An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market
The purpose of this study is to highlight the predictors of financial distress during the period 1990 to 2000. Previous studies highlight the inadequacies of the MDA and the log it models and suggest that a hazard model gives a more accurate result due to its consideration of time varying co-variat...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2005
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/472/1/an_empirical_investigation_of_failing.pdf |
| _version_ | 1825739687049822208 |
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| author | Md Rus, Rohani Abdullah, Nur Adiana Hiau |
| author_facet | Md Rus, Rohani Abdullah, Nur Adiana Hiau |
| author_sort | Md Rus, Rohani |
| collection | UUM |
| description | The purpose of this study is to highlight the predictors of financial distress during the period 1990 to 2000. Previous studies highlight the inadequacies of the MDA and the
log it models and suggest that a hazard model gives a more accurate result due to its consideration of time varying co-variates. By applying the hazard model, we find that
leverage, profit, cash flow, liquidity, size and growth play a significant role in explaining financial distress with 83% accuracy rate. This rate did not change much when the model is applied to the hold-out sample. We also find that multicollinearity problem is not a threat in our analysis. |
| first_indexed | 2024-07-04T05:13:31Z |
| format | Conference or Workshop Item |
| id | uum-472 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:13:31Z |
| publishDate | 2005 |
| record_format | eprints |
| spelling | uum-4722020-11-04T02:03:37Z https://repo.uum.edu.my/id/eprint/472/ An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market Md Rus, Rohani Abdullah, Nur Adiana Hiau HG Finance The purpose of this study is to highlight the predictors of financial distress during the period 1990 to 2000. Previous studies highlight the inadequacies of the MDA and the log it models and suggest that a hazard model gives a more accurate result due to its consideration of time varying co-variates. By applying the hazard model, we find that leverage, profit, cash flow, liquidity, size and growth play a significant role in explaining financial distress with 83% accuracy rate. This rate did not change much when the model is applied to the hold-out sample. We also find that multicollinearity problem is not a threat in our analysis. 2005-07 Conference or Workshop Item NonPeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/472/1/an_empirical_investigation_of_failing.pdf Md Rus, Rohani and Abdullah, Nur Adiana Hiau (2005) An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market. In: 16th Asian Finance Association Conference (AsianFA 2005) , 11-13 July 2005, Hotel Istana, Kuala Lumpur . (Unpublished) |
| spellingShingle | HG Finance Md Rus, Rohani Abdullah, Nur Adiana Hiau An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market |
| title | An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market |
| title_full | An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market |
| title_fullStr | An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market |
| title_full_unstemmed | An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market |
| title_short | An empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market |
| title_sort | empirical investigation of failing companies and their determinants using the hazard model in an emerging capital market |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/472/1/an_empirical_investigation_of_failing.pdf |
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