3. Literature Review
Bankruptcy prediction has long attracted the interest of researchers. The difficulty calculating
the results of insolvency prediction models is one of the reasons these models have not
gained greater use. With the technology development the use of bankruptcy prediction
models has become practical and accessible for everyone. The difficulty collecting data on
the corresponding sets of failed and successful enterprises constitutes one of the main
problems in developing and testing bankruptcy forecasting models.
Over the past 50 years, a plethora of studies have used a great variety of bankruptcy
prediction models to investigate the failures of individual firms (Youn and Gu, 2010;
Bellovary et al., 2007). Among the vast number of studies that have assessed bankruptcy
since 1965, very few of them were applied to hospitality firms (lodging and restaurant) (Gu
and Gao, 2000; Gu, 2002; Kim, H., Gu, Z., 2006). Some of the most recent studies of lodging
business failure prediction are:
3. Literature ReviewBankruptcy prediction has long attracted the interest of researchers. The difficulty calculatingthe results of insolvency prediction models is one of the reasons these models have notgained greater use. With the technology development the use of bankruptcy predictionmodels has become practical and accessible for everyone. The difficulty collecting data onthe corresponding sets of failed and successful enterprises constitutes one of the mainproblems in developing and testing bankruptcy forecasting models.Over the past 50 years, a plethora of studies have used a great variety of bankruptcyprediction models to investigate the failures of individual firms (Youn and Gu, 2010;Bellovary et al., 2007). Among the vast number of studies that have assessed bankruptcysince 1965, very few of them were applied to hospitality firms (lodging and restaurant) (Guand Gao, 2000; Gu, 2002; Kim, H., Gu, Z., 2006). Some of the most recent studies of lodgingbusiness failure prediction are:
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