Developing Context-Specific EWS for Sri Lankan Companies

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This research examines financial distress in Sri Lanka, addressing the lack of localized models. It reviews financial distress concepts and evaluates existing models, utilizing principal financial theories. Employing a matched-pair sample design and financial ratios, the study develops an Early Warning System (EWS) using Multiple Discriminant Analysis (MDA), revealing key financial traits of distressed firms. The study's MDA model is compared to the Altman Z-score, highlighting superior...