Date of Award
8-2015
Degree Type
Thesis
Degree Name
Master of Science (MS)
Department
Economics and Finance
Committee
Not specified
Abstract
Knowing whether or not a company is financial stable has always been a top concern for analysts and money managers. This paper compares the effectiveness of default prediction using two different types of measures: accounting and market based. Accounting measures have been the most popular even though, according to theory, a market based measure reflects all available information. Theory goes as far to say that accounting measures can add no incremental value to a market based measure. In my research I found that accounting based measures can be effective in their predictive power; the market-based measure (BSM) results were much more difficult to estimate within the limits of this research project.
Recommended Citation
Heaps, Jarom, "Assessing the Probability of Bankruptcy" (2015). All Graduate Plan B and other Reports, Spring 1920 to Spring 2023. 763.
https://digitalcommons.usu.edu/gradreports/763
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