Please use this identifier to cite or link to this item:
Financial Measures, and the Prediction of Litigation Presence-A Logit Regression Approach
|關鍵字:||Operation Crisis;經營危機;Litigation Risk;Logit Regression;起訴風險;羅吉斯迴歸||出版社:||會計學研究所||摘要:||
Since Enron collapsed in 2001, financial scandals increasing in numbers have not only imposed immense losses on investors and creditors, but also led accounting professions to face greater risks in lawsuit. So as to reduce litigation risks arising from operational failures by enterprises, this study aims to establish a prior alarm system for lawsuit through an application of logit model along with financial measures. Hence, it is expected that with system's assistance both accountants and investors could conscious the potential threats stemming from incompetent corporations at their early stage.
The empirical results show that three-category risk factors such as cash flow from operating, capital application and operation performance are negatively related to litigation presence. However, solvency and accounts receivable collection have a positive relation. It is surprisingly found that short-term capital flow and profitability is not coefficients significant. Accordingly, it can notify if enterprises with improper investment management, poor operation performance, inappropriate capital structure, insufficient working capital and insolvency would potentially bring about operational crisis or even lead to lawsuit.
In addition, the highest classificatory accuracy of the training and test sample is found in the first season which is classified correctly 86 percent and 77 percent respectively. A better warning is evident when the time is getting closed to litigation occurrence. Therefore, the litigation prediction model constructed in this study may provide a helpful assistance in identifying the occurrence of lawsuit.
|Appears in Collections:||會計學系所|
Show full item record
TAIR Related Article
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.