AN EXAMINATION OF THE POTENTIAL IMPACT OF RISK ON VIABILITY ASSESSMENTS FORFINANCIALLY DISTRESSED FIRMS: THE CASE OF PROFESSIONAL USER GROUPS OF COMPANY ACCOUNTS

Main Article Content

Sylvia Constantinides

Abstract

Risky conditions in conjunction with individuals' attitude to risk would normally lead to risk-averse behavior (Fishbein & Ajzen, 1975; Ajzen & Fishbein, 1980). In this research, risk-averse behavior (the dependent variable) relates to the "going-concern" opinion of financially distressed firms. A logistic regression model used as predictors of risk measurements (risky conditions and risk attitude) correctly predicts 97.6% of the nongoing concern opinions. In conclusion, the empirical evidence demonstrates a subtle impact of risk on individuals' behavior despite the fact that distinct statistical tests do not fully support this.

Article Details

How to Cite
Sylvia Constantinides. (2007). AN EXAMINATION OF THE POTENTIAL IMPACT OF RISK ON VIABILITY ASSESSMENTS FORFINANCIALLY DISTRESSED FIRMS: THE CASE OF PROFESSIONAL USER GROUPS OF COMPANY ACCOUNTS. Asian Academy of Management Journal, 12(1), 35–50. https://ejournal.usm.my/aamj/article/view/aamj_vol12-no-1-2007_3
Section
Original Articles