An Examination Of The Potential Impact Of Risk On Viability Assessments For Financially Distressed Firms: The Case Of Professional User Groups Of Company Accounts
Risky conditions in conjunction with individuals' attitude to risk would normally lead to risk-averse behavior (Fishbein & Ajzen, 1975; Ajzen & Fishbein, 1980). In this research, risk-averse behavior (the dependent variable) relates to the "going-concern" opinion of financiall...
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| Format: | Article |
| Language: | English |
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Asian Academy of Management (AAM),
2007.
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| Online Access: | Get fulltext |
| Summary: | Risky conditions in conjunction with individuals' attitude to risk would normally lead to risk-averse behavior (Fishbein & Ajzen, 1975; Ajzen & Fishbein, 1980). In this research, risk-averse behavior (the dependent variable) relates to the "going-concern" opinion of financially distressed firms. A logistic regression model used as predictors of risk measurements (risky conditions and risk attitude) correctly predicts 97.6% of the nongoing concern opinions. In conclusion, the empirical evidence demonstrates a subtle impact of risk on individuals' behavior despite the fact that distinct statistical tests do not fully support this. |
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