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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Main Author: Mohamed Sulaiman, Mohamed Sulaiman
Format: Article
Language:English
Published: Asian Academy of Management (AAM) 2001
Subjects:
Online Access:http://eprints.usm.my/35473/
http://eprints.usm.my/35473/1/6-1-7.pdf
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author Mohamed Sulaiman, Mohamed Sulaiman
author_facet Mohamed Sulaiman, Mohamed Sulaiman
author_sort Mohamed Sulaiman, Mohamed Sulaiman
building USM Institutional Repository
collection Online Access
description 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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publishDate 2001
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spelling usm-354732017-07-10T07:47:00Z http://eprints.usm.my/35473/ Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis Mohamed Sulaiman, Mohamed Sulaiman HD28-70 Management. Industrial Management 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. Asian Academy of Management (AAM) 2001 Article PeerReviewed application/pdf en http://eprints.usm.my/35473/1/6-1-7.pdf Mohamed Sulaiman, Mohamed Sulaiman (2001) Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis. Asian Academy of Management Journal (AAMJ), 6 (1). pp. 1-20. ISSN 1394-2603 http://web.usm.my/aamj/6.1.2001/6-1-7.pdf
spellingShingle HD28-70 Management. Industrial Management
Mohamed Sulaiman, Mohamed Sulaiman
Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis
title Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis
title_full Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis
title_fullStr Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis
title_full_unstemmed Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis
title_short Predicting Corporate Failure In Malaysia: An Application Of The Logit Model To Financial Ratio Analysis
title_sort predicting corporate failure in malaysia: an application of the logit model to financial ratio analysis
topic HD28-70 Management. Industrial Management
url http://eprints.usm.my/35473/
http://eprints.usm.my/35473/
http://eprints.usm.my/35473/1/6-1-7.pdf