Prediction of financial distress companies on bursa Malaysia : an examination of PN17 companies

Chhoa, Siew Phin (2010) Prediction of financial distress companies on bursa Malaysia : an examination of PN17 companies. Masters thesis, Universiti Malaysia Sarawak, (UNIMAS).

PDF (Please get the password by email to repository@unimas.my, or call ext: 3914/ 3942/ 3933) Chhoa Siew Phin ft.pdf Restricted to Registered users only Download (25MB)

Abstract

( under the provisions of Practice Note 17, issued by the Bursa Malaysia on 3 January 2005, 31 public listed companies as of 5 April 2008, after fulfilling the criteria ofPN17, were classified as financially distressed companies. The failure or bankruptcy of financially distressed companies is a serious threat to the many economic agents holding an interest in the distressed companies, namely; shareholders, managers, employees, bankers and clien~ Business failure involves not only many parties but large cost (both direct and indirect) as well. The main purpose of this paper is therefore to use financial variables to predict potential financially distressed firms using the logistic regression model. Then the predictive ability of the prediction model was analysed and the findings are encouraging and consistent for the sample analysed and the period of study. The results demonstrate that profitability; liquidity and leverage ratios are among the most significant ones.

Actions (For repository members only: login required)

View Item