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Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants

The rising debt problem and bankruptcy among civil servants in this country is worrying. To what extent this problem is contributed by financial ratios is not empirically assured. Financial ratios and bankruptcy are two aspects that are wherefore related with one another that have received major con...

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Main Authors: Nair, Yasotha, Paim, Laily, Sabri, Mohamad Fazli, Abd. Rahim @ Abd. Wahab, Husniyah
Format: Article
Language:English
Published: Institute of Business Excellence and UiTM Press 2016
Online Access:http://psasir.upm.edu.my/id/eprint/54317/1/Financial%20ratios%20and%20the%20probabilistic%20prediction%20of%20bankruptcy%20among%20Malaysian%20civil%20servants%20.pdf
http://psasir.upm.edu.my/id/eprint/54317/
http://www.jeeir.com/v2/index.php/29-current/2016/vol-4-no-2-2016/122-paper3-vol4-no2-2016
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spelling my.upm.eprints.543172018-03-13T04:50:32Z http://psasir.upm.edu.my/id/eprint/54317/ Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants Nair, Yasotha Paim, Laily Sabri, Mohamad Fazli Abd. Rahim @ Abd. Wahab, Husniyah The rising debt problem and bankruptcy among civil servants in this country is worrying. To what extent this problem is contributed by financial ratios is not empirically assured. Financial ratios and bankruptcy are two aspects that are wherefore related with one another that have received major consideration from scholars and financial advisor. Financial ratios can affect an individual, team and also organization either directly or indirectly. Changes in civil servant’s financial ratios whether they achieved the minimum requirement by fulfilling only one out of three financial ratios (liquidity ratio, solvency ratio and consumer debt ratio) will affect the bankruptcy probability among them. The purpose of this study is to predict the bankruptcy probability of civil servants based on their financial ratio as a tool of objective measurement. A total of 399 civil servants from five randomly selected ministries responded to the e-survey (email based) using multistage cluster sampling technique. The results identified that around 20 out of 399 civil servants did not fulfill any of the financial ratio requirement and these are the civil servants who face higher chances of becoming bankrupt in five years’ time. Apart from that, the findings of financial ratio in this study were considered fairly stable since 95 percent of the civil servants achieved the minimum requirement by fulfilling only one out of three financial ratios. It was also shown that five percent of the civil servants were identified to have bankruptcy probability. Thus, proper action should be taken through financial training, education and literacy in order to prevent unwanted scenarios in the future. Consequently, findings of this study may be used as basis to reduce financial problems and bankruptcy among Malaysian civil servants. Institute of Business Excellence and UiTM Press 2016 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/54317/1/Financial%20ratios%20and%20the%20probabilistic%20prediction%20of%20bankruptcy%20among%20Malaysian%20civil%20servants%20.pdf Nair, Yasotha and Paim, Laily and Sabri, Mohamad Fazli and Abd. Rahim @ Abd. Wahab, Husniyah (2016) Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants. Journal of Emerging Economies and Islamic Research, 4 (2). pp. 1-13. ISSN 2289-2559 http://www.jeeir.com/v2/index.php/29-current/2016/vol-4-no-2-2016/122-paper3-vol4-no2-2016
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The rising debt problem and bankruptcy among civil servants in this country is worrying. To what extent this problem is contributed by financial ratios is not empirically assured. Financial ratios and bankruptcy are two aspects that are wherefore related with one another that have received major consideration from scholars and financial advisor. Financial ratios can affect an individual, team and also organization either directly or indirectly. Changes in civil servant’s financial ratios whether they achieved the minimum requirement by fulfilling only one out of three financial ratios (liquidity ratio, solvency ratio and consumer debt ratio) will affect the bankruptcy probability among them. The purpose of this study is to predict the bankruptcy probability of civil servants based on their financial ratio as a tool of objective measurement. A total of 399 civil servants from five randomly selected ministries responded to the e-survey (email based) using multistage cluster sampling technique. The results identified that around 20 out of 399 civil servants did not fulfill any of the financial ratio requirement and these are the civil servants who face higher chances of becoming bankrupt in five years’ time. Apart from that, the findings of financial ratio in this study were considered fairly stable since 95 percent of the civil servants achieved the minimum requirement by fulfilling only one out of three financial ratios. It was also shown that five percent of the civil servants were identified to have bankruptcy probability. Thus, proper action should be taken through financial training, education and literacy in order to prevent unwanted scenarios in the future. Consequently, findings of this study may be used as basis to reduce financial problems and bankruptcy among Malaysian civil servants.
format Article
author Nair, Yasotha
Paim, Laily
Sabri, Mohamad Fazli
Abd. Rahim @ Abd. Wahab, Husniyah
spellingShingle Nair, Yasotha
Paim, Laily
Sabri, Mohamad Fazli
Abd. Rahim @ Abd. Wahab, Husniyah
Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants
author_facet Nair, Yasotha
Paim, Laily
Sabri, Mohamad Fazli
Abd. Rahim @ Abd. Wahab, Husniyah
author_sort Nair, Yasotha
title Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants
title_short Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants
title_full Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants
title_fullStr Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants
title_full_unstemmed Financial ratios and the probabilistic prediction of bankruptcy among Malaysian civil servants
title_sort financial ratios and the probabilistic prediction of bankruptcy among malaysian civil servants
publisher Institute of Business Excellence and UiTM Press
publishDate 2016
url http://psasir.upm.edu.my/id/eprint/54317/1/Financial%20ratios%20and%20the%20probabilistic%20prediction%20of%20bankruptcy%20among%20Malaysian%20civil%20servants%20.pdf
http://psasir.upm.edu.my/id/eprint/54317/
http://www.jeeir.com/v2/index.php/29-current/2016/vol-4-no-2-2016/122-paper3-vol4-no2-2016
_version_ 1643835613351247872
score 13.211869

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