Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis
A logit model that distinguishes between Malaysian firms that did and those that did not seek for court protection from their creditors is tested empirically in this research. Three factors were found to have significant discriminating power; debt ratio, interest coverage, and total asset turnove...
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| Format: | Article |
| Language: | English |
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Asian Academy of Management (AAM)
2001
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| Online Access: | http://eprints.usm.my/35473/ http://eprints.usm.my/35473/1/6-1-7.pdf |
| Summary: | A logit model that distinguishes between Malaysian firms that did and those that
did not seek for court protection from their creditors is tested empirically in this
research. Three factors were found to have significant discriminating power; debt
ratio, interest coverage, and total asset turnover. The logit model was able to
classify accurately 80.7 per cent of the firms in the estimation sample and 74.4 per
cent in the hold out sample. |
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