Doomed Firms: An Econometric Analysis of the Path to Failure, 1st Edition (Hardback) book cover

Doomed Firms

An Econometric Analysis of the Path to Failure, 1st Edition

By P.J. Cybinski


250 pages

Purchasing Options:$ = USD
Hardback: 9781138711976
pub: 2017-12-14
SAVE ~$27.00
eBook (VitalSource) : 9781315199351
pub: 2018-12-13
from $65.00

FREE Standard Shipping!


This title was first published in 2003. This book provides a much-needed comprehensive and up-to-date treatise on financial distress modelling. Since many of the challenges facing researchers of financial distress can only be addressed by a totally new research design and modelling methodology, this book concentrates on extending the potential for bankruptcy analysis from single-equation modelling to multi-equation analysis. Essentially, the work provides an innovative new approach by comparing each firm with itself over time rather than testing specific hypotheses or improving predictive and classificatory accuracy. Added to this new design, a whole new methodology - or way of modelling the process - is applied in the form of a family of models of which the traditional single equation logit or MDA models is just a special case. Preliminary two-equation and three-equation models are presented and tested in the final chapters as a taste of things to come. The groundwork for a full treatise on these sorts of multi-equation systems is laid for further study - this family of models could be used as a basis for more specific applications to different industries and to test hypotheses concerning influential variables to bankruptcy risk.


'The evolving economic downturn has sparked renewed interest in bankruptcy analysis among financial researchers. The multi-equation methodology pioneered in this text will likely be the basis of future work in this area. This book is not only timely but innovating and stimulating.' Professor Gordon Karels, University of Nebraska-Lincoln, USA 'We know so little about the things that kill companies. This book provides us with a rigorous analysis of the underlying issues and should be read and reread by those with an interest in the workings of the private sector.' Professor Scott Holmes, The University of Newcastle, Australia, and The University of Queensland, Australia 'Researchers and students of accounting, economics, management and corporate governance. or anyone concerned with the failure of firms should examine Cybinski's work. It contains not only a new methodology for examining failing firms, but suggests that some firms are necessarily 'doomed' in that they are so far gone that little or nothing can be done to save them.' Dr John Forster, Griffith University, Australia 'This is much to commend this new approach which may well be the way forward. The author believes that her work will form the basis of future research. To this end she has provided a great deal of detailed statistics and computer programming work in copious appendices to assist future researchers.' AccountingWeb, January 2004

Table of Contents

Contents: Theoretical Issues: Introduction; Precursors and challenges in the literature; Failure of firms as process: a new modelling methodology. Empirical Issues: Towards a Dynamic Modelling of Financial Distress: The internal environment: the financial ratios; The external environment: the impact of the macroeconomy; Combining the impact of the internal and external factors on financial distress; A dynamic model of financial distress: the path to failure. Discussion and Conclusions: Conclusion. Appendices: Appendix A - Appendix P; Bibliography; Index.

About the Series

Routledge Revivals

Are there elusive titles that you need and have been trying to source for years but thought that you would never be able to find?

Well this may be the end of your quest – here is a fantastic opportunity for you to discover past brilliance and purchase previously out of print and unavailable titles by some of the world’s most eminent academic scholars.

Drawing from over 100 years of innovative, cutting-edge publishing, Routledge Revivals is an exciting programme whereby key titles from the distinguished and extensive backlist of the many acclaimed imprints associated with Routledge will be re-issued.

The programme draws upon the illustrious backlists of Kegan Paul, Trench & Trubner, Routledge & Kegan Paul, Methuen, Allen & Unwin and Routledge itself.

Routledge Revivals spans the whole of the Humanities and Social Sciences, and includes works by some of the world’s greatest thinkers including Emile Durkheim, Max Weber, Simone Weil, Martin Buber, Karl Jaspers and Max Beloff.

If you are interested in Revivals in the Behavioral Sciences, please visit

Learn more…

Subject Categories

BISAC Subject Codes/Headings: