Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction
Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction

Author(s): Lubor Homolka, Jiří Doležal, Petr Novák
Subject(s): Business Economy / Management, Economic policy, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: longitudinal design; GLMM; bankruptcy;
Summary/Abstract: Financial distress modelling used for loan-approval decision making has received a lot of attention from both practitioners in commercial banks and academics over the last decades. Several modelling techniques accepted by both sides have emerged from the literature review. Surprisingly, such models are usually developed on cross-sectional data with lagged variables. This study extends traditional cross-sectional framework by employing longitudinal design in connection with generalised linear mixed models (logistic regression).

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