Survey the role of non-financial factor in credit risk evaluation evidence from tehran stock exchange (tse

Mojtaba Mortezaee and Majid Govahi

This paper is aim to investigate technical efficiency to predict business failures. We use samples of listed companies of Tehran Stock Exchange (TSE) market including;Steel and Metal industry, automotive industriesand Oil, Gas and Petrochemical industriesin order to examine efficiency in each industry. These efficiency evaluationis based on non-parametric Data Envelopment Analysis (DEA) method and logit regression models. Our results show that during sample period (2010-2015) among Steel and Metal industry, automotive industries and Oil, Gas and Petrochemical industries, 17.76% , 32.29% and 38.54% are respectively at risk of bankruptcy.

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