Van der Colff, FrancoisVermaak, Frans N.S.2015-08-142015-08-142015-04Van der Colff, F & Vermaak, F 2015, 'Predicting financial distress using financial and non-financial variables', Journal of Economic and Financial Sciences, vol. 8, no. 1, pp. 243-260.1995-7076http://hdl.handle.net/2263/49320This study attempts to clarify whether using a hybrid model based on non-financial variables and financial variables is able to provide a more accurate company financial distress prediction model than using a model based on financial variables only. The relationship between the model test results and the De la Rey K-Score for the subject companies is tested, employing Cramer’s V statistical test. A movement towards a Cramer’s V value of one indicates a strengthening relationship, and a movement towards zero is an indication of a weakening relationship. Against this background, further empirical research is proposed to prove that a model combining financial variables with true non-financial variables provides a more accurate company distress prediction than a financial variable-only model. The limited evidence of a strengthening relationship found is insufficient to establish the superiority of the proposed model beyond reasonable doubt.enUniversity of Johannesburg, Faculty of Economic and Financial SciencesFinancial distress predictionNon-financial variablesFinancial distress continuumNeural networksArticle