The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad

Most studies on bankruptcy prediction try to classify bankrupt firms from a pool of firms using financial ratios, macroeconomic variables and firms' nonfinancial information. As the financial and non-financial information are mostly collected from the financial statements, published at the end...

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Main Authors: Nayan, Asmahani, Ahmad, Abd Razak
Format: Research Reports
Language:English
Published: 2014
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/35053/
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author Nayan, Asmahani
Ahmad, Abd Razak
author_facet Nayan, Asmahani
Ahmad, Abd Razak
author_sort Nayan, Asmahani
building UiTM Institutional Repository
collection Online Access
description Most studies on bankruptcy prediction try to classify bankrupt firms from a pool of firms using financial ratios, macroeconomic variables and firms' nonfinancial information. As the financial and non-financial information are mostly collected from the financial statements, published at the end of the financial years, the information will be obsolete by the time they are being used to measure the financial health of firms. To overcome this problem we propose a hybrid model to include information taken from the stock market price information (SMPI) of the firms to estimate the probability of firms' failure. The aim of the work is to conclude why SMPI is or is not a good contributor to the model and to determine how efficient is the proposed model compared to the z-score model used by commercial banks.
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institution Universiti Teknologi MARA
institution_category Local University
language English
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publishDate 2014
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spelling uitm-350532021-12-01T03:01:21Z https://ir.uitm.edu.my/id/eprint/35053/ The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad Nayan, Asmahani Ahmad, Abd Razak Credit. Debt. Loans Stock price indexes. Stock quotations Most studies on bankruptcy prediction try to classify bankrupt firms from a pool of firms using financial ratios, macroeconomic variables and firms' nonfinancial information. As the financial and non-financial information are mostly collected from the financial statements, published at the end of the financial years, the information will be obsolete by the time they are being used to measure the financial health of firms. To overcome this problem we propose a hybrid model to include information taken from the stock market price information (SMPI) of the firms to estimate the probability of firms' failure. The aim of the work is to conclude why SMPI is or is not a good contributor to the model and to determine how efficient is the proposed model compared to the z-score model used by commercial banks. 2014-11 Research Reports NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/35053/1/35053.pdf Nayan, Asmahani and Ahmad, Abd Razak (2014) The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad. (2014) [Research Reports] (Unpublished)
spellingShingle Credit. Debt. Loans
Stock price indexes. Stock quotations
Nayan, Asmahani
Ahmad, Abd Razak
The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad
title The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad
title_full The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad
title_fullStr The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad
title_full_unstemmed The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad
title_short The performance of Logit Model versus Altman's Z-score model in predicting bankruptcy of large industrial product firms in Malaysia / Asmahani Nayan and Abd Razak Ahmad
title_sort performance of logit model versus altman's z-score model in predicting bankruptcy of large industrial product firms in malaysia / asmahani nayan and abd razak ahmad
topic Credit. Debt. Loans
Stock price indexes. Stock quotations
url https://ir.uitm.edu.my/id/eprint/35053/