Sabela, Sibusiso WellingtonBrummer, Leon MarxHall, J.H. (John Henry)Wolmarans, Hendrik Petrus2018-08-302018-08-302018-04-24Sabela, S.W., Brummer, L.M., Hall, J.H. & Wolmarans, H.P., 2018, ‘Using fundamental, market and macroeconomic variables to predict financial distress: A study of companies listed on the Johannesburg Stock Exchange’, Journal of Economic and Financial Sciences 11(1), a168. https://DOI.org/10.4102/jef.v11i1.168.1995-7076 (print)2312-2803 (online)10.4102/jef.v11i1.168http://hdl.handle.net/2263/66394This manuscript is based on S.W.S.’s PhD thesis, submitted at the University of Pretoria. L.M.B. was the supervisor while J.H.H. and H.P.W. were co-supervisors. (http://hdl.handle.net/2263/60519)This study presents a three-stage approach in determining financial distress of companies listed on the Johannesburg Stock Exchange. A novel feature of the present study is that it deviates from a binary classification of corporate distress prediction to present a multinomial outcome where the model predicts distressed, depressed and healthy companies. The research results show an improvement in the prediction accuracy rate when fundamental data is combined with market-based data. However, the further addition of macroeconomic indicators does not enhance the prediction accuracy.en© 2018. The Authors. Licensee: AOSIS. This work is licensed under the Creative Commons Attribution License.Financial distressCompanies listedPrediction accuracy rateJohannesburg Stock Exchange (JSE)Article