A Modal Predict Corporate Failure in the Developing Eonomies: A case of Listed companies on the Ghana stock Exchange

The primary objective of the study is to develop a modal for perdicting the failure status of corporate entities in the developing economies based on the both financial and non-financial ratios, The study aimed at developing a modal that predict the probability of failure of companies operating in the developing economies using financial ratios and non-financial ratio. The logit modal was the main statistical tool applied. A matched sample design was used . Three models were developed and compared; a modal consisting of financial and non-financial ratios (Model 3). From the study, comparatively Modal 2 is more efficient in predicting the corporate failure status in one year from now. Prediction of failure status of a corporate entity therefore should consider both financial and non-financial variables