Examining and validating a bankruptcy prediction models in Malaysia

Suzaida Bakar, Irene Ting Wei Kiong, Annuar Md Nassir

Research output: Chapter in Book/Report/Conference proceedingConference contribution

2 Citations (Scopus)

Abstract

The purpose of this paper is to propose and validate the combined model for bankