Abstract
The core of our proposal is the determination of a “matrix of symptoms”, based on grey systems theory. The symptoms of a firm can be represented by economic-financial ratios, usually used by analysts to make predictions and suggestions. The ability to create such a matrix of symptoms implies that given level of symptom’s intensity, we can determinate if the analyzed firm presents some “diseases”. By diseases we understand the causes which generate anomalies at the firm. With the utilization of such a matrix, the activity of the analyst can be really improved.
This work was supported in part by the European Structural Founds under project nr. 7832, “Doctoral Research and PhD students in Education-Research-Innovation, DOC-ECI”.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Altman, E.I.: Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance 23(4), 589–609 (1968)
Altman, E.I., Halderman, R.G., Narayanan, P.: ZETA analysis: a new model to identify bankruptcy risk of corporations. Journal of Banking and Finance 1(1), 29–51 (1977)
Balcaen, S., Ooghe, H.: 35 years of studies on business failure: an overview of the classic statistical methodologies and their related problems. The British Accounting Review 38, 63–93 (2006)
Beaver, W.H.: Financial ratios predictors of failure. Empirical research in accounting: selected studies 1966. Journal of Accounting Research 4(suppl.), 71–111 (1967)
Deakin, E.: A discriminant analysis of predictions of business failure. Journal of Accounting Research 10(1), 167–179 (1972)
Edminster, R.: An empirical test of financial ratio analysis for small business failure prediction. Journal of Financial and Quantitative Analysis, 1477–1493 (1972)
FitzPatrick, P.J.: A comparison of ratios of successful industrial enterprises with those of failed firms. Certified Public Accountant 12, 598 – 605, 656 – 662, and 727 – 731 (1932)
Li, G.D., Yamaguchi, D., Nagai, M.: A Grey-based approach to suppliers selection problem. LNCS. Springer, Berlin (2006)
Mervin, C.L.: Financing small corporations in five manufacturing industries, 1926 – 36. National Bureau of Economic Research (1942)
Moses, D., Liao, S.S.: On developing models for failure prediction. Journal of Commercial Bank Lending 69, 27–38 (1987)
Siegel, P.H., Korvin, A.D., Omer, K.: Application of fuzzy sets and the theory of evidence to accounting. Jai Press Inc. (1995)
Liu, S.F., Lin, Y.: Grey Information: Theory and Practical Applications. Springer, London (2005)
Taffler, R.J.: Forecasting company failure in the UK using discriminant analysis and financial ratio data. Journal of the Royal Statistical Society 145, 342–358 (part 3) (1982)
Tamari, M.: Financial ratios as a means of forecasting bankruptcy. Management International Review 4, 15–21 (1966)
Vigier, H.P., Terceno, A.: A model for prediction of “diseases” of firms by means of fuzzy relations. Fuzzy Sets and Systems 159, 2299–2316 (2008)
Wilson, R.L., Sharda, R.: Bankruptcy prediction using neural networks. Decision Support Systems 11, 545–557 (1994)
Winakor, A., Smith, R.F.: Changes in financial structure of unsuccessful industrial companies. Bureau of Business Research Bulletin No. 51 (1935)
Xia, J.: Grey System Theory Applied to Hydrology. Huazhong University of Science and Technology Press, Wuhan (2000)
Zadeh, L.A.: Fuzzy sets. Information and Control 9, 338–353 (1965)
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Delcea, C., Scarlat, E. (2010). The Diagnosis of Firm’s “Diseases” Using the Grey Systems Theory Methods. In: Liu, S., Forrest, J.YL. (eds) Advances in Grey Systems Research. Understanding Complex Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-13938-3_10
Download citation
DOI: https://doi.org/10.1007/978-3-642-13938-3_10
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-13937-6
Online ISBN: 978-3-642-13938-3
eBook Packages: Physics and AstronomyPhysics and Astronomy (R0)