PREDICTING CORPORATE FINANCIAL DISTRESS THE CASE OF PAKISTAN

http://dx.doi.org/10.31703/gssr.2018(III-III).28      10.31703/gssr.2018(III-III).28      Published : Sep 3
Authored by : IlyasAhmad , ZahidAli , MuhammadUsman

28 Pages : 488-503

References

  • Almamy, J., Aston, J., & Ngwa, L. N. (2016). An evaluation of Altman's Z-score using cash flow ratio to predict corporate failure amid the recent financial crisis: Evidence from the UK. Journal of Corporate Finance, 36, 278-285.
  • Altman, E. I. (2002). Bankruptcy, credit risk, and high yield junk bonds: WileyBlackwell.
  • Campbell, J. Y., Hilscher, J., & Szilagyi, J. (2008). In search of distress risk. The journal of Finance, 63(6), 2899-2939.
  • Campello, M., Graham, J. R., & Harvey, C. R. (2010). The real effects of financial constraints: Evidence from a financial crisis. Journal of Financial Economics, 97(3), 470-487.
  • Carcello, J. V., Hermanson, D. R., & Huss, H. F. (1995). Temporal changes in bankruptcy-related reporting. Auditing, 14(2), 133.
  • Carmichael, D. R. (1972). The auditor's reporting obligation: the meaning and implementation of the fourth standard of reporting (Vol. 1): American Institute of Certified Public Accountants.
  • Chen, Y., Weston, J. F., & Altman, E. I. (1995). Financial distress and restructuring models. Financial Management, 57-75.
  • Chira, I., & Marciniak, M. (2014). Risk change during crises: How do purely local companies differ from cross-listed firms? Evidence from the European crisis of 2010-2012. Journal of Economics and Business, 74, 11-23.
  • Dichev, I. D. (1998). Is the risk of bankruptcy a systematic risk? The Journal of Finance, 53(3), 1131-1147.
  • Ferguson, M. F., & Shockley, R. L. (2003). Equilibrium
  • Foster, G. (1978). Financial Statement Analysis, 2/e: Pearson Education India.
  • Graham, J. R. (2000). How big are the tax benefits of debt? The journal of Finance, 55(5), 1901-1941.
  • Grice, J. S., & Dugan, M. T. (2003). Re-estimations of the Zmijewski and Ohlson bankruptcy prediction models. Advances in Accounting, 20, 77-93.
  • Griffin, J. M., & Lemmon, M. L. (2002). Book-to-market equity, distress risk, and stock returns. The journal of Finance, 57(5), 2317-2336.
  • Halpern, P., Kieschnick, R., & Rotenberg, W. (2009). Determinants of financial distress and bankruptcy in highly levered transactions. The Quarterly Review of Economics and Finance, 49(3), 772-783.
  • JAFFE, F. F., WESTERFIELD, R. W., & ROSS, S. A. (2002). Administração financeira. Corporate Finance, 2.
  • Jahanzeb, A., Naslmosavi, S., & Memon, P. A. FINANCIAL DISTRESS FORECASTING OF NON-FINANCIAL FIRMS: A CASE OF PAKISTAN. analysis, 21(22), 23-24.
  • Jostarndt, P. (2007). Financial distress, corporate control, and management turnover: A German panel analysis. Financial Distress, Corporate Restructuring and Firm Survival: An Empirical Analysis of German Panel Data, 25-70.
  • Katz, S., Lilien, S., & Nelson, B. (1985). Stock market behavior around bankruptcy model distress and recovery predictions. Financial Analysts Journal, 70- 74.
  • Kumar, R. G., & Kumar, K. (2012). A comparison of bankruptcy models. International Journal of Marketing, Financial Services and Management Research, 1(4), 76-86.
  • Lasfer, M. A., Sudarsanam, P. S., & Taffler, R. J. (1996). Financial distress, asset sales, and lender monitoring. Financial Management, 57-66.
  • Louwers, T. J. (1998). The relation between going-concern opinions and the auditor's loss function. Journal of Accounting Research, 36(1), 143-156.
  • Luchtenberg, K. F., & Vu, Q. V. (2015). The 2008 financial crisis: Stock market contagion and its determinants. Research in International Business and Finance, 33, 178-203.
  • Marchesini, R., Perdue, G., & Bryan, V. (2004). Applying bankruptcy prediction models to distressed high yield bond issues. The Journal of Fixed Income, 13(4), 50-56.
  • MengYun, W., Imran, M., Zakaria, M., Linrong, Z., Farooq, M. U., & Muhammad, S. K. (2018). Impact of terrorism and political instability on equity premium: Evidence from Pakistan. Physica A: Statistical Mechanics and its Applications, 492, 1753-1762.
  • Miglani, S., Ahmed, K., & Henry, D. (2015). Voluntary corporate governance structure and financial distress: Evidence from Australia. Journal of Contemporary Accounting & Economics, 11(1), 18-30.
  • Molina, C. A. (2005). Are firms underleveraged? An examination of the effect of leverage on default probabilities. The journal of Finance, 60(3), 1427- 1459.
  • Mutchler, J. F., Hopwood, W., & McKeown, J. M. (1997). The influence of contrary information and mitigating factors on audit opinion decisions on bankrupt companies. Journal of Accounting Research, 35(2), 295-310.
  • Oude Avenhuis, J. (2013). Testing the generalizability of the bankruptcy prediction models of Altman, Ohlson and Zmijewski for Dutch listed and large nonlisted firms.
  • Persakis, A., & Iatridis, G. E. (2015). Cost of capital, audit and earnings quality under financial crisis: A global empirical investigation. Journal of international financial markets, Institutions and Money, 38, 3-24.
  • Platt, H. D., & Platt, M. B. (2002). Predicting corporate financial distress: reflections on choice-based sample bias. Journal of Economics and Finance, 26(2), 184-199.
  • Rashid, A., & Abbas, Q. (2011). Predicting bankruptcy in Pakistan. Theoretical and Applied Economics, 9(9), 103.
  • Saif H. Al Zaabi, O. (2011). Potential for the application of emerging market Zscore in UAE Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 158-173.
  • Shrieves, R. E., & Stevens, D. L. (1979). Bankruptcy avoidance as a motive for merger. Journal of Financial and Quantitative Analysis, 14(3), 501-515.
  • Sudarsanam, S., & Lai, J. (2001). Corporate financial distress and turnaround strategies: An empirical analysis. British Journal of Management, 12(3), 183-199.
  • Utrero-González, N., & Callado-Muñoz, F. J. (2015). Do investors react to corporate governance news? An empirical analysis for the Spanish market. BRQ Business Research Quarterly.
  • Wallace, W. A. (2004). Risk Assessment by Internal Auditors Using Past Research on Bankruptcy. The IIA Research Foundation.
  • Whitaker, R. B. (1999). The early stages of financial distress. Journal of Economics and Finance, 23(2), 123-132.
  • Zhao, X., Jiang, X., & Li, Z. (2015). The impact of the economic crisis on the financial performance of multinational corporations. International Review of Economics & Finance, 37, 55-68.

References

  • Almamy, J., Aston, J., & Ngwa, L. N. (2016). An evaluation of Altman's Z-score using cash flow ratio to predict corporate failure amid the recent financial crisis: Evidence from the UK. Journal of Corporate Finance, 36, 278-285.
  • Altman, E. I. (2002). Bankruptcy, credit risk, and high yield junk bonds: WileyBlackwell.
  • Campbell, J. Y., Hilscher, J., & Szilagyi, J. (2008). In search of distress risk. The journal of Finance, 63(6), 2899-2939.
  • Campello, M., Graham, J. R., & Harvey, C. R. (2010). The real effects of financial constraints: Evidence from a financial crisis. Journal of Financial Economics, 97(3), 470-487.
  • Carcello, J. V., Hermanson, D. R., & Huss, H. F. (1995). Temporal changes in bankruptcy-related reporting. Auditing, 14(2), 133.
  • Carmichael, D. R. (1972). The auditor's reporting obligation: the meaning and implementation of the fourth standard of reporting (Vol. 1): American Institute of Certified Public Accountants.
  • Chen, Y., Weston, J. F., & Altman, E. I. (1995). Financial distress and restructuring models. Financial Management, 57-75.
  • Chira, I., & Marciniak, M. (2014). Risk change during crises: How do purely local companies differ from cross-listed firms? Evidence from the European crisis of 2010-2012. Journal of Economics and Business, 74, 11-23.
  • Dichev, I. D. (1998). Is the risk of bankruptcy a systematic risk? The Journal of Finance, 53(3), 1131-1147.
  • Ferguson, M. F., & Shockley, R. L. (2003). Equilibrium
  • Foster, G. (1978). Financial Statement Analysis, 2/e: Pearson Education India.
  • Graham, J. R. (2000). How big are the tax benefits of debt? The journal of Finance, 55(5), 1901-1941.
  • Grice, J. S., & Dugan, M. T. (2003). Re-estimations of the Zmijewski and Ohlson bankruptcy prediction models. Advances in Accounting, 20, 77-93.
  • Griffin, J. M., & Lemmon, M. L. (2002). Book-to-market equity, distress risk, and stock returns. The journal of Finance, 57(5), 2317-2336.
  • Halpern, P., Kieschnick, R., & Rotenberg, W. (2009). Determinants of financial distress and bankruptcy in highly levered transactions. The Quarterly Review of Economics and Finance, 49(3), 772-783.
  • JAFFE, F. F., WESTERFIELD, R. W., & ROSS, S. A. (2002). Administração financeira. Corporate Finance, 2.
  • Jahanzeb, A., Naslmosavi, S., & Memon, P. A. FINANCIAL DISTRESS FORECASTING OF NON-FINANCIAL FIRMS: A CASE OF PAKISTAN. analysis, 21(22), 23-24.
  • Jostarndt, P. (2007). Financial distress, corporate control, and management turnover: A German panel analysis. Financial Distress, Corporate Restructuring and Firm Survival: An Empirical Analysis of German Panel Data, 25-70.
  • Katz, S., Lilien, S., & Nelson, B. (1985). Stock market behavior around bankruptcy model distress and recovery predictions. Financial Analysts Journal, 70- 74.
  • Kumar, R. G., & Kumar, K. (2012). A comparison of bankruptcy models. International Journal of Marketing, Financial Services and Management Research, 1(4), 76-86.
  • Lasfer, M. A., Sudarsanam, P. S., & Taffler, R. J. (1996). Financial distress, asset sales, and lender monitoring. Financial Management, 57-66.
  • Louwers, T. J. (1998). The relation between going-concern opinions and the auditor's loss function. Journal of Accounting Research, 36(1), 143-156.
  • Luchtenberg, K. F., & Vu, Q. V. (2015). The 2008 financial crisis: Stock market contagion and its determinants. Research in International Business and Finance, 33, 178-203.
  • Marchesini, R., Perdue, G., & Bryan, V. (2004). Applying bankruptcy prediction models to distressed high yield bond issues. The Journal of Fixed Income, 13(4), 50-56.
  • MengYun, W., Imran, M., Zakaria, M., Linrong, Z., Farooq, M. U., & Muhammad, S. K. (2018). Impact of terrorism and political instability on equity premium: Evidence from Pakistan. Physica A: Statistical Mechanics and its Applications, 492, 1753-1762.
  • Miglani, S., Ahmed, K., & Henry, D. (2015). Voluntary corporate governance structure and financial distress: Evidence from Australia. Journal of Contemporary Accounting & Economics, 11(1), 18-30.
  • Molina, C. A. (2005). Are firms underleveraged? An examination of the effect of leverage on default probabilities. The journal of Finance, 60(3), 1427- 1459.
  • Mutchler, J. F., Hopwood, W., & McKeown, J. M. (1997). The influence of contrary information and mitigating factors on audit opinion decisions on bankrupt companies. Journal of Accounting Research, 35(2), 295-310.
  • Oude Avenhuis, J. (2013). Testing the generalizability of the bankruptcy prediction models of Altman, Ohlson and Zmijewski for Dutch listed and large nonlisted firms.
  • Persakis, A., & Iatridis, G. E. (2015). Cost of capital, audit and earnings quality under financial crisis: A global empirical investigation. Journal of international financial markets, Institutions and Money, 38, 3-24.
  • Platt, H. D., & Platt, M. B. (2002). Predicting corporate financial distress: reflections on choice-based sample bias. Journal of Economics and Finance, 26(2), 184-199.
  • Rashid, A., & Abbas, Q. (2011). Predicting bankruptcy in Pakistan. Theoretical and Applied Economics, 9(9), 103.
  • Saif H. Al Zaabi, O. (2011). Potential for the application of emerging market Zscore in UAE Islamic banks. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 158-173.
  • Shrieves, R. E., & Stevens, D. L. (1979). Bankruptcy avoidance as a motive for merger. Journal of Financial and Quantitative Analysis, 14(3), 501-515.
  • Sudarsanam, S., & Lai, J. (2001). Corporate financial distress and turnaround strategies: An empirical analysis. British Journal of Management, 12(3), 183-199.
  • Utrero-González, N., & Callado-Muñoz, F. J. (2015). Do investors react to corporate governance news? An empirical analysis for the Spanish market. BRQ Business Research Quarterly.
  • Wallace, W. A. (2004). Risk Assessment by Internal Auditors Using Past Research on Bankruptcy. The IIA Research Foundation.
  • Whitaker, R. B. (1999). The early stages of financial distress. Journal of Economics and Finance, 23(2), 123-132.
  • Zhao, X., Jiang, X., & Li, Z. (2015). The impact of the economic crisis on the financial performance of multinational corporations. International Review of Economics & Finance, 37, 55-68.

Cite this article

APA

CHICAGO

    CHICAGO : Ahmad, Ilyas, Zahid Ali, and Muhammad Usman. 2018. "Predicting Corporate Financial Distress: The Case of Pakistan." Global Social Sciences Review, III (III): 488-503 doi: 10.31703/gssr.2018(III-III).28

HARVARD

    HARVARD : AHMAD, I., ALI, Z. & USMAN, M. 2018. Predicting Corporate Financial Distress: The Case of Pakistan. Global Social Sciences Review, III, 488-503.

MHRA

    MHRA : Ahmad, Ilyas, Zahid Ali, and Muhammad Usman. 2018. "Predicting Corporate Financial Distress: The Case of Pakistan." Global Social Sciences Review, III: 488-503

MLA

    MLA : Ahmad, Ilyas, Zahid Ali, and Muhammad Usman. "Predicting Corporate Financial Distress: The Case of Pakistan." Global Social Sciences Review, III.III (2018): 488-503 Print.

OXFORD

    OXFORD : Ahmad, Ilyas, Ali, Zahid, and Usman, Muhammad (2018), "Predicting Corporate Financial Distress: The Case of Pakistan", Global Social Sciences Review, III (III), 488-503

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