A multicriteria discrimination method for the prediction of financial distress: The case of GreeceA multicriteria discrimination method for the prediction of financial distress: The case of Greece Peer-Reviewed Journal Publication Δημοσίευση σε Περιοδικό με Κριτές 2015-10-271999enFinancial distress prediction is an essential issue in finance. Especially in emerging economies, predicting the future financial situation of individual corporate entities is even more significant, bearing in mind the general economic turmoil that can be caused by business failures. The research on developing quantitative financial distress prediction models has been focused on building discriminant models distinguishing healthy firms from financially distressed ones. Following this discrimination approach, this paper explores the applicability of a new non–parametric multicriteria decision aid discrimination method, called M.H.DIS, to predict financial distress using data concerning the case of Greece. A comparison with discriminant and logit analysis is performed using both a basic and a holdout sample. The results show that M.H.DIS can be considered as a new alternative tool for financial distress prediction. Its performance is superior to discriminant analysis and comparable to logit analysis (JEL G33, C61, C44, C25).http://creativecommons.org/licenses/by/4.0/Multinational Finance Journal2371-101 Zopounidis Konstantinos Ζοπουνιδης Κωνσταντινος Doumpos, Michael Capability, Financial (Financial literacy) Financial capability (Financial literacy) Literacy, Financial financial literacy capability financial financial literacy financial capability financial literacy literacy financial