Greener Journal of Economics and Accountancy

Open Access

Unegbu and Malgwi

Greener Journal of  Economics and Accountancy Vol. 2 (2), pp. 044-050June 2013

 ISSN: 2354-2357 © 2011 Greener Journals

Research Paper

Manuscript Number:102312126


Critical Insolvency symptoms catalyzing Developing Economies’ Corporate Failures


1Unegbu Angus O* and Malgwi Abdullahi A*


1School of Business & Entrepreneurship American University of Nigeria, Yola P.M.B 2250 Adamawa State, Nigeria

2Accountancy Department, School of Management Sciences University of Maiduguri, Nigeria


*Corresponding Author’s Email: angusu1 @gmail. com



The study is concerned with identifying flow based corporate insolvency symptoms that are critically catalyzing corporate failures in developing economies. Its other focus is to ascertain among the identified critical symptoms, those that are significant across industrial sectors. A sample of a thousand, two hundred financial statements from six hundred corporate bodies with inherent corporate insolvency indicators was investigated. All the investigated companies are Nigerian based corporate bodies. Technique of data analysis employed is Logit. The Log linear analysis was conducted at 5% significant level using SPSS software version 16. Five out of the twelve identified flow-based corporate insolvency indicators are found to be critically significant catalyzing business failures in developing economies. It is also found that certain insolvency symptoms are more manifest in catalyzing corporate failures across industrial sectors than others.


Key Words: Flow-based Indicators, Insolvency Indicators, Corporate failures, Developing Economy, Nigeria.

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