Highbred versus hybrid: Combined accounting-based, market-based and governance-based information

• Main Authors: Jian-wen Chen, 陳建文
• Other Authors: Ming-Yuan Leon Li
• Format: Others
• Language: en_US
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/61856166780030861243

碩士 === 國立成功大學 === 財務金融研究所 === 97 === This study examines whether the bankruptcy prediction performance of a hybrid model is better than that of various highbred models. The empirical data include firms which were listed on the Taiwan stock market from January 1998 to December 2008. The major findings could be summarized as follows. First, loan institutions should not overemphasize one source of risk factor information, as this will bias decision-making due to the neglect of other important variables. We show that in general the hybrid model has better bankruptcy prediction performance than the highbred models in this study. Second, compared with the setting of constant loadings, the bankruptcy prediction performance of the hybrid model with dynamic loadings achieve better results in most cases.