Financial situation of PN17 companies listed in the Malaysian Stock Exchange
A Practice Note 17 (PN17) Company is a listed company in the Malaysian Stock Exchange that is financially distressed or does not have a core business or has failed to meet minimum capital or equity (Less than 25% of the paid up capital). Financial ratio analysis method can be used to detect th...
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| Format: | Thesis |
| Language: | English English English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://eprints.uthm.edu.my/2248/1/24p%20ALI%20ABUSALAH%20ELMABROK%20MOHAMMED.pdf http://eprints.uthm.edu.my/2248/2/ALI%20ABUSALAH%20ELMABROK%20MOHAMMED%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/2248/3/ALI%20ABUSALAH%20ELMABROK%20MOHAMMED%20WATERMARK.pdf |
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| Summary: | A Practice Note 17 (PN17) Company is a listed company in the Malaysian Stock
Exchange that is financially distressed or does not have a core business or has failed
to meet minimum capital or equity (Less than 25% of the paid up capital). Financial
ratio analysis method can be used to detect the failure of this company. As of 9th
August 2010, there are still thirty four companies listed on Malaysian Stock
Exchange classified under PN17 List. These companies have entered into PN 17 list
in accordance with existing standards. There are also investors who do not know the
status of these listed companies. A real and full attention has not been given yet for
these companies. Analytical studies and scientific researches are almost still lacking
on PN17 Companies listed in the Malaysian Stock Exchange. The aims of this
research work is to examine the differences between the financial liquidity ratios
(Current, Quick, Cash Ratio) and Altman's Z-score in determining the financial
failure of companies, that is using financial ratios and Altman Z Score to examine
whether there is different between PN17 companies and Non-PN17 listed in the
Malaysian Stock Exchange. It also aimed to determine whether are all the PN17
Companies listed in the Malaysian Stock Exchange financial failure companies, to
explore and report the financial situation of companies listed on Malaysian Stock
Exchange. The available data collected from the library of Malaysian Stock
Exchange covering the period from 2003 to 2009 were used in the analysis. This
study answered the research questions formulated. Financial Liquidity ratios and
Altman Z-score can be used to detect financial distress of companies, and it is
important to compare ratios with the industry average or with a competitor in the
same sector. Not all the PN17 Companies are financial failure Companies, It was
found that there are financial difficulties companies still listed among the Non-PN17
list. Companies should emphasize on the issue of accounting disclosure. |
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