Corporate financial distress: The case of publicly listed firms in an emerging market economy

2020 ◽  
Author(s):  
Regina M. Lizares ◽  
Carlos C. Bautista
Keyword(s):  
Market Economy ◽  
Financial Distress ◽  
Emerging Market ◽  
Listed Firms

scholarly journals The COVID-19 Economic Crisis in Mexico through the Lens of a Financial Conditions Index

2021 ◽  
pp. 1-27
Author(s):  
Julio A. Carrillo ◽  
Ana Laura García
Keyword(s):  
Financial Markets ◽  
Market Economy ◽  
Economic Crisis ◽  
Economic Activity ◽  
Financial Distress ◽  
Emerging Market ◽  
Financial Conditions ◽  
Real Shocks

The COVID-19 pandemic not only generated real shocks affecting economic activity severely, but also a broad uncertainty that unleashed an extreme shock to financial markets. In this paper, we focus on the financial dimension of the pandemic from the viewpoint of an emerging market economy. Accordingly, we estimate a financial conditions index for Mexico since 1993 and find that the acute turmoil generated by the pandemic stands among the four largest episodes of financial distress experienced by the country. In addition, we find evidence suggesting that real variables have responded differently to shocks that worsen financial conditions than to shocks that improve them.

ANALISIS FINANCIAL DISTRESS DAN PENGARUHNYA TERHADAP RETURN SAHAM PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 7 (4) ◽  
Author(s):  
SISCA KRISTANTI B2042141020
Keyword(s):  
Social Sciences ◽  
New York ◽  
Empirical Evidence ◽  
Market Economy ◽  
Financial Distress ◽  
Stock Exchange ◽  
Emerging Market ◽  
Z Score ◽  
Factors Influencing ◽  
Altman Model

Kebangkrutan merupakan masalah yang sangat perlu yang diwaspadai oleh perusahaan. Perusahaan yang mengalami kebangkrutan tentunya akan memberikan dampak negatif pada stakeholder perusahaan. Sebelum kebangkrutan itu terjadi, perusahaan mengalami kondisi financial distress atau kondisi dimana keuangan perusahaan dalam keadaan tidak baik yang menjadi indikator awal terjadinya kebangkrutan. Tujuan penelitian ini adalah menganalisis potensi kebangkrutan pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia periode 2012-2016 berdasarkan model Z-Score Altman dan Springate serta pengaruhnya metode Z-Score Altman dan Springate terhadap return saham perusahaan. Sampel yang digunakan dalam penelitian ini 10 perusahaan manufaktur. Analisis yang digunakan adalah analisis deskripstif dan analisis regresi linier berganda dengan menggunakan perangkat lunak SPSS. Hasil prediksi financial distress menggunakan metode Altman Z-Score dan Springate terdapat dua perusahaan yang berada pada financial distress yaitu PT Semen Holcim serta PT. Tirta Mahakam Resources Tbk. Metode altman z-score tidak berpengaruh sedangkan springate berpengaruh positif terhadap return saham perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia tahun 2012-2016 