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Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables

This paper attempts to predict financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using financial distress companies as the dependent variable and financial ratios and macroeconomic variables as the independent variables. Logit Analysis was used as the analys...

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Main Authors: Alifiah, M. N., Tahir, M. S.
Format: Article
Language:English
Published: Growing Science 2018
Subjects:
HF Commerce
Online Access:http://eprints.utm.my/id/eprint/79839/1/MohdNorfianAlifiah2018_PredictingFinancialDistressCompanies.pdf
http://eprints.utm.my/id/eprint/79839/
http://dx.doi.org/10.5267/j.msl.2018.4.031
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spelling my.utm.798392019-01-28T06:56:27Z http://eprints.utm.my/id/eprint/79839/ Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables Alifiah, M. N. Tahir, M. S. HF Commerce This paper attempts to predict financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using financial distress companies as the dependent variable and financial ratios and macroeconomic variables as the independent variables. Logit Analysis was used as the analysis procedure because ratios do not have to be normal if it is used. It is also suitable when the dependent variable is binary in nature. Furthermore, it can also provide the probability of a company being financially distressed. This study found that the independent variables that can be used to predict financial distress companies in the manufacturing sector in Malaysia were total assets turnover ratio, current ratio, net income to total assets ratio and money supply (M2). However, the independent variables that can be used to predict financial distress companies in the nonmanufacturing sector in Malaysia were debt ratio, working capital ratio, net income to total assets ratio and money supply (M2). This study provides the prediction models of financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using financial ratios and macroeconomic variables as its independent variables. Growing Science 2018 Article PeerReviewed application/pdf en http://eprints.utm.my/id/eprint/79839/1/MohdNorfianAlifiah2018_PredictingFinancialDistressCompanies.pdf Alifiah, M. N. and Tahir, M. S. (2018) Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables. Management Science Letters, 8 (6). pp. 593-604. ISSN 1923-9335 http://dx.doi.org/10.5267/j.msl.2018.4.031 DOI:10.5267/j.msl.2018.4.031
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
language English
topic HF Commerce
spellingShingle HF Commerce
Alifiah, M. N.
Tahir, M. S.
Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables
description This paper attempts to predict financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using financial distress companies as the dependent variable and financial ratios and macroeconomic variables as the independent variables. Logit Analysis was used as the analysis procedure because ratios do not have to be normal if it is used. It is also suitable when the dependent variable is binary in nature. Furthermore, it can also provide the probability of a company being financially distressed. This study found that the independent variables that can be used to predict financial distress companies in the manufacturing sector in Malaysia were total assets turnover ratio, current ratio, net income to total assets ratio and money supply (M2). However, the independent variables that can be used to predict financial distress companies in the nonmanufacturing sector in Malaysia were debt ratio, working capital ratio, net income to total assets ratio and money supply (M2). This study provides the prediction models of financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using financial ratios and macroeconomic variables as its independent variables.
format Article
author Alifiah, M. N.
Tahir, M. S.
author_facet Alifiah, M. N.
Tahir, M. S.
author_sort Alifiah, M. N.
title Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables
title_short Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables
title_full Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables
title_fullStr Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables
title_full_unstemmed Predicting financial distress companies in the manufacturing and non-manufacturing sectors in Malaysia using macroeconomic variables
title_sort predicting financial distress companies in the manufacturing and non-manufacturing sectors in malaysia using macroeconomic variables
publisher Growing Science
publishDate 2018
url http://eprints.utm.my/id/eprint/79839/1/MohdNorfianAlifiah2018_PredictingFinancialDistressCompanies.pdf
http://eprints.utm.my/id/eprint/79839/
http://dx.doi.org/10.5267/j.msl.2018.4.031
_version_ 1643658308375019520
score 13.211869

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