The Use of Ohlson's O-Score in Predicting Bankruptcy for Small Asset and Large Asset Firms in Thailand

摘要

This study seeks to determine if there a significant difference in the predictive accuracy of Ohlson's model between large asset firms and small asset firms. The results of the study indicate that Ohlson's model is a better predictor for small firms than for large firms. This was not consistent, however, for each year. Considering only bankrupt firms, Ohlson's model predicted with higher accuracy the bankruptcy of large asset firms in all three years. In the case of nonbankrupt firms the model predicted with higher accuracy for small asset firms in all three years prior to bankruptcy.