Finance and Financial Management Commons^™

Accounting-Based Variables As An Early Warning Indicator Of Financial Distress In Crisis And Non-Crisis Periods, Robert J. Powell, Dung V. Dinh, Nam T. Vu, Duc H. Vo

Research outputs 2022 to 2026

Financial integration in the Association of Southeast Asian Nations (ASEAN) region is a key focus of the ASEAN Economic Community. Whereas many studies focus on modelling corporate default, this paper identifies early warning indicators of financial distress before a default, using multiple discriminant analysis (MDA) models with a sample of listed and delisted companies in the ASEAN region. The analysis examines 720 companies in 10 different industries across six ASEAN countries from 1997 to 2016. The study constructs individual models for each country as well as an overall model for the entire region, using both in-sample and out-of-sample approaches. This …