Staff View: The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz

The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz

In this paper, we analyze a panel data of 190 financially distressed firms to determine which firm-specific variable is reliably important in explaining the level of indirect financial distress costs. A better understanding of factors affecting indirect financial distress costs is essential not only...

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Main Authors:	Bulot, Norhisam, Salamudin, Norhana, Abd Aziz, Rasyidah
Format:	Article
Language:	English
Published:	Universiti Teknologi MARA, Perlis 2017
Subjects:	Financial management. Business finance. Corporation finance Earnings management
Online Access:	http://ir.uitm.edu.my/id/eprint/40729/1/40729.pdf http://ir.uitm.edu.my/id/eprint/40729/ https://jurnalintelek.uitm.edu.my/index.php/main
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id	my.uitm.ir.40729
record_format	eprints
spelling	my.uitm.ir.407292021-01-25T08:36:36Z http://ir.uitm.edu.my/id/eprint/40729/ The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz Bulot, Norhisam Salamudin, Norhana Abd Aziz, Rasyidah Financial management. Business finance. Corporation finance Earnings management In this paper, we analyze a panel data of 190 financially distressed firms to determine which firm-specific variable is reliably important in explaining the level of indirect financial distress costs. A better understanding of factors affecting indirect financial distress costs is essential not only for the purpose of enriching empirical studies in this field but also for the purpose of cross-country comparison. Optimal model selection procedure, together with panel data analysis technique is used to determine the most optimal model to explain the level of indirect financial distress costs. The findings of this paper indicate that the average size of the indirect financial distress costs for the period of study is 21.6%. In addition to that, this paper finds evidence suggesting the relevance of size of the firm, the level of intangible assets and the existence of alternative investment opportunities, which implies the importance of these factors in determining the level of indirect financial distress costs. This paper argues that the level of liquid assets and expected earnings growth are statistically unimportant in determining the level of indirect financial distress costs for Malaysia’s financially distressed firms Universiti Teknologi MARA, Perlis 2017-06 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/40729/1/40729.pdf Bulot, Norhisam and Salamudin, Norhana and Abd Aziz, Rasyidah (2017) The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz. Jurnal Intelek, 12 (1). pp. 13-20. ISSN 2231-7716 https://jurnalintelek.uitm.edu.my/index.php/main
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
topic	Financial management. Business finance. Corporation finance Earnings management
spellingShingle	Financial management. Business finance. Corporation finance Earnings management Bulot, Norhisam Salamudin, Norhana Abd Aziz, Rasyidah The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz
description	In this paper, we analyze a panel data of 190 financially distressed firms to determine which firm-specific variable is reliably important in explaining the level of indirect financial distress costs. A better understanding of factors affecting indirect financial distress costs is essential not only for the purpose of enriching empirical studies in this field but also for the purpose of cross-country comparison. Optimal model selection procedure, together with panel data analysis technique is used to determine the most optimal model to explain the level of indirect financial distress costs. The findings of this paper indicate that the average size of the indirect financial distress costs for the period of study is 21.6%. In addition to that, this paper finds evidence suggesting the relevance of size of the firm, the level of intangible assets and the existence of alternative investment opportunities, which implies the importance of these factors in determining the level of indirect financial distress costs. This paper argues that the level of liquid assets and expected earnings growth are statistically unimportant in determining the level of indirect financial distress costs for Malaysia’s financially distressed firms
format	Article
author	Bulot, Norhisam Salamudin, Norhana Abd Aziz, Rasyidah
author_facet	Bulot, Norhisam Salamudin, Norhana Abd Aziz, Rasyidah
author_sort	Bulot, Norhisam
title	The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz
title_short	The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz
title_full	The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz
title_fullStr	The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz
title_full_unstemmed	The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz
title_sort	size of indirect financial distress costs: which variable is reliably important? / norhisam bulot, norhana salamudin and rasyidah abd aziz
publisher	Universiti Teknologi MARA, Perlis
publishDate	2017
url	http://ir.uitm.edu.my/id/eprint/40729/1/40729.pdf http://ir.uitm.edu.my/id/eprint/40729/ https://jurnalintelek.uitm.edu.my/index.php/main
_version_	1690374277697634304
score	13.211869

The size of indirect financial distress costs: which variable is reliably important? / Norhisam Bulot, Norhana Salamudin and Rasyidah Abd Aziz

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