An events approach to investigating business failure is presented in this study. The study identifies events in the bankruptcy process that characterize restaurant companies that have filed for bankruptcy under Chapter 11. Based on a sample of 12 matched bankrupt and non-bankrupt companies, events that were unique to the bankrupt companies were: net losses, management turnover, loan default, credit accommodation, royalty default, decline in unit sales, and renegotiation of franchise contract.
AltmanE. I.(1968).Financial ratios, discriminant analysis and the prediction of corporate bankruptcy.Journal of Finance,23(4), 589–607
2.
AltmanE.I.HaldemanG.NarayananP.(1977).Zeta analysis: A new model to identify bankruptcy risk of corporations.Journal of Banking and Finance,1(1), 29–54
3.
ArgentiJohn(1976).Corporate collapse: The causes and symptoms.New York: Halstead Press
4.
BeaverW. G.(1966).Financial ratios as predictors of failure.Empirical Research in Accounting: Selected Studies.Chicago: University of Chicago Press
5.
BoothP.(1983).Decomposition measures and the prediction of financial failure.Journal of Business, Finance and Accounting,10(1), 67–82
6.
BoothP.HutchinsonP.(1989).Distinguishing between failing and growing firms: A note on the use of decomposition measure analysis.Journal of Business, Finance and Accounting,16(2), 267–271
7.
BlumM.(1974).Failing company discriminant analysis.Journal of Accounting Research,12(1), 1–25
8.
EdmisterR. Q.(1972).An empirical test of financial ratio analysis for small business failure prediction.Journal of Financial and Quantitative Analysis,7(2), 1477–1493
9.
GahlonJ. M.VigelandR. L.(1988).Early warning signs of bankruptcy using cash flow analysis.Journal of Commercial Bank Lending,71(4), 4–15
10.
GirouxG. A.WigginsC. E.(1984).An events approach to corporate bankruptcy.Journal of Bank Research,15(3), 179–187
11.
HamerJ. G.(1985).Troubled debt restructuring: An alternative to bankruptcy.Ann Arbor, MI: UMI Research Press
12.
NortonC. L.SmithE.(1979).A comparison of general price level and historical cost financial statements in the prediction of bankruptcy.Accounting Review,54(1), 72–87
13.
OhlsonJ. A.(1980).Financial ratios and probabilistic prediction of bankruptcy.Journal of Accounting Research,18(1), 109–131
14.
QueenM.RollR.(1987).Firm mortality: Using market Indicators to predict survival.Financial Analysts Journal,43(3), 9–26
15.
TavlinE. M.MoncarzE.DumontD.(1989).Financial failure in the hospitality industry.FIU Review,7(1), 55–75