ABSTRACT
This chapter briefly reviews the major empirical studies using multiple discriminant analysis for predicting company failure. It then uses the technique upon those small manufacturing com panies described in Chapter 2. The chapter begins with a very brief non-technical explanation of multiple discriminant analysis which is followed by a discussion of some of the problems of applying this technique to corporate failure. To benefit from this discussion the reader is advised to have studied either the review by Altman etal. (1981) or by Steele (1984).
