USING KIDA MODEL IN PREDICTING FINANCIAL  FAILURE IN EGYPTIAN FIRMS

Elsayed, Nehad; Alasmar, Sara; Ebrahim, Rofida; Keedis, Mira; Mansour, Hager

مجلة البحوث في العلوم المالية والمحاسبية
Volume 8, Numéro 1, Pages 696-711
2023-06-30

Using Kida Model In Predicting Financial Failure In Egyptian Firms

Authors : Elsayed Nehad . Alasmar Sara . Ebrahim Rofida . Keedis Mira . Mansour Hager .

Abstract

Understanding the financial failure of firms is a vital accounting research endeavor. Because of the critical importance of financial failure to managers' decision-making, investors, shareholders, and others, many studies examined several developed models for predicting financial failure using Linear multiple discriminant approaches (LMDA), logistic regression, artificial intelligence approaches, and data mining techniques (neural network (NN), genetic algorithm (GA), expert systems (ESs), and support vector machines (SVMs). In Egypt, there doesn't seem to be much similar work. This study aims to close this knowledge gap, especially after many financial consequences, including financial failure, have been experienced by a number of Egyptian-listed firms in recent years despite government and professional initiatives to reduce financial failure in Egypt. The current study uses the Kida model for predicting financial failure in Egyptian firms. According to the findings, the Kida model is deemed adequate for predicting Egyptian firms' financial failure, which was negative for most study years/firms.