Publication:

Forecasting corporate failure in Malaysian industrial sector firms

Show simple item record
DC FieldValue
dc.contributor.authorMohamad Ali Abdul Hamid
dc.contributor.authorAnnuar Md. Nassir
dc.contributor.authorZainal Abidin Mohamad
dc.contributor.authorZulkarnain Muhamad Sori
dc.date.accessioned2020-02-05T06:15:54Z
dc.date.available2020-02-05T06:15:54Z
dc.date.issued2001
dc.description.abstractFinancial ratios have long been used as predictor of important events in financial markets of developed economies. Formulating business failure prediction models utilising financial ratios is no exception. However, there is hardly any evidence on failure prediction in developing markets such as Malaysia. This study develops a failure prediction model for industrial sector listed firms that discriminates between 24 failed and non-failed for the period 1980 to 1996. The findings show that the model correctly and significantly classified 91.1% and 89.3% of the failed and non-failed firms respectively. An alternative prediction model developed based solely on accounting information showed similar results. These models predict failure up to 4 years before the actual event. The variables in the final model implies that profits, cash flows , working capital and net worth are important determinants of failures of firms listed in the Kuala Lumpur Stock Exchange.en_US
dc.identifier.citationMuhamad Sori, Z., Abdul Hamid, M. A., Md. Nassir, A., & Mohamad, Z. A. (2001). Forecasting corporate failure in Malaysian industrial sector firms. Asian Academy of Management Journal, 6 (1), pp. 15-30.en_US
dc.identifier.issn2180-4184
dc.identifier.urihttps://ikr.inceif.edu.my/handle/INCEIF/3166
dc.languageEnglish
dc.language.isoengen_US
dc.publisherUSMen_US
dc.rights2001. USM
dc.sourceSEDONA
dc.subjectBusiness failureen_US
dc.subjectCorporate failureen_US
dc.subjectPrediction modelen_US
dc.subjectMalaysiaen_US
dc.titleForecasting corporate failure in Malaysian industrial sector firmsen_US
dc.typeJournal Articleen_US
dlc.maintopicConventional financeen_US
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional financeen_US
relation.isAuthorOfPublication6db6c13d-0845-4828-add4-5ebe0bba4e3e
relation.isAuthorOfPublication6db6c13d-0845-4828-add4-5ebe0bba4e3e
relation.isAuthorOfPublication6db6c13d-0845-4828-add4-5ebe0bba4e3e
relation.isAuthorOfPublication.latestForDiscovery6db6c13d-0845-4828-add4-5ebe0bba4e3e
Appears in Collections
Journal Article
Files

Abstract View

2661652

View & Download

177330