Identifying Financial Distress Firms: A Case Study of Malaysia�s Government Linked Companies (GLC)

Full Text	Pdf
Author	Ahmad Khaliq, Basheer Hussein Motawe Altarturi, Hassanudin Mohd Thas Thaker, Md Yousuf Harun, Nurun Nahar
ISSN	2307-2466
On Pages	141-150
Volume No.	3
Issue No.	3
Issue Date	May 01, 2020
Publishing Date	May 01, 2020
Keywords	Financial Distress, GLC, Z score

Abstract

The unhealthy financial state can be a massive and can cause long term distress which can result to restrictions of investments activities, capital flows and performance of firms. Thus it is vital for organizations to identify the reasoning that may lead to a corporate failure and take measures accordingly to refrain from such condition. Thus, this present study addresses the financial distress measurement among 30 GLC�s listed companies in Bursa Malaysia over the period of five years (2008 until 2012). This paper asses the financial distress determinant measured by Z score statistics model. Further on, determinant such as current ratio and debt ratio were identified. Results show that there is significant relationship between both variables and Z � Scores that determine financial distressed of the GLC.

Back