2025_Determinants of Financial Distress: Evidence from Malaysia
| Format: | General Document |
|---|
| _version_ | 1860798357060976640 |
|---|---|
| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection1130980 |
| copyright | Copyright©PWB2026 |
| country | Malaysia |
| date | 2025-09-10 |
| format | General Document |
| id | 17445 |
| institution | UniSZA |
| originalfilename | DETERMINANTS OF FINANCIAL DISTRESS EVIDENCE FROM MALAYSIA (MASTER_2025).pdf |
| person | Tamer Moqbel Ali Al-Mohsen |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=17445 |
| sourcemedia | Server storage Scanned document |
| spelling | 17445 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=17445 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection1130980 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.7 Public Access Server storage Scanned document Universiti Sultan Zainal Abidin Universiti Sultan Zainal Abidin 2025-09-10 Audit Quality 196 Dissertations, Academic Microsoft® Word 2021 Financial Stability Trade-Off Theory Copyright©PWB2026 Thesis Tamer Moqbel Ali Al-Mohsen Financial Indicators Financial Distress Bursa Malaysia Publicly Listed Companies Debt Repayment Ability Management Performance Panel Data Analysis Financial distress -- Malaysia Corporations -- Finance -- Malaysia Auditing -- Quality control -- Malaysia Public companies -- Malaysia -- Finance Corporate governance -- Malaysia Risk management -- Malaysia Finance -- Mathematical models 2025_Determinants of Financial Distress: Evidence from Malaysia Financial indicators play a very important role in predicting financial problems and making businesses stronger. After the global financial crisis, people became more interested in the financial health of Malaysian public companies. This interest was about understanding the relationship between different financial indicators and the company's financial stability. The main goal of this research was to investigate how different financial indicators (such as management performance ability, debt repayment ability, financial structure ability, and audit quality) might affect Malaysian public companies' financial problems. This research analyzed data from 814 publicly listed companies in Bursa Malaysia over a six-year period, using annual reports from 2016 to 2021, resulting in a panel data set of 4,884 firm-year observations that were examined through regression analysis. Result: The study indicates that there are important connections between financial indicators and levels of financial distress. It showed that both debt repayment ability and financial structure were negatively associated with financial distress. This suggests that a varied financial structure and a strong capacity to repay debt are crucial for maintaining financial stability. The study also discovered that high-quality audits significantly reduced financial distress, reinforcing the essential role that competent, independent auditors play in financial management. Meanwhile, this study also indicated that management performance ability showed a strong positive relationship with financial distress and was not consistent with the trade-off theory. This research suggests a new mechanism for how specific financial indicators can predict and reduce financial distress in Malaysian publicly listed companies. The study discovered that effective management, strong financial structures, the ability to repay debts, and maintaining high audit quality can significantly lower the risk of financial distress. The study also found that companies that were efficient at repaying debt, had strong financial structures, and maintained high-quality audits were less likely to face financial problems. Therefore, the research suggests that regulatory bodies and other stakeholders should pay serious attention to these financial indicators to prevent potential financial misconduct and ineffective management. uuid:5054BA09-E8C9-496B-AAEA-C8EF74A0DEDD DETERMINANTS OF FINANCIAL DISTRESS EVIDENCE FROM MALAYSIA (MASTER_2025).pdf |
| spellingShingle | 2025_Determinants of Financial Distress: Evidence from Malaysia |
| state | Terengganu |
| subject | Dissertations, Academic Financial distress -- Malaysia Corporations -- Finance -- Malaysia Auditing -- Quality control -- Malaysia Public companies -- Malaysia -- Finance Corporate governance -- Malaysia Risk management -- Malaysia Finance -- Mathematical models |
| summary | Financial indicators play a very important role in predicting financial problems and making businesses stronger. After the global financial crisis, people became more interested in the financial health of Malaysian public companies. This interest was about understanding the relationship between different financial indicators and the company's financial stability. The main goal of this research was to investigate how different financial indicators (such as management performance ability, debt repayment ability, financial structure ability, and audit quality) might affect Malaysian public companies' financial problems. This research analyzed data from 814 publicly listed companies in Bursa Malaysia over a six-year period, using annual reports from 2016 to 2021, resulting in a panel data set of 4,884 firm-year observations that were examined through regression analysis. Result: The study indicates that there are important connections between financial indicators and levels of financial distress. It showed that both debt repayment ability and financial structure were negatively associated with financial distress. This suggests that a varied financial structure and a strong capacity to repay debt are crucial for maintaining financial stability. The study also discovered that high-quality audits significantly reduced financial distress, reinforcing the essential role that competent, independent auditors play in financial management. Meanwhile, this study also indicated that management performance ability showed a strong positive relationship with financial distress and was not consistent with the trade-off theory. This research suggests a new mechanism for how specific financial indicators can predict and reduce financial distress in Malaysian publicly listed companies. The study discovered that effective management, strong financial structures, the ability to repay debts, and maintaining high audit quality can significantly lower the risk of financial distress. The study also found that companies that were efficient at repaying debt, had strong financial structures, and maintained high-quality audits were less likely to face financial problems. Therefore, the research suggests that regulatory bodies and other stakeholders should pay serious attention to these financial indicators to prevent potential financial misconduct and ineffective management. |
| title | 2025_Determinants of Financial Distress: Evidence from Malaysia |
| title_full | 2025_Determinants of Financial Distress: Evidence from Malaysia |
| title_fullStr | 2025_Determinants of Financial Distress: Evidence from Malaysia |
| title_full_unstemmed | 2025_Determinants of Financial Distress: Evidence from Malaysia |
| title_short | 2025_Determinants of Financial Distress: Evidence from Malaysia |
| title_sort | 2025_determinants of financial distress: evidence from malaysia |