We use a time-dependent Cox regression model with dynamic variables to estimate survival probabilities and make dynamic financial distress predictions for a sample of Australian firms listed on the Australian Securities Exchange from 1989 to 2006. This is one of the first studies to apply...

Dynamic forecasts of financial distress have received far less attention than static forecasts, particularly in Australia. This study, therefore, investigates dynamic probability forecasts for Australian firms. Novel features of the modelling are the use of time-varying variables in forecasts...