Predicting Financial Distress based on Corporate Actions

In spite of abundant literature on financial distress prediction modeling, corpus of empirical work on predictive capacity of corporate actions is scant. The prevalent norm of using accounting information suffers from being out-dated quickly, whereas corporate actions of firms are typically disclose...

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Main Author:	Mohamad, Azhar
Format:	Conference or Workshop Item
Language:	English English
Published:	2016
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/50541/ http://irep.iium.edu.my/50541/2/Legoland_conference_-_proof_of_attendance.pdf http://irep.iium.edu.my/50541/1/Legoland_GBSE_Predicting_Financial_Distress.pdf

id	iium-50541
recordtype	eprints
spelling	iium-505412016-05-04T14:13:25Z http://irep.iium.edu.my/50541/ Predicting Financial Distress based on Corporate Actions Mohamad, Azhar HG4001 Financial management. Business finance. Corporation finance. In spite of abundant literature on financial distress prediction modeling, corpus of empirical work on predictive capacity of corporate actions is scant. The prevalent norm of using accounting information suffers from being out-dated quickly, whereas corporate actions of firms are typically disclosed promptly. This study investigates which corporate actions can help to predict financial distress and to examine whether prediction of financial distress using corporate actions can improve classification accuracy vis-à-vis accounting ratios. Additional comparison is carried out based on a combination of accounting ratios and corporate actions as well as models wherein information is incorporated separately. We find that the frequency of new issue of capital and frequency of changes in Audit Committee are significant predictors of financial distress. Furthermore, we also find that Working Capital to Total Assets Ratio and Asset Turnover Ratio are reliable predictors of financial distress among the accounting ratios. 2016-04 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/50541/2/Legoland_conference_-_proof_of_attendance.pdf application/pdf en http://irep.iium.edu.my/50541/1/Legoland_GBSE_Predicting_Financial_Distress.pdf Mohamad, Azhar (2016) Predicting Financial Distress based on Corporate Actions. In: 3rd International Conference on Global Business & Social Entrepreneurship, 23-24 April 2016, Johor Bahru, Johor. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Mohamad, Azhar Predicting Financial Distress based on Corporate Actions
description	In spite of abundant literature on financial distress prediction modeling, corpus of empirical work on predictive capacity of corporate actions is scant. The prevalent norm of using accounting information suffers from being out-dated quickly, whereas corporate actions of firms are typically disclosed promptly. This study investigates which corporate actions can help to predict financial distress and to examine whether prediction of financial distress using corporate actions can improve classification accuracy vis-à-vis accounting ratios. Additional comparison is carried out based on a combination of accounting ratios and corporate actions as well as models wherein information is incorporated separately. We find that the frequency of new issue of capital and frequency of changes in Audit Committee are significant predictors of financial distress. Furthermore, we also find that Working Capital to Total Assets Ratio and Asset Turnover Ratio are reliable predictors of financial distress among the accounting ratios.
format	Conference or Workshop Item
author	Mohamad, Azhar
author_facet	Mohamad, Azhar
author_sort	Mohamad, Azhar
title	Predicting Financial Distress based on Corporate Actions
title_short	Predicting Financial Distress based on Corporate Actions
title_full	Predicting Financial Distress based on Corporate Actions
title_fullStr	Predicting Financial Distress based on Corporate Actions
title_full_unstemmed	Predicting Financial Distress based on Corporate Actions
title_sort	predicting financial distress based on corporate actions
publishDate	2016
url	http://irep.iium.edu.my/50541/ http://irep.iium.edu.my/50541/2/Legoland_conference_-_proof_of_attendance.pdf http://irep.iium.edu.my/50541/1/Legoland_GBSE_Predicting_Financial_Distress.pdf
first_indexed	2023-09-18T21:11:26Z
last_indexed	2023-09-18T21:11:26Z
_version_	1777411278659125248

Predicting Financial Distress based on Corporate Actions

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