Abstract
In this paper the multicriteria method ELECTRE TRI is employed to make the discrimination between failed and healthy firms in Greece. An appropriate model was built according to the financial knowledge and past experience. A sample of 30 bankrupt firms matched to a sample of 30 healthy firms is used to evaluate the capability of the method for the prediction of business failure. The results are compared to those derived by a discriminant analysis model. The results using ELECTRE TRI promise satisfactory applications in the domain of financial distress.
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Zopounidis, C., Dimitras, A.I., Le Rudulier, L. (1998). A Multicriteria Approach for the Analysis and Prediction of Business Failure in Greece. In: Zopounidis, C. (eds) Operational Tools in the Management of Financial Risks. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5495-0_7
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DOI: https://doi.org/10.1007/978-1-4615-5495-0_7
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