Graphics Reference
In-Depth Information
Description of the Data
3.2
here are
records in the dataset. Each record contains financial information
for a company for one year. Table
.
gives a list of the variables in the dataset.
For each company there are
ratios, one size variable (log transform of assets),
and a binary variable, which records whether or not the company went bankrupt
within three years of the financial returns. here is also information on the State in
which the company is registered, the industry sector to which it belongs, and the
year of the accounts. he term “bankruptcy” includes Chapter
reorganization as
well as liquidation under Chapter
of the US Bankruptcy Code. Financial ratios are
commonly used so that data are comparable across years. Sometimes it is helpful
to look at the raw data as well, particularly if there are data cleaning issues. An un-
usual value or a cluster of unusual values in Total Assets would affect all twelve ratios
that depend on this variable. here were no missing values. Some of the ratio vari-
ablescanbegroupedintocategories:profitmeasures(Ebit.TA,NI.TA);leverageratios
(Kap.TA, TL.TA,andEq.TA); liquidity ratios (Cash.TA, CA.TA and CA.CL.TA); and
activity/turnover ratios (Inv.TA, S.TA,andEbit.Int).
In order to be able to generalize results from statistical models, the dataset be-
ing analyzed must be a random sample from the population under study. For the
bankruptcy dataset, there are a very large number of cases, but it is not clear whether
they comprise a random sample. Apart from anything else, it is not at all clear that
they can be considered to be homogeneous. Most companies are rather small and
Table
.
.
Variables in the Bankruptcy dataset
Variable
Description
Cash.TA
Cash/Total Assets
Inv.TA
Inventories/Total Assets
CA.TA
Current Assets/Total Assets
Kap.TA
Property, Plant and Equipment/Total Assets
Intg.TA
Intangibles/Total Assets
LogTA
log(Total Assets)
CL.TA
Current Liabilities/Total Assets
TL.TA
Total Liabilities/Total Assets
Eq.TA
Equity/Total Assets
S.TA
Sales/Total Assets
Ebit.TA
EBIT/Total Assets
Ebit.Int
EBIT/Interest Payments
NI.TA
Net Income/Total Assets
CA.CL.TA
(Current Assets-CurrentLiabilities)/Total Assets
BANKR
status (Bankrupt or OK)
Year
Year of accounts
State
Where the company was registered
NAICS
North American Industry Classification System
