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Nonstatistical Factors Influencing Predictions Of Financial Distress And Managerial Implications In The All-Cargo Airline Industry, Robert O. Walton

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All-cargo airlines carry over 50% of global airfreight, yet they are prone to bankruptcy. Many financial models are designed to predict a firms' financial health, but they do not assess many nonstatistical factors that influence the prediction capability of these models. In this study, qualitative grounded theory design was used to identify nonstatistical factors and explore how they influence bankruptcy prediction models in the all-cargo airline industry. In the first phase of the study, financial data from 2005 to 2009 for 17 all-cargo U.S. airlines were used to determine the bankruptcy prediction ability of the Kroeze financial bankruptcy model. A …