Kata kunci : kebangkrutan, manufaktur, altman z-score dan springateDAFTAR PUSTAKA Adnan, A.M. 2001. Analisis Ketepatan Prediksi Metode Altman Terhadap Terjadinya Likuidasi pada Lembaga Perbankan (Kasus Likuidasi Perbankan di Indonesia). dalam JAI Volume 5 No. 2. Jakarta. Jurnal Akuntansi Indonesia Adnan, M.A dan, Kurniasih, E. 2000. Analisis Tingkat Kesehatan Perusahaan Untuk Memprediksi Potensi Kebangkrutan Pada Penekatan Altman (Kasus Pada Sepuluh Perusahaan Di Indonesia), Jurnal Akuntansi Dan Auditing Indonesia, 4 (2), 131-149. Alifiana, M. A Dan  N. R Arumsari., 2017. Analisis Kinerja Bank Badan Usaha Milik Negara  Berdasar Metode Altman Dan Return Saham  Studi Pada Pt Bank Negara Indonesia (Persero) Tbk.  PROSIDING SNATI F Ke-4 Tahun 2017 ISBN: 978-602-1180-50-1 Altman, 2002. Corporate Financial Distress. John Wiley & Sons, 1983. New York. Fakhrurozie, 2007, Analisis Pengaruh Kebangkrutan Bank Dengan Metode Altman Z-Score Terhadap Harga Saham Perusahaan Perbankan Di Bursa Efek Jakarta. Skripsi.  Semarang . Universitas Negeri Semarang, Hanafi, H. M. dan H. Abdul. 1996. Analisa Laporan Keuangan. UPP-AMP YKPN. Yogyakarta. Marcelina . T. A Dan W.S Yuliandhari, 2014. Prediksi Kebangkrutan Menggunakan Metode Z-Score Dan Pengaruhnya Terhadap Harga Saham Pada Perusahaan Transportasi Yang Terdaftar Di Bursa Efek Indonesia Tahun 2008-2012. E-Proceeding Of Management : Vol.1, No.3 Desember 2014 | Page 291 Munawir, S 2001. Analisa Laporan Keuangan. Liberty. Yogyakarta Munawir, S 2002. Analisa Laporan Keuangan. UPP AMP YKPN. Yogyakarta Muslich, M. 2000. Manajemen keuangan Modern. Rineka Cipta. Jakarta. Nur Fadli Andriawan, N.F Dan D Salean., 2016. Analisis Metode Altman Z-Score Sebagai Alat Prediksi Kebangkrutan Dan Pengaruhnya Terhadap Harga Saham Pada Perusahaan Farmasi Yang Terdaftar Di Bursa Efek Indonesia.  Jurnal Ekonomi Akuntansi, Hal 67 – 82 Volume 1, Nomor 1, April 2016 Platt, H., dan M. B. Platt. 2002. Predicting Financial Distres. Journal of Financial Pranowo. 2010. “The Dynamics of Corporate Financial Distress in Emerging Market Economy: Empirical Evidence from the Indonesian Stock Exchange 2004-2008”. European Journal of Social Sciences Vol 16 Number I, 138-149. Purwanti, E., 2016. Analisis Perbedaan Model Altman Z Score Dan Model Springate Dalam Memprediksi Kebangkrutan Pada Perusahaan Pertambangan Di Indonesia (Studi Empiris Pada Perusahaan Pertambangan Yang Terdaftar Pada Bursa Efek Indonesia Tahun 2010-2014). Jurnal STIE Semarang, Vol 8, No 2, Edisi Juni 2016 (Issn : 2252-826) Sukana. 2008. Factors Influencing Financial Distress and Bankruptcy Risks. Universitas Padjajaran, Bandung. Syamsul, H Dan Atika, A. 2008. Pemilihan Prediktor Delisting Terbaik (Perbandingan Antara The Zmijewski Model, The Altman Model, Dan Springate Model). Thesis. Jakarta. Universitas Islam Indonesia. Weston, F.J. 1997. Manajemen Keuangan. Erlangga. Jakarta

