Paper Title
Development of an Industry-Relative Model for Bankruptcy Forecasting

Abstract
This study develops an industry-relative bankruptcy model based on Altman’s Z-score model. Using a balanced combination of accounting- and market-based ratios from 258 bankrupt and nonbankrupt companies, we develop a modified Altman’s Z-score model. The result indicates that a balanced combination of industry-relative accounting- and market-based ratios not only captures different aspects of bankruptcy risk, but also may yield a relatively high classification rate. As such, our findings help managers more accurately estimate bankruptcy risk and thus, have a better opportunity to take corrective actions early, enhancing corporate financial sustainability. Keywords - Bankruptcy, Financial Failure, Financial Sustainability, Industry-relative Ratio.