Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong

This study attempts to investigate whether financial ratio analysis derived from financial statements information can be used to give sufficient signal prior to financial distress and/or business failure in the context of Malaysian construction industry. The paper also aims to develop business failu...

Full description

Saved in:

Bibliographic Details
Main Author:	Mohd Nong, Aina Syakirah
Format:	Thesis
Language:	English
Published:	2015
Online Access:	https://ir.uitm.edu.my/id/eprint/18285/2/TM_AINA%20SYAKIRAH%20MOHD%20NONG%20AC%2015_5.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.18285
record_format	uketd_dc
spelling	my-uitm-ir.182852022-03-10T06:42:13Z Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong 2015 Mohd Nong, Aina Syakirah This study attempts to investigate whether financial ratio analysis derived from financial statements information can be used to give sufficient signal prior to financial distress and/or business failure in the context of Malaysian construction industry. The paper also aims to develop business failure prediction model using logistic regression as a statistical model and financial ratios as independent variables. This study focused on construction industry and thus analyse 14 construction companies consist of seven distressed firms and its healthy counterpart. Data was collected up to five years before the distressed company being declared as PN17. This study employs descriptive and correlation analysis to compare the characteristics of both group and investigates the relationship between financial ratios and financial health of companies. Logistic regression was then utilised in an attempt to develop a model that can predict business failure and the outcome of this study shows that, the model has the ability to predict financial distress of Malaysian construction companies with 71.4% accuracy rate. The findings also reveal the significance of solvency in determining the financial health of a company which supports prior literature in this field'. In conclusion, the study provides overview of Malaysian construction industry and might benefit related stakeholder in economic decision making process while considering and analysing financial statements information. 2015 Thesis https://ir.uitm.edu.my/id/eprint/18285/ https://ir.uitm.edu.my/id/eprint/18285/2/TM_AINA%20SYAKIRAH%20MOHD%20NONG%20AC%2015_5.pdf text en public mphil masters Universiti Teknologi MARA Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
description	This study attempts to investigate whether financial ratio analysis derived from financial statements information can be used to give sufficient signal prior to financial distress and/or business failure in the context of Malaysian construction industry. The paper also aims to develop business failure prediction model using logistic regression as a statistical model and financial ratios as independent variables. This study focused on construction industry and thus analyse 14 construction companies consist of seven distressed firms and its healthy counterpart. Data was collected up to five years before the distressed company being declared as PN17. This study employs descriptive and correlation analysis to compare the characteristics of both group and investigates the relationship between financial ratios and financial health of companies. Logistic regression was then utilised in an attempt to develop a model that can predict business failure and the outcome of this study shows that, the model has the ability to predict financial distress of Malaysian construction companies with 71.4% accuracy rate. The findings also reveal the significance of solvency in determining the financial health of a company which supports prior literature in this field'. In conclusion, the study provides overview of Malaysian construction industry and might benefit related stakeholder in economic decision making process while considering and analysing financial statements information.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Mohd Nong, Aina Syakirah
spellingShingle	Mohd Nong, Aina Syakirah Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong
author_facet	Mohd Nong, Aina Syakirah
author_sort	Mohd Nong, Aina Syakirah
title	Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong
title_short	Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong
title_full	Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong
title_fullStr	Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong
title_full_unstemmed	Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong
title_sort	prediction of business failure among malaysian construction companies using logistic regression analysis / aina syakirah mohd nong
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2015
url	https://ir.uitm.edu.my/id/eprint/18285/2/TM_AINA%20SYAKIRAH%20MOHD%20NONG%20AC%2015_5.pdf
_version_	1783733651702284288

Prediction of business failure among Malaysian construction companies using logistic regression analysis / Aina Syakirah Mohd Nong

Similar Items