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Predicting Financial Distress based on Corporate Actions

In spite of abundant literature on financial distress prediction modeling, corpus of empirical work on predictive capacity of corporate actions is scant. The prevalent norm of using accounting information suffers from being out-dated quickly, whereas corporate actions of firms are typically disclose...

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Main Author: Mohamad, Azhar
Format: Conference or Workshop Item
Language:English
English
Published: 2016
Subjects:
HG4001 Financial management. Business finance. Corporation finance.
Online Access:http://irep.iium.edu.my/50541/2/Legoland_conference_-_proof_of_attendance.pdf
http://irep.iium.edu.my/50541/1/Legoland_GBSE_Predicting_Financial_Distress.pdf
http://irep.iium.edu.my/50541/
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spelling my.iium.irep.505412016-05-04T14:13:25Z http://irep.iium.edu.my/50541/ Predicting Financial Distress based on Corporate Actions Mohamad, Azhar HG4001 Financial management. Business finance. Corporation finance. In spite of abundant literature on financial distress prediction modeling, corpus of empirical work on predictive capacity of corporate actions is scant. The prevalent norm of using accounting information suffers from being out-dated quickly, whereas corporate actions of firms are typically disclosed promptly. This study investigates which corporate actions can help to predict financial distress and to examine whether prediction of financial distress using corporate actions can improve classification accuracy vis-à-vis accounting ratios. Additional comparison is carried out based on a combination of accounting ratios and corporate actions as well as models wherein information is incorporated separately. We find that the frequency of new issue of capital and frequency of changes in Audit Committee are significant predictors of financial distress. Furthermore, we also find that Working Capital to Total Assets Ratio and Asset Turnover Ratio are reliable predictors of financial distress among the accounting ratios. 2016-04 Conference or Workshop Item REM application/pdf en http://irep.iium.edu.my/50541/2/Legoland_conference_-_proof_of_attendance.pdf application/pdf en http://irep.iium.edu.my/50541/1/Legoland_GBSE_Predicting_Financial_Distress.pdf Mohamad, Azhar (2016) Predicting Financial Distress based on Corporate Actions. In: 3rd International Conference on Global Business & Social Entrepreneurship, 23-24 April 2016, Johor Bahru, Johor. (Unpublished)
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
topic HG4001 Financial management. Business finance. Corporation finance.
spellingShingle HG4001 Financial management. Business finance. Corporation finance.
Mohamad, Azhar
Predicting Financial Distress based on Corporate Actions
description In spite of abundant literature on financial distress prediction modeling, corpus of empirical work on predictive capacity of corporate actions is scant. The prevalent norm of using accounting information suffers from being out-dated quickly, whereas corporate actions of firms are typically disclosed promptly. This study investigates which corporate actions can help to predict financial distress and to examine whether prediction of financial distress using corporate actions can improve classification accuracy vis-à-vis accounting ratios. Additional comparison is carried out based on a combination of accounting ratios and corporate actions as well as models wherein information is incorporated separately. We find that the frequency of new issue of capital and frequency of changes in Audit Committee are significant predictors of financial distress. Furthermore, we also find that Working Capital to Total Assets Ratio and Asset Turnover Ratio are reliable predictors of financial distress among the accounting ratios.
format Conference or Workshop Item
author Mohamad, Azhar
author_facet Mohamad, Azhar
author_sort Mohamad, Azhar
title Predicting Financial Distress based on Corporate Actions
title_short Predicting Financial Distress based on Corporate Actions
title_full Predicting Financial Distress based on Corporate Actions
title_fullStr Predicting Financial Distress based on Corporate Actions
title_full_unstemmed Predicting Financial Distress based on Corporate Actions
title_sort predicting financial distress based on corporate actions
publishDate 2016
url http://irep.iium.edu.my/50541/2/Legoland_conference_-_proof_of_attendance.pdf
http://irep.iium.edu.my/50541/1/Legoland_GBSE_Predicting_Financial_Distress.pdf
http://irep.iium.edu.my/50541/
_version_ 1643613752479711232
score 13.244404

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