Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman

This study was carried out to examine whether cash flow can be a good predictor to debt restructuring companies. Sixty companies of Kuala Lumpur Stock Exchange (KLSE) have been identified as a sample in the current study. Thirty companies were classified as debt restructuring and another 30 matching...

Full description

Saved in:

Bibliographic Details
Main Author:	Abd Rahman, Shariful Amran
Format:	Thesis
Language:	English
Published:	2001
Subjects:	Cash handbook Cash flow HG Finance
Online Access:	https://ir.uitm.edu.my/id/eprint/1903/1/TM_SHARIFUL%20AMRAN%20ABD%20RAHMAN%20AC%2001_5%201.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.1903
record_format	uketd_dc
spelling	my-uitm-ir.19032022-04-04T03:54:08Z Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman 2001 Abd Rahman, Shariful Amran Cash handbook. Cash flow HG Finance This study was carried out to examine whether cash flow can be a good predictor to debt restructuring companies. Sixty companies of Kuala Lumpur Stock Exchange (KLSE) have been identified as a sample in the current study. Thirty companies were classified as debt restructuring and another 30 matching companies were classified as non-debt restructuring companies. The classification was done in order to determine the differences between cash flow related ratios such as cash flow changes, cash flow over total debt, cash flow over total assets, cash flow over current liabilities and cash flow per share issued. The study hypothesized that the means for the cash flow based ratios have no significant difference between debt restructuring and non-debt restructuring companies. Based on trend analysis, there is no obvious pattern obtained from the graph plotted using average figure for each of the cash flow related ratios. Trend analysis and Mann- Whitney U test show that no significant difference exists between the means for debt restructuring and non-debt restructuring companies for all the cash flow related ratios. The results from stepwise logistic regression analysis further strengthen the hypothesis that the cash flow information does not have predictive power. Even though cash flow information has no predictive ability to forecast financial distress, it is useful for inter-company comparison. 2001 Thesis https://ir.uitm.edu.my/id/eprint/1903/ https://ir.uitm.edu.my/id/eprint/1903/1/TM_SHARIFUL%20AMRAN%20ABD%20RAHMAN%20AC%2001_5%201.pdf text en public masters Universiti Teknologi MARA Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Cash handbook Cash flow HG Finance
spellingShingle	Cash handbook Cash flow HG Finance Abd Rahman, Shariful Amran Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman
description	This study was carried out to examine whether cash flow can be a good predictor to debt restructuring companies. Sixty companies of Kuala Lumpur Stock Exchange (KLSE) have been identified as a sample in the current study. Thirty companies were classified as debt restructuring and another 30 matching companies were classified as non-debt restructuring companies. The classification was done in order to determine the differences between cash flow related ratios such as cash flow changes, cash flow over total debt, cash flow over total assets, cash flow over current liabilities and cash flow per share issued. The study hypothesized that the means for the cash flow based ratios have no significant difference between debt restructuring and non-debt restructuring companies. Based on trend analysis, there is no obvious pattern obtained from the graph plotted using average figure for each of the cash flow related ratios. Trend analysis and Mann- Whitney U test show that no significant difference exists between the means for debt restructuring and non-debt restructuring companies for all the cash flow related ratios. The results from stepwise logistic regression analysis further strengthen the hypothesis that the cash flow information does not have predictive power. Even though cash flow information has no predictive ability to forecast financial distress, it is useful for inter-company comparison.
format	Thesis
qualification_level	Master's degree
author	Abd Rahman, Shariful Amran
author_facet	Abd Rahman, Shariful Amran
author_sort	Abd Rahman, Shariful Amran
title	Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman
title_short	Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman
title_full	Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman
title_fullStr	Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman
title_full_unstemmed	Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman
title_sort	empirical study on the usage of cash flow statement as a tool to predict company financial distress / shariful amran abd rahman
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2001
url	https://ir.uitm.edu.my/id/eprint/1903/1/TM_SHARIFUL%20AMRAN%20ABD%20RAHMAN%20AC%2001_5%201.pdf
_version_	1783733066274963456

Empirical study on the usage of cash flow statement as a tool to predict company financial distress / Shariful Amran Abd Rahman

Similar Items