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Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail

Corporate failure prediction had been widely researched especially in the UK and us. However, there is limited study on corporate failure prediction for Malaysian companies. Thus, this study aims to develop a corporate failure prediction model for Malaysian companies by examining the relationship be...

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Main Author: Ismail, Nur Azlin
Format: Thesis
Language:English
Published: 2011
Online Access:https://ir.uitm.edu.my/id/eprint/17185/2/TM_NUR%20AZLIN%20ISMAIL%20AC%2011_5.pdf
https://ir.uitm.edu.my/id/eprint/17185/
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spelling my.uitm.ir.171852022-04-06T05:20:22Z https://ir.uitm.edu.my/id/eprint/17185/ Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail Ismail, Nur Azlin Corporate failure prediction had been widely researched especially in the UK and us. However, there is limited study on corporate failure prediction for Malaysian companies. Thus, this study aims to develop a corporate failure prediction model for Malaysian companies by examining the relationship between the accrual based and cash flow based within the same category of ratios. The categories selected for this study are liquidity, solvency, profitability and efficiency. Each category is represented by one accrual based and one cash flow based ratio. This study also examines whether there is a significant relationship between the dependent variable namely, the probability of corporate failure, and the independent variables which consist of ratios such as Current Asset to Total Asset, Operating Cash Flow Ratios, Debt Ratio, Cash Flow From Operating to Total Debt, Return on Invested Capital, Cash Return on Sales, Sales to Total Asset and Reinvestment Ratio. This study further examines the accuracy of the corporate failure prediction model by using selected ratios and logistic regression statistical was employed to construct this model. The final sample for this study consists of 25 failed companies where these companies are referred to as PN17 companies and 35 non-failed companies over a five-year period from 2005 to 2009. The finding of this study show that; a significant relationship exists between Debt ratio and Cash Flow to Debt ratio and between Return on Invested Capital and Cash Flow on Sales, all selected ratios have significant relationship with the probability of corporate failure except for Debt ratio and the logistic regression indicates that the accuracy model can be examined at an acceptable percentage 2011-04 Thesis NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/17185/2/TM_NUR%20AZLIN%20ISMAIL%20AC%2011_5.pdf (2011) Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail. Masters thesis, thesis, Universiti Teknologi MARA.
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
description Corporate failure prediction had been widely researched especially in the UK and us. However, there is limited study on corporate failure prediction for Malaysian companies. Thus, this study aims to develop a corporate failure prediction model for Malaysian companies by examining the relationship between the accrual based and cash flow based within the same category of ratios. The categories selected for this study are liquidity, solvency, profitability and efficiency. Each category is represented by one accrual based and one cash flow based ratio. This study also examines whether there is a significant relationship between the dependent variable namely, the probability of corporate failure, and the independent variables which consist of ratios such as Current Asset to Total Asset, Operating Cash Flow Ratios, Debt Ratio, Cash Flow From Operating to Total Debt, Return on Invested Capital, Cash Return on Sales, Sales to Total Asset and Reinvestment Ratio. This study further examines the accuracy of the corporate failure prediction model by using selected ratios and logistic regression statistical was employed to construct this model. The final sample for this study consists of 25 failed companies where these companies are referred to as PN17 companies and 35 non-failed companies over a five-year period from 2005 to 2009. The finding of this study show that; a significant relationship exists between Debt ratio and Cash Flow to Debt ratio and between Return on Invested Capital and Cash Flow on Sales, all selected ratios have significant relationship with the probability of corporate failure except for Debt ratio and the logistic regression indicates that the accuracy model can be examined at an acceptable percentage
format Thesis
author Ismail, Nur Azlin
spellingShingle Ismail, Nur Azlin
Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail
author_facet Ismail, Nur Azlin
author_sort Ismail, Nur Azlin
title Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail
title_short Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail
title_full Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail
title_fullStr Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail
title_full_unstemmed Predicting corporate failure: evidence from Malaysian companies / Nur Azlin Ismail
title_sort predicting corporate failure: evidence from malaysian companies / nur azlin ismail
publishDate 2011
url https://ir.uitm.edu.my/id/eprint/17185/2/TM_NUR%20AZLIN%20ISMAIL%20AC%2011_5.pdf
https://ir.uitm.edu.my/id/eprint/17185/
_version_ 1729707445329068032
score 13.211869

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