Bankruptcy Prediction in the Construction Industry: Financial Ratio Analysis
GEORGIA INST OF TECH ATLANTA SCHOOL OF CIVIL ENGINEERING
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This paper will review the existing bankruptcy prediction models which utilize financial ratios. The most notable models by William H. Beaver and Edward I. Altman will be examined closely. These mathematical models were developed from financial data of manufacturing vise construction firms. A method of analysis will be developed for distinguishing the significant differences in financial reporting between the two industries. Using this information an effort will be made to modifying the models that can be applicable to the construction industry. Keywords Analysis of variance, Computations.
- Economics and Cost Analysis