The determinants of firm' bankruptcy / Nurul Ayuni Shihabuddin
Purpose The aim of this study is to identify the determinants of firm' bankruptcy in term of the solvency of the company, the profitability, the liquidity, the efficiency and the market performance for the company to survive - why it can declare as bankruptcy. Methodology - Use the credit as...
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| Format: | Thesis |
| Language: | English |
| Published: |
2017
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| Subjects: | |
| Online Access: | https://ir.uitm.edu.my/id/eprint/93084/2/93084.pdf |
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| Summary: | Purpose The aim of this study is to identify the determinants of firm' bankruptcy in term of the solvency of the company, the profitability, the liquidity, the efficiency and the market performance for the company to survive - why it can declare as bankruptcy.
Methodology - Use the credit assessment methodology in order to look the company's ability in their general debt and creditworthiness of an organization. Use the Altman's model to measure the statistical and numerical of data collected from the factors of firm' bankruptcy to see more how the solvency, the profitability, the liquidity, the efficiency and the market performance of the company are affected.
Findings -The research indicates that the market performance decline for the company, the solvency, the profitability, the liquidity and the efficiency of the company has a relationship on the determinants of firm' bankruptcy where it will give a positive effects on that company totally.
Research limitations — A limitations of this study is the data is very limited because bankruptcy is a sensitive subject for touted to outsiders. Then, we do not know the accuracy of the data because to get a true data usually we believe from the subscribe system. Next, the lack of information from previous study also give a little difficulties in this research because the past studies are important to support my ideas and can be as evidence.
Practical Implications - For companies practitioners, they will see that where the company going to be with the results obtained and will know the bankruptcy risk in future because they can predict the situation by looking the differences between the value of indicators at successful companies and at unhealthy companies.
Originality / Value Financial literacy are important to help the parties who are responsible in particular for finding a way out and not to be a bankrupt one. Nowadays, too many companies who have a problem, lead them to the bankruptcy - why this is happening. The theory can explains how these factor affect the firm' bankruptcy and what are the major factor that led to this situation -the result will unravel all the question that cross in people's mind.
Paper Type - Research Paper |
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