Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu

This study is descriptive in nature and the purpose of this study was to confirm whether financial ratio applicable in order to predict financial distress by using logistic regression as a model that predict corporate failures in Malaysia over a five year period covering the from 19 companies that w...

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Main Author:	Busu, Nur Nazifa Murfiqah
Format:	Thesis
Language:	English
Published:	2017
Subjects:	Finance and cycles Financial crises Convergence (Economics)
Online Access:	https://ir.uitm.edu.my/id/eprint/93095/1/93095.pdf
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id	my-uitm-ir.93095
record_format	uketd_dc
spelling	my-uitm-ir.930952024-04-23T00:56:24Z Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu 2017 Busu, Nur Nazifa Murfiqah Finance and cycles. Financial crises. Convergence (Economics) This study is descriptive in nature and the purpose of this study was to confirm whether financial ratio applicable in order to predict financial distress by using logistic regression as a model that predict corporate failures in Malaysia over a five year period covering the from 19 companies that were analyzed with an initial 14 financial ratios. This paper also determining whether all the PN 17 companies that are listed are financial failure. Secondary data was used and these were obtained through review of literature include journal and published financial report. E-views software was used to carry out the statistical analysis. This study choose the ratios based on the frequency used in previous studies. The result of study indicate there are three ratio out of 14 ratios chosen have significant relationship toward financial distress which is one ratio from profitability ratio (NI/SALES); one ratio (SALES/TA) from the liquidity ratio; and one ratio (TD/TA) from the leverage ratio. A classification results in using logistic regression showed high average accuracy rates of 78.87 percent for the analysis for each of the five years. Thus, this study shows that even with more advanced statistical tools more popularly used recently like multivariate discriminant analysis, logistic regression can still be effective and reliable as a statistical tool. Next, it was found that not all PN 17 companies are financial failure. This study was conducted using the recent data on public listed companies in Malaysia. Hence, this model is more relevant in predicting corporate failure in Malaysia. 2017 Thesis https://ir.uitm.edu.my/id/eprint/93095/ https://ir.uitm.edu.my/id/eprint/93095/1/93095.pdf text en public Universiti Teknologi MARA, Johor Faculty of Business Management Romli, Nurulashikin Mohd Yousop, Nur Liyana
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Romli, Nurulashikin Mohd Yousop, Nur Liyana
topic	Finance and cycles Financial crises Convergence (Economics)
spellingShingle	Finance and cycles Financial crises Convergence (Economics) Busu, Nur Nazifa Murfiqah Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu
description	This study is descriptive in nature and the purpose of this study was to confirm whether financial ratio applicable in order to predict financial distress by using logistic regression as a model that predict corporate failures in Malaysia over a five year period covering the from 19 companies that were analyzed with an initial 14 financial ratios. This paper also determining whether all the PN 17 companies that are listed are financial failure. Secondary data was used and these were obtained through review of literature include journal and published financial report. E-views software was used to carry out the statistical analysis. This study choose the ratios based on the frequency used in previous studies. The result of study indicate there are three ratio out of 14 ratios chosen have significant relationship toward financial distress which is one ratio from profitability ratio (NI/SALES); one ratio (SALES/TA) from the liquidity ratio; and one ratio (TD/TA) from the leverage ratio. A classification results in using logistic regression showed high average accuracy rates of 78.87 percent for the analysis for each of the five years. Thus, this study shows that even with more advanced statistical tools more popularly used recently like multivariate discriminant analysis, logistic regression can still be effective and reliable as a statistical tool. Next, it was found that not all PN 17 companies are financial failure. This study was conducted using the recent data on public listed companies in Malaysia. Hence, this model is more relevant in predicting corporate failure in Malaysia.
format	Thesis
author	Busu, Nur Nazifa Murfiqah
author_facet	Busu, Nur Nazifa Murfiqah
author_sort	Busu, Nur Nazifa Murfiqah
title	Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu
title_short	Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu
title_full	Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu
title_fullStr	Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu
title_full_unstemmed	Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu
title_sort	predicting on the financial distress by using the financial ratio / nur nazifa murfiqah busu
granting_institution	Universiti Teknologi MARA, Johor
granting_department	Faculty of Business Management
publishDate	2017
url	https://ir.uitm.edu.my/id/eprint/93095/1/93095.pdf
_version_	1804889873479368704

Predicting on the financial distress by using the financial ratio / Nur Nazifa Murfiqah Busu

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