The Impact of Going Concern on Financial Reporting Quality: Evidence from Vietnam

2018 ◽  
Vol 34 (3) ◽  
Author(s):  
Phung Anh Thu ◽  
Nguyen Vinh Khuong
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Distress ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Viet Nam ◽  
Listed Firms ◽  
Going Concern ◽  
Debt Covenant

The investigation was conducted to contribute empirical evidence of the association between going concern and financial reporting quality of listed firms on the Vietnam stock market. Based on data from 279 companies listed on the HNX and HOSE exchanges in Vietnam for the period 2009-2015, the quantitative research. Results found that the relationship between the going concern and financial reporting quality of listed firms. Research results are significant for investors, regulators to the transparency of financial reporting information. Keywords Going concern, financial reporting quality, listed firms References Agrawal, K., & Chatterjee, C. (2015). Earnings management and financial distress: Evidence from India. Global Business Review, 16(5_suppl), 140S-154S.Bergstresser, D., & Philippon, T. (2006). CEO incentives and earnings management. Journal of Financial Economics, 80(3), 511–529.Burgstahler, D., & Dichev, I. (1997). Earnings management to avoid earnings decreases and losses. Journal of Accounting and Economics, 24(1), 99–126.Charitou, A., Lambertides, N., & Trigeorgis, L. (2007a). Earnings behaviour of financially distressed firms: The role of institutional ownership. Abacus, 43(3), 271–296.Chen, Y., Chen, C., & Huang, S. (2010). An appraisal of financially distressed companies’ earnings management: Evidence from listed companies in China. Pacific Accounting Review, 22(1), 22–41Dechow, P., & Dichev, I. (2002). The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors. The Accounting Review, 77, 35-59.DeFond, M., & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17(1), 145–176.DeFond, M.L., & Park, C.W. (1997). Smoothing income in anticipation of future earnings. Journal of Accounting and Economics, 23(2), 115–139.Dichev, I., & Skinner, D. (2004). Large sample evidence on the debt covenant hypothesis. Journal of Accounting Research, 40(4), 1091–1123.Đinh Thị Thu T., Nguyễn Vĩnh K. (2016). Tác động của hành vi điều chỉnh thu nhập đến khả năng hoạt động liên tục trong kế toán: Nghiên cứu thực nghiệm cho các doanh nghiệp niêm yết tại Việt Nam, Tạp chí phát triển khoa học và công nghệ, Quí 3, tr.96-108.Đỗ Thị Vân Trang (2015). Các mô hình đánh giá chất lượng báo cáo tài chính, Tạp chí chứng khoán Việt Nam, 200, tr 18-21.Habib, A., Uddin Bhuiyan, B., & Islam, A. (2013). Financial distress, earnings management and market pricing of accruals during the global financial crisis. Managerial Finance, 39(2), 155-180.Jaggi, B., & Lee, P. (2002). Earnings management response to debt covenant violations and debt restructuring. Journal of Accounting, Auditing & Finance, 17(4), 295–324.Kasznik, R., (1999). On the association between voluntary disclosure and earnings management. Journal of accounting research, 37(1), pp.57-81.Lu, J. (1999). An empirical study of earnings management by loss-making listed Chinese companies. KuaijiYanjiu (Accounting Research), (9), 25–35.McNichols, M.F. and Stubben, S.R., (2008). Does earnings management affect firms’ investment decisions?. The accounting review, 83(6), pp.1571-1603.Selahudin, N.F., Zakaria, N.B., & Sanusi, Z.M. (2014). Remodelling the earnings management with the appear- ance of leverage, financial distress and free cash flow: Malaysia and Thailand evidences. Journal of Applied Sciences, 14(21), 2644–2661.Skinner, D.J., & Sloan, R. (2002). Earnings surprises, growth expectations, and stock returns or don’t let an earnings torpedo sink your portfolio. Review of Accounting Studies, 7(2/3), 289–312.Sweeney, A.P., (1994). Debt-covenant violations and managers' accounting responses. Journal of Accounting & Economics, 17(3): 281-308.Trần Thị Thùy Linh, Mai Hoàng Hạnh (2015). Chất lượng báo cáo tài chính và kỳ hạn nợ ảnh hưởng đến hiệu quả hoạt động của doanh nghiệp Việt Nam, Tạp chí phát triển kinh tế, 10, tr.27-50.Trương Thị Thùy Dương (2017). Nâng cao chất lượng báo cáo tài chính công ty đại chúng, Tạp chí tài chính, 1(3), tr.55-56.Uwuigbe, Ranti, Bernard, (2015). Assessment of the effects of firm’s characteristics on earnings management of listed firms in Nigeria, Asian Economic and Financial Review,5(2):218-228.

scholarly journals Predicting Firms’ Financial Distress: An Empirical Analysis Using the F-Score Model

2021 ◽  
Vol 14 (5) ◽  
pp. 199
Author(s):  
Mahfuzur Rahman ◽  
Cheong Li Sa ◽  
Md. Abdul KaiumMasud
Keyword(s):  
Prediction Model ◽  
Financial Distress ◽  
The United States ◽  
Research Database ◽  
Negative Consequences ◽  
Return On Assets ◽  
Listed Firms ◽  
Distressed Firms ◽  
Score Model ◽  
Relationship Of

Financial performance of firms is very important to bankers, shareholders, potential investors, and creditors. The inability of firms to meet their liabilities will affect all its stakeholders and will result in negative consequences in the wider economy. The objective of the study is to explore the applicability of a distress prediction model which uses the F-Score and its components to identify firms which are at high risk of going into default. The study incorporates a prediction model and vast literature to address the research questions. The sample of the study is collected from publicly listed firms of the United States. In total, 81 financially distressed firms wereextracted from the UCLA-LoPucki Bankruptcy Research Database during 2009–2017. This study found that the relationship of the F-Score and probability of firms going into financial distress is significant. This study also demonstrated that firms which are at risk of distress tend to record a negative cash flow from operations (CFO) and showed a greater decline in return on assets (ROA) in the year prior to default. This study extends the existing literature by supporting a model which has not been widely used in the area of financial distress predictions.

How do resources and diversification strategy explain the performance consequences of internationalization?

