A procedure for evaluating grain elevator bankruptcies

During the 1981–1982 season, seven grain elevator bankruptcies occurred in Louisiana resulting in significant losses to warehouse receipts and scale ticket holders, to creditors, and to owners of the elevators. Through a rigorous comparison of certain financial and operating ratios of those that fai...

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Bibliographic Details
Published in:Agribusiness (New York, N.Y.) N.Y.), 1987, Vol.3 (4), p.427-437
Main Authors: Wharton, R.B, Harper, S.D, Traylor, H.D
Format: Article
Language:English
Subjects:
Agriculture
ANALISIS ESTADISTICO
ANALYSE STATISTIQUE
BANKRUPTCY
DEBT
DETTE
DEUDAS
Discriminant analysis
ELEVADORES
ELEVATEUR
ELEVATORS
Elevators & escalators
FORECASTING
GRAIN
GRANOS
Licenses
logit analysis
LOUISIANA
LOUISIANE
LUISIANA
MODELE
MODELOS
Operating ratios
PREVISION
PRONOSTICO
Random variables
Solvency
STATISTICAL ANALYSIS
Warehouses
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Description
Summary:During the 1981–1982 season, seven grain elevator bankruptcies occurred in Louisiana resulting in significant losses to warehouse receipts and scale ticket holders, to creditors, and to owners of the elevators. Through a rigorous comparison of certain financial and operating ratios of those that failed with a sample of survivors, a procedure for evaluation and prediction of failures was investigated. Measures of liquidity, solvency, cash on hand, and the number of grains handled predicted six of the seven bankruptcies and survival for 19 of the other 22 firms in the sample. Similar results were obtained when applied to an out‐of‐sample population.
ISSN:0742-4477
1520-6297
DOI:10.1002/1520-6297(198724)3:4<427::AID-AGR2720030408>3.0.CO;2-K