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Abstract

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.