2014 ◽  
Vol 52 (5) ◽  
pp. 897-915 ◽  
Author(s):  
Yan Chen ◽  
Yiwei Jiang ◽  
Chengqi Wang ◽  
Wen Chung Hsu
Keyword(s):  
Emerging Market ◽  
Product Diversification ◽  
Firm Resources ◽  
Diversification Strategy ◽  
Data Set ◽  
Content Type ◽  
Listed Firms ◽  
Performance Consequences ◽  
Performance Effects ◽  
And Performance

Purpose – The purpose of this paper is to examine how firm resources and diversification strategy explain the performance consequences of internationalization of emerging market enterprises. Design/methodology/approach – The paper conducts a regression analysis by using a novel panel data set comprising of 685 listed Chinese firms over the period of 2008-2011. Findings – The results show that the relationship between internationalization and performance is inverse U-shaped. Further, marketing resources play a greater role in enhancing the performance effects of internationalization than technological resources do. Related product diversification enhances the performance effects, while unrelated product diversification does the contrary. Research limitations/implications – The study focusses on listed firms in one country, and as a result, the findings cannot be generalized to non-listed firms and firms in other countries. Practical implications – This paper offers guidelines for international managers to improve performance of internationalization by developing a particular type of resources and diversification strategy. Originality/value – This paper extends the literature on the functional form of the internationalization-performance relationship, and further suggests that the analysis of the performance consequences of internationalization should go beyond the nexus between internationalization and performance, and focusses on firm-specific resources and strategies that may facilitate or constrain the performance effects of internationalization.

scholarly journals Measuring business schools’ service quality in an emerging market using an extended SERVQUAL instrument

2016 ◽  
Vol 47 (1) ◽  
pp. 61-74 ◽  
Author(s):  
E. R. Mbise ◽  
R. S.J. Tuninga
Keyword(s):  
Service Quality ◽  
Service Delivery ◽  
Market Economy ◽  
Business Schools ◽  
Emerging Market ◽  
Student Experiences ◽  
Level Of Service ◽  
Improve Quality ◽  
Four Dimensions ◽  
Scarce Resources

An extended SERVQUAL instrument is developed, validated and used to measure perceived service quality delivered to students by business schools in an emerging market economy. A longitudinal survey is conducted with selected students in their final year of study from two business schools in an emerging market economy. The use of the extended SERVQUAL model is suggested to monitor student/employee expectations and perceptions during and after the education service delivery process. Students attach different weights to the service quality dimensions. A new Process Outcome dimension is found to substantially add to the SERVQUAL model and is more important than the other dimensions. The validity of the extended SERVQUAL model for practical use is α >0.95. Prediction of the level of service quality delivered, using four dimensions, indicates that the level of service quality is explained mostly by Process Outcome and Tangibles dimensions. It is suggested that using the extended SERVQUAL model as a tool can enable managers of business schools to identify the factors on which students/employees base their quality assessment of the education services they receive. Knowledge of these factors will enable managers in emerging economies to periodically assess, sustain and improve quality of the whole service delivery process. Priorities can be set to allocate scarce resources properly to make effective investment decisions to improve quality per school and in higher education, in general. The paper further suggests that regulatory bodies make use of this model when comparing performance of business schools, focusing on student experiences as a supplement to the traditional performance measures.

Institution building and institutional voids

2016 ◽  
Vol 11 (1) ◽  
pp. 18-41 ◽  
Author(s):  
Sheila M. Puffer ◽  
Daniel J McCarthy ◽  
Alfred M Jaeger
Keyword(s):  
Economic Growth ◽  
Institutional Theory ◽  
Market Economy ◽  
Emerging Economies ◽  
Emerging Market ◽  
Institution Building ◽  
Institutional Voids ◽  
Formal Institutions ◽  
Content Type ◽  
Bric Countries

Purpose – The purpose of this paper is to present a comparative analysis of institutions and institutional voids in Russia, Brazil, and Poland over the decades of the 1980s through to 2015. The paper asserts that Russia and Brazil could learn much from Poland regarding formal institution building and formal institutional voids that cause problems like corruption and limit economic growth. Design/methodology/approach – A comparative case study approach is utilized to assess the relative success of the three emerging market countries in transitioning to a market economy, viewed through the lens of institutional theory. Findings – Poland’s experience in building successful formal institutions and mitigating major institutional voids can be instructive for Russia and Brazil which have shown far less success, and correspondingly less sustained economic growth. Research limitations/implications – This paper demonstrates the value of applying institutional theory to analyze the progress of emerging economies in transitioning to a market economy. Practical implications – This country comparison can prove valuable to other emerging economies seeking a successful transition to a market economy. Social implications – Since institutions are the fabric of any society, the emphasis on institutions in this paper can have positive implications for society in emerging markets. Originality/value – This paper is an original comparison of two BRIC countries with a smaller emerging economy, utilizing institutional theory. Factors contributing to Poland’s success are compared to Russia and Brazil to assess how those countries might be positively informed by Poland’s experience in building and strengthening sustainable formal institutions as well as avoiding institutional voids and their associated problems.

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