Financial distress models in Belgium: The results of a decade of empirical research

Abstract

In Belgium, the first financial distress models were estimated in 1982 by Ooghe and Verbaere. An overview is presented of the financial distress studies conducted in Belgium since then. Starting from the early models, the research efforts concentrated on the validation of those models are described, which led finally to the estimation of the 2nd generation of models in 1991 by Ooghe, Joos and De Vos. Some suggestions for further research are presented.