Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin

This study attempts to construct and test financial distress prediction model for Malaysian Companies. The samplefor this study consists of84 companies listed on Bursa Malaysia that became financially distressed in 200/ and 2002 and a matched (by industry and firm size) sample 0/ 84 financially heal...

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Main Authors:	Tew, You Hoo, Nordin, Enylina
Format:	Article
Language:	English
Published:	Institute of Research, Development and Commercialization (IRDC) 2006
Subjects:	Financial management. Business finance. Corporation finance Malaysia
Online Access:	http://ir.uitm.edu.my/id/eprint/12978/ http://ir.uitm.edu.my/id/eprint/12978/1/AJ_TEW%20YOU%20HOO%20SMRJ%2006%201.pdf

id	uitm-12978
recordtype	eprints
spelling	uitm-129782016-06-09T16:30:50Z http://ir.uitm.edu.my/id/eprint/12978/ Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin Tew, You Hoo Nordin, Enylina Financial management. Business finance. Corporation finance Malaysia This study attempts to construct and test financial distress prediction model for Malaysian Companies. The samplefor this study consists of84 companies listed on Bursa Malaysia that became financially distressed in 200/ and 2002 and a matched (by industry and firm size) sample 0/ 84 financially healthy companies. The model is constructed by employing logistic regression analysis based on pooled data of5 years prior tofinancial distress. The model isfirst derived using the estimation sample andthen tested using the validation sample. Adding to the existing research onfinancial distress prediction models, the current model utilizes measures ofshareholders' equity to total liabilities, shareholders' equity to total assets, current liabilities to total assets, total borrowings to total assets andinventory turnover. The results are encouraging, as the model developed/or predicting corporatefinancial distress in Malaysia is reliable up to 5 years prior to financial distress. II is also believed thai the prediction model can be useful to different groups of users such as policy makers, financial institutions, creditors, managers, bankers, investors and shareholders. Institute of Research, Development and Commercialization (IRDC) 2006 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/12978/1/AJ_TEW%20YOU%20HOO%20SMRJ%2006%201.pdf Tew, You Hoo and Nordin, Enylina (2006) Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin. Social and Management Research Journal, 3 (1). pp. 123-132. ISSN 1675-7017
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Financial management. Business finance. Corporation finance Malaysia
spellingShingle	Financial management. Business finance. Corporation finance Malaysia Tew, You Hoo Nordin, Enylina Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin
description	This study attempts to construct and test financial distress prediction model for Malaysian Companies. The samplefor this study consists of84 companies listed on Bursa Malaysia that became financially distressed in 200/ and 2002 and a matched (by industry and firm size) sample 0/ 84 financially healthy companies. The model is constructed by employing logistic regression analysis based on pooled data of5 years prior tofinancial distress. The model isfirst derived using the estimation sample andthen tested using the validation sample. Adding to the existing research onfinancial distress prediction models, the current model utilizes measures ofshareholders' equity to total liabilities, shareholders' equity to total assets, current liabilities to total assets, total borrowings to total assets andinventory turnover. The results are encouraging, as the model developed/or predicting corporatefinancial distress in Malaysia is reliable up to 5 years prior to financial distress. II is also believed thai the prediction model can be useful to different groups of users such as policy makers, financial institutions, creditors, managers, bankers, investors and shareholders.
format	Article
author	Tew, You Hoo Nordin, Enylina
author_facet	Tew, You Hoo Nordin, Enylina
author_sort	Tew, You Hoo
title	Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin
title_short	Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin
title_full	Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin
title_fullStr	Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin
title_full_unstemmed	Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin
title_sort	predicting corporate financial distress using logistic regression : malaysian evidence / tew you hoo and enylina nordin
publisher	Institute of Research, Development and Commercialization (IRDC)
publishDate	2006
url	http://ir.uitm.edu.my/id/eprint/12978/ http://ir.uitm.edu.my/id/eprint/12978/1/AJ_TEW%20YOU%20HOO%20SMRJ%2006%201.pdf
first_indexed	2023-09-18T22:49:39Z
last_indexed	2023-09-18T22:49:39Z
_version_	1777417458321195008

Predicting corporate financial distress using logistic regression : Malaysian evidence / Tew You Hoo and Enylina Nordin

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