Please use this identifier to cite or link to this item:
Lykke, Morten
Pedersen, Kenneth Juhl
Vinther, Heidi Mølgaard
Year of Publication: 
Series/Report no.: 
Danmarks Nationalbank Working Papers No. 16
This paper presents an accounting-based model developed in Dan-marks Nationalbank to predict failure rates in the Danish corporate sector. The model serves as a tool in analysing the Danish corporate sector in relation to financial stability. The main purpose is to assess the banks' credit risk on the corporate sector. By using logistic regression the model is estimated on 300,000 ac-counts of the Danish corporate sector published in the period from 1995 to 1999. Nine indicators from the accounts, including more qualitative information about the company, are significant in predict-ing the failure rates of Danish companies. Besides the basic model, models at sector level and by number of employees in the company are estimated.
Document Type: 
Working Paper

Files in This Item:
639.33 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.