 1 (1980) 109-131
33. Platt H.D., and Platt M.B. Development of a class of stable predictive variables. Journal of Business Finance & Accounting 17 1 (1990) 31-51
34. Platt J.C. Fast training of support vector machines using sequential minimal optimization. In: Schölkopf B., Burges C.J.C., and Smola A.J. (Eds). Advances in Kernel Methods: Support Vector Machines (1999), MIT press, Cambridge, England
35. Rose P.S., Andrews W.T., and Giroux G.A. Predicting business failure: A macroeconomic perspective. Journal of Accounting, Auditing & Finance 6 1 (1982) 20-31
36. Sanger G.C., and McConnell J.J. Stock exchange listings, firm value, and security market efficiency: The impact of NASDAQ. The Journal of Financial and Quantitative Analysis 21 1 (1986) 1-25
37. Standard and Poor's. Standard and Poor's 2003 Corporate Rating Criteria (2003), The McGraw-Hill Companies press, New York. http://www.standardandpoors.com/ Downloadable from website
38. Taffler R.J. Empirical models for the monitoring of UK corporations. Journal of Banking and Finance 8 2 (1984) 199-227
39. Tam K.Y., and Kiang M.Y. Managerial applications of neural networks: The case of bank failure predictions. Management Science 38 7 (1992) 926-947
40. Thomas L.C., Edelman D.B., and Crook J.N. Credit Scoring and Its Applications (2002), Society for Industrial and Applied Mathematics, Philadelphia, PA.
41. Trigueiros D., and Taffler R. Neural networks and empirical research in accounting. Accounting & Business Research 26 4 (1996) 347-355
42. Williams W.H., and Goodman M.L. A statistical grouping of corporations by their financial characteristics. Journal of Financial and Quantitative Analysis. 6 4 (1971) 1095-1104
43. Zhang G.P., Hu M.Y., Patuwo B.E., and Indro D.C. Artificial neural networks in bankruptcy prediction: General framework and cross-validation analysis. European Journal of Operational Research 116 1 (1999) 16-32