The Problem of Bankruptcy in Listed Companies (original) (raw)
Related papers
Predicting Bankruptcy Using Financial Indicators
International Journal of Business Marketing and Management (IJBMM), 2022
All companies are the topic to the bankruptcy risks. If we look at the definition, a bankruptcy risk is the business' disability to deal with payable responsibilities. In the recent past, as a consequence of the dynamization of the financial and economic action of different firms, it has become essential to obtain precise information about bankruptcy. The leading objective of this paper is to explore the impact if financial performance indicators on bankruptcy threat for the companies from our dataset. In order to summarize this analysis, I use a multiple regression because it is important to verify if some financial indicators could have an impact on bankruptcy. The software used is IBM SPSS Statistics, Also, I present descriptive statistics that show a general overview for the variables. The variables that are in the center of analysis Return on Assets, Return on Equity. Gross Profit to Sales and Total Asset Turnover.
diaGnoSticS of banKruPtcy tHreat to enterPriSeS
The prepared diagnostics of bankruptcy threatening to the enterprises is submitted in the present thesis. Herein, bankruptcy threatening to the enterprises is being diagnosed as per three stages, i.e. the condition of the enterprise and the reasons, which have determined such condition, are being gradually concretized. The financial condition of the enterprises and the threat of bankruptcy are being evaluated at the first stage by applying the integrated model, which assists in achieving the generalized evaluation of the condition. The relative financial indices of the enterprise are being analyzed at the second stage seeking for diagnosing the problematic fields of the enterprise. The third stage, at which the absolute financial indices are being analyzed, is aimed at ascertaining the reasons, which have determined the condition of the enterprise. The size of the crisis, its activity factors are ascertained considering evaluation indices of the enterprise condition; they allow selecting substantially the bankruptcy prevention measures out of the possible leading set of internal and external measures.
Annals - Economy Series, 2017
In the present, risks are always present, but this thing doesn’t mean that the society can’t carry on the economic activity in conditions of a favorable result. Through the risks to which the entity is subject, an important place is the risk of bankruptcy. The level of this risk can be determined by using of large number of liquidity and solvability indicators on the base of dates from the balance of accounts and from the profit and loosing cont. In this paper is analyzed by comparison the risk of bankruptcy of companies listed at Bucharest Stock Exchange from three sectors of activity: production, commerce and tourism. It is analyzed the evolution of score Z, indicator representative for the risk of bankruptcy, on a period of 14 years (2002-2015), enough for every society and sector. The sample of 15 enterprises has been formed on basis of information available for this research. After analysis of results, we notice that the best results concerning the risk of bankruptcy are record...
2014
This paper presents issues related to determining the bankruptcy risk for 64 companies listed on the Bucharest Stock Exchange.The purpose of this paper is to determine the percentage of companies falling within the normal range. In the introduction, we set the goal, the research methodology, and the novelty value of this work. Hereinafter, we presented different views of risk concepts, bankruptcy, solvency and liquidity. After that, based on theoretical presentations, a case study was conducted to determine the solvency and liquidity ratios. In the end, on the basis of the above considerations, the conclusions were established and some proposals were listed.
ANALYSIS AND PROGNOSTICATION OF BANKRUPTCY AMONG BSE (BOMBAY STOCK EXCHANGE INDIA) LISTED COMPANIES
Granthaalayah Publications and Printers, 2022
When a company faces difficulty in maintaining stability in financial performance of the company, there is a vast chances of bankruptcy occurrence. There are two possible ways when the company cannot financially survive, one is debt restructuring and another one is proceeding for bankruptcy. The objective of the research is to predict the sample companies which have the chance of bankruptcy or not. The research design and sampling method for this project is descriptive research and non-probability sampling method. Using Sample size of 186 Non-Banking Financial companies’ secondary data that is five years financial report, the Altman Z score analysis (Multi Discriminant Analysis) was conducted with a help of Microsoft office Excel 2021. Based on the analysis results, 11 out of 186 companies were in unsafe zone in 2021. Similarly, 14 out of 186 companies were in unsafe zone in 2020, and 8 out of 186 companies were in unsafe zone in 2019.
THE PREDICTION OF COMPANY FINANCIAL PERFORMANCE BANKRUPTCY BY RATIO, STOCK AND Z-SCORE(PT MAIN TBK).
The objective of this study is to analyze The Predict of Company Financial Performance Bankruptcy By Ratio, Stock An Z-Score whether it is good or bad with PT Main TBK as the study object. Based on the study objective , the hypotheses are : 1) Campany financial performance is good if it is measurement by using the ratio analysis tool; 2) Company financial performance is good if it measured uses stock analysis tool; 3) Company financial performance is good if it uses Z-score analysis tool. The study design used was descriptive study, while the study method used was through documentation approach. The study sample is financial report from 2014 to 2017 of PT Main TBK. The sampling technique used area sampling (Sugiono,2009)). Analysis methods used were ratio analysis, stock analysis and z-score analysis to answer the hypotheses. The study result based on descriptive analysis toward variable used on company financial performance is proven to be good. The study result based based on the three analysis tools toward variable used on company financial performance is proven to be good. The three analysis result analysis toward the hypotheses test based on the empirical data of 3 hypotheses proven are the ratio analysis result toward company financial performance is proven to be good , the stock analysis toward company financial performance is proven to be good, and the Z score analysis result toward company financial performance is proven to be good.
Assessment of Bankruptcy Risk of Large Companies: European Countries Evolution Analysis
Journal of Risk and Financial Management, 2020
Assessment and estimation of bankruptcy risk is important for managers in decision making for improving a firm's financial performance, but also important for investors that consider it prior to making investment decision in equity or bonds, creditors and company itself. The aim of this paper is to improve the knowledge of bankruptcy prediction of companies and to analyse the predictive capacity of factor analysis using as basis the discriminant analysis and the following five models for assessing bankruptcy risk: Altman, Conan and Holder, Tafler, Springate and Zmijewski. Stata software was used for studying the effect of performance over risk and bankruptcy scores were obtained by year of analysis and country. Data used for non-financial large companies from European Union were provided by Amadeus database for the period 2006-2015. In order to analyse the effects of risk score over firm performance, we have applied a dynamic panel-data estimation model, with Generalized Method of Moments (GMM) estimators to regress firm performance indicator over risk by year and we have used Tobit models to infer about the influence of company performance measures over general bankruptcy risk scores. The results show that the Principal Component Analysis (PCA) used to build a bankruptcy risk scored based on discriminant analysis indices is effective for determining the influence of corporate performance over risk.
Methods of Analysis and Evaluation of the Bankruptcy Risk
2007
The profitableness of an enterprise cannot be appreciated irrespective of the risks wherewith this is confronting, risks corresponding to economic and financial profitableness: the economic risk, carried out into organizational lever effect and the financial risk, in terms of the negative lever. The financial lever deepens the economic risk, turning into a greater vulnerability of treasury (to the outgoings concerning
The Analysis of Fundamental Variables and Macro Economic Variables in Predicting Financial Distress
Management Analysis Journal, 2020
Financial distress is a condition where the company is experiencing financial difficulties prior to bankruptcy. This study aims to identify and explain the influence of the fundamental variables and macroeconomic variables in predicting the probability of financial distress. Based on the eight variables used, current ratio, debt to assets ratio, return on equity and total asset turnover ratio is a fundamental variable. While the sensitivity of inflation, exchange rate sensitivity and interest rate sensitivity included in macroeconomic variables. The population in this study are all porperti and real estate company listed on the Stock Exchange in 2014-2018. The sample selection using purposive sampling technique, acquired 23 companies in the sample with the five companies in the category of financial distress and 18 companies in the category of non financial distress. The analytical method used is logistic regression and sensitivity analysis. The results showed that the variable curr...
https://www.ijrrjournal.com/IJRR\_Vol.5\_Issue.11\_Nov2018/Abstract\_IJRR0011.html, 2018
Stakeholders should understand bankruptcy prediction of a company as an early warning system for the possibility of bankruptcy or financial problem that will always be encountered by the company in the future. The objective of the research was to analyze the influence of the fundamental factors such as financial ratio (measured from liquidity, profitability, solvability, and activity), intellectual capital (measured from Value Added Intellectual Capital / VACA), Value Added Human Capital/VAHU, Structural Capital Value Added/ STAVA, and Corporate Governance Mechanism (measured through Board of Directors, Board of Commissionaires, Managerial Ownership, institutional ownership, independent commissionaire, and auditing committee) on the bankruptcy prediction of the mining companies listed on BEI (the Indonesian Stock Exchange). The analysis used to test the variables was Chow test (F-test) and Hausman test to test the significance and properness of the model as well as its fixed effect to influence financial ratio, intellectual capital and corporate governance on the chance of bankruptcy according to S-Score model. The samples consisted of 33 companies in mining sector listed on BEI. The data used and processed were the financial reports of the companies in the observation years from 2012 until 2016 with 165 analysis units. The results of this research demonstrated that, simultaneously, the fundamental factors such as financial ratio, intellectual capital, and Corporate Governance had some influence on the bankruptcy prediction. Partially, financial ratio (Liquidity, Solvability and Activity), Intellectual Capital (VACA and VAHU), and Corporate Governance (Director Size) had negative and significant influence on bankruptcy prediction. STVA and managerial Ownership had positive and significant influence on the bankruptcy prediction. Meanwhile, Profitability, Commissionaires Size, Institutional Ownership, and Auditing Committee did not have any significant influence on the bankruptcy prediction.