File(s) under permanent embargo
Absence of industry effect in modelling corporate collapse in Australia
journal contributionposted on 2009-03-01, 00:00 authored by Ghassan Hossari
This paper investigates whether or not an industry effect is present when modelling corporate collapse in Australia. The investigation is motivated by a lack of consistency in the literature regarding such an effect. Moreover, this paper makes a unique contribution by applying an innovative methodological approach, called Multi-Level Modelling (MLM), for model derivation. Unlike the traditional two-step methodology used so far in the literature, MLM carries out model derivation and tests for an industry effect in a single step. Finally, the effectiveness of MLM is demonstrated using a sample of Australian publicly listed companies during the period 1989 to 2005; empirical results point to the absence of an industry effect.