A Precaution Diagnosis of Financial Distress via Grey Situation Decision

摘要

In order to provide some references for investors and lenders in making decisions, this paper aims to establish a precaution model of financial crisis for discriminating between normal and abnormal company. The Grey situation decision is utilized as a tool for the ranking of financial strength on the listed companies. Data enveloped analysis (DEA) has been used worldwide in performance ranking. Therefore, comparing these two similar approaches, the results indicate that the hit rate via Grey situation decision is the same as that of DEA.