Back to Search
Start Over
Financial Distress Prediction of Cooperative Financial Institutions—Evidence for Taiwan Credit Unions.
- Source :
- International Journal of Financial Studies; Jun2022, Vol. 10 Issue 2, p30-30, 25p
- Publication Year :
- 2022
-
Abstract
- In response to relatively little evidence on the determinants of the financial distress in cooperative financial institutions (e.g., Credit Unions), this paper proposes a distress indicator of Merton Distance to default (Merton DD), which was constructed with a z-score, possessed improved predictive capability, but reducing equity volatility. This model possesses the advantages of both hazard and modified Merton DD model, which could timely reflect market volatility and predict when distress would occur. As a demonstration, we applied this model to forecast the financial distress of credit unions in Taiwan. The results can provide more information to researchers. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 22277072
- Volume :
- 10
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- International Journal of Financial Studies
- Publication Type :
- Academic Journal
- Accession number :
- 157748959
- Full Text :
- https://doi.org/10.3390/ijfs10020030