Financial Failure Prediction in Banks: The Case of European Union Countries

Financial Failure Prediction in Banks: The Case of European Union Countries

Financial crisis in 2007, affecting the whole world, revealed the significance of early prediction of distressed banks and companies, and subsequently research on financial distress prediction in the banking sector accelerated considerably. This study estimates the financial failure of banks and...

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Bibliographic Details
Main Author: Zeynep TÜRKCAN
Format: Article
Language:English
Published: Isarder 2018-06-01
Series:İşletme Araştırmaları Dergisi
Subjects:
Financial Distress
EU
Financial Ratios
Macro-economic Indicators
Panel Logit Model
Online Access:https://isarder.org/2018/vol.10_issue.2_article30_full_text.pdf
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spelling doaj-d23fd6418fbe4d678b513d852790b7f12020-11-25T00:30:26ZengIsarderİşletme Araştırmaları Dergisi1309-07121309-07122018-06-0110255456910.20491/isarder.2018.444Financial Failure Prediction in Banks: The Case of European Union CountriesZeynep TÜRKCAN Financial crisis in 2007, affecting the whole world, revealed the significance of early prediction of distressed banks and companies, and subsequently research on financial distress prediction in the banking sector accelerated considerably. This study estimates the financial failure of banks and looks at the factors related to bank failure using a five-stage empirical model based on panel data for the 1990-2010 period, for banks operating in 27 European Union (EU) countries. Using a panel logit model to determine which of the independent variables led to the bank failure, it is observed that “Non-interest Income to Total Income” is the best predictor. https://isarder.org/2018/vol.10_issue.2_article30_full_text.pdfFinancial DistressEUFinancial RatiosMacro-economic IndicatorsPanel Logit Model
collection DOAJ
language English
format Article
sources DOAJ
author Zeynep TÜRKCAN
spellingShingle Zeynep TÜRKCAN
Financial Failure Prediction in Banks: The Case of European Union Countries
İşletme Araştırmaları Dergisi
Financial Distress
EU
Financial Ratios
Macro-economic Indicators
Panel Logit Model
author_facet Zeynep TÜRKCAN
author_sort Zeynep TÜRKCAN
title Financial Failure Prediction in Banks: The Case of European Union Countries
title_short Financial Failure Prediction in Banks: The Case of European Union Countries
title_full Financial Failure Prediction in Banks: The Case of European Union Countries
title_fullStr Financial Failure Prediction in Banks: The Case of European Union Countries
title_full_unstemmed Financial Failure Prediction in Banks: The Case of European Union Countries
title_sort financial failure prediction in banks: the case of european union countries
publisher Isarder
series İşletme Araştırmaları Dergisi
issn 1309-0712
1309-0712
publishDate 2018-06-01
description Financial crisis in 2007, affecting the whole world, revealed the significance of early prediction of distressed banks and companies, and subsequently research on financial distress prediction in the banking sector accelerated considerably. This study estimates the financial failure of banks and looks at the factors related to bank failure using a five-stage empirical model based on panel data for the 1990-2010 period, for banks operating in 27 European Union (EU) countries. Using a panel logit model to determine which of the independent variables led to the bank failure, it is observed that “Non-interest Income to Total Income” is the best predictor.
topic Financial Distress
EU
Financial Ratios
Macro-economic Indicators
Panel Logit Model
url https://isarder.org/2018/vol.10_issue.2_article30_full_text.pdf
work_keys_str_mv AT zeynepturkcan financialfailurepredictioninbanksthecaseofeuropeanunioncountries
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