Financial distress prediction: A logistic regression analysis on publicly listed industrial firms in the Philippines

Clicks: 2
ID: 285752
2021
Article Quality & Performance Metrics
Overall Quality
Not rated
Combines reader engagement with the AI quality analysis. This article has not been analysed, so there is no overall score — reader engagement is measured and shown alongside.
AI Quality Assessment
Not analyzed
Readership in this journal
Steady

Ranked #2,158 of 3,757 articles by views in Malay Journal

Most read Least read

Bar heights use a square-root scale. Only the 120 most-read articles are drawn; the journal has 3,757 in total.

Mint this article as an NFT
Not yet minted

Create a permanent, verifiable on-chain record of this article on the Scimatic Network. The NFT is held in your Journament account, and you can withdraw it to your own wallet at any time.

5 SUSD one-off · no wallet required
Abstract
When a firm is unable to meet its financial obligations, it falls under the vulnerable state of financial distress. If left unaddressed, this may lead to the eventual bankruptcy of the firm. Thus, it is of great significance if investors and creditors can predict this state in order for them to prevent losses. This paper analyzes the significance, predictive accuracy, and the marginal effects of accounting, market, and macroeconomic variables in predicting financial distress using a logistic regression analysis for an unbalanced panel dataset consisting of 1,226 company-year observations of publicly listed industrial firms in the Philippines. We build a model using data from the firm’s financial statements, PSE monthly reports, and the Bangko Sentral ng Pilipinas. Our empirical results show that among all the variables, liquidity is the most significant and has the greatest impact in determining the probability of financial distress. Furthermore, we find that the consolidated model, which contains all the types of variables, yields the best fitting and most accurate model in predicting financial distress when compared to the nested models.
Reference Key
persistent_1760656554_68f17caa72b63 Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors Tan, Dave Johann Y.
Journal Malay Journal
Year 2021
DOI
DOI not found
URL
Keywords Keywords not found

Citations

No citations found. To add a citation, contact the admin at info@scimatic.org

No comments yet. Be the first to comment on this article.