Purpose The purpose of this paper is to identify a subset of key financial ratios and factors that provide the best discriminating power to distinguish between creditworthy companies (CWCs) and less creditworthy companies (LCWCs) in the USA with the proposed method. Design/methodology/approach A...

Purpose The authors develop a framework to build an early warning mechanism in detecting financial deterioration of Chinese companies. Many studies in the financial distress and bankruptcy prediction literature rarely do they examine the impact of pre-processing financial indicators on the...