Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables
| Autor: | Muhammad Sohail Tahir, Mohd Norfian Alifiah |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
Financial distress
Non-manufacturing sector media_common.quotation_subject Working capital Money supply 0211 other engineering and technologies Financial ratio 02 engineering and technology Manufacturing sector Net income 0502 economics and business Econometrics Debt ratio media_common 021103 operations research Variables lcsh:HF5735-5746 05 social sciences Malaysia lcsh:Business records management General Business Management and Accounting Macroeconomic variables Inventory turnover Financial ratios Current ratio Business 050203 business & management |
| Zdroj: | Management Science Letters, Vol 8, Iss 6, Pp 593-604 (2018) |
| ISSN: | 1923-9343 1923-9335 |
| Popis: | This paper attempts to predict financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using financial distress companies as the dependent variable and financial ratios and macroeconomic variables as the independent variables. Logit Analysis was used as the analysis procedure because ratios do not have to be normal if it is used. It is also suitable when the dependent variable is binary in nature. Furthermore, it can also provide the probability of a company being financially distressed. This study found that the independent variables that can be used to predict financial distress companies in the manufacturing sector in Malaysia were total assets turnover ratio, current ratio, net income to total assets ratio and money supply (M2). However, the independent variables that can be used to predict financial distress companies in the non-manufacturing sector in Malaysia were debt ratio, working capital ratio, net income to total assets ratio and money supply (M2). This study provides the prediction models of financial distress com-panies in the manufacturing and non-manufacturing sectors in Malaysia using financial ratios and macroeconomic variables as its independent variables. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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