Date of Award

Spring 5-2014

Degree Type

Honors College Thesis

Department

Accounting

First Advisor

Michael Dugan

Advisor Department

Accounting

Abstract

With recent economic instability, bankruptcy prediction is a tool that is useful to companies and researchers who are interested in the financial stability of an industry or company. This thesis studies bankruptcy prediction during the most recent recession that occurred in the United States for General Motors with Ford as a comparison company and compares the possibility of bankruptcy to the price of gold per ounce for the corresponding year. The multiple discriminant analysis model was used to complete this research. This model uses financial ratios to predict bankruptcy. This research yielded an inverse relationship between the price of gold per ounce and the z-scores for both Ford and General Motors. This inverse relationship shows a correlation between bankruptcy prediction and the price of gold.

Included in

Accounting Commons

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