Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin
This study attempts to construct and test financial distress prediction model for Malaysian Companies. The samplefor this study consists of84 companies listed on Bursa Malaysia that became financially distressed in 200/ and 2002 and a matched (by industry and firm size) sample 0/ 84 financially heal...
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| Format: | Article |
| Language: | English |
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Institute of Research, Development and Commercialization (IRDC)
2006
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| Online Access: | https://ir.uitm.edu.my/id/eprint/12978/1/AJ_TEW%20YOU%20HOO%20SMRJ%2006%201.pdf |
| _version_ | 1796899817484451840 |
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| author | Tew, You Hoo Nordin, Enylina |
| author_facet | Tew, You Hoo Nordin, Enylina |
| author_sort | Tew, You Hoo |
| collection | UITM |
| description | This study attempts to construct and test financial distress prediction model for Malaysian Companies. The samplefor this study consists of84 companies listed on Bursa Malaysia that became financially distressed in 200/ and 2002 and a matched (by industry and firm size) sample 0/ 84 financially healthy companies. The model is constructed by employing logistic regression analysis based on pooled data of5 years prior tofinancial distress. The model isfirst derived using the estimation sample andthen tested using the validation sample. Adding to the existing research onfinancial distress prediction models, the current model utilizes measures ofshareholders' equity to total liabilities, shareholders' equity to total assets, current liabilities to total assets, total borrowings to total assets andinventory turnover. The results are encouraging, as the model developed/or predicting corporatefinancial distress in Malaysia is reliable up to 5 years prior to financial distress. II is also believed thai the prediction model can be useful to different groups of users such as policy makers, financial institutions, creditors, managers, bankers, investors and shareholders. |
| first_indexed | 2024-03-06T01:26:31Z |
| format | Article |
| id | oai:ir.uitm.edu.my:12978 |
| institution | Universiti Teknologi MARA |
| language | English |
| last_indexed | 2024-03-06T01:26:31Z |
| publishDate | 2006 |
| publisher | Institute of Research, Development and Commercialization (IRDC) |
| record_format | dspace |
| spelling | oai:ir.uitm.edu.my:129782016-06-09T16:30:50Z https://ir.uitm.edu.my/id/eprint/12978/ Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin smrj Tew, You Hoo Nordin, Enylina Financial management. Business finance. Corporation finance Malaysia This study attempts to construct and test financial distress prediction model for Malaysian Companies. The samplefor this study consists of84 companies listed on Bursa Malaysia that became financially distressed in 200/ and 2002 and a matched (by industry and firm size) sample 0/ 84 financially healthy companies. The model is constructed by employing logistic regression analysis based on pooled data of5 years prior tofinancial distress. The model isfirst derived using the estimation sample andthen tested using the validation sample. Adding to the existing research onfinancial distress prediction models, the current model utilizes measures ofshareholders' equity to total liabilities, shareholders' equity to total assets, current liabilities to total assets, total borrowings to total assets andinventory turnover. The results are encouraging, as the model developed/or predicting corporatefinancial distress in Malaysia is reliable up to 5 years prior to financial distress. II is also believed thai the prediction model can be useful to different groups of users such as policy makers, financial institutions, creditors, managers, bankers, investors and shareholders. Institute of Research, Development and Commercialization (IRDC) 2006 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/12978/1/AJ_TEW%20YOU%20HOO%20SMRJ%2006%201.pdf Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin. (2006) Social and Management Research Journal (SMRJ) <https://ir.uitm.edu.my/view/publication/Social_and_Management_Research_Journal_=28SMRJ=29/>, 3 (1). pp. 123-132. ISSN 1675-7017 https://smrj.uitm.edu.my/ |
| spellingShingle | Financial management. Business finance. Corporation finance Malaysia Tew, You Hoo Nordin, Enylina Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin |
| title | Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin |
| title_full | Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin |
| title_fullStr | Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin |
| title_full_unstemmed | Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin |
| title_short | Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin |
| title_sort | predicting corporate financial distress using logistic regression malaysian evidence tew you hoo and enylina nordin |
| topic | Financial management. Business finance. Corporation finance Malaysia |
| url | https://ir.uitm.edu.my/id/eprint/12978/1/AJ_TEW%20YOU%20HOO%20SMRJ%2006%201.pdf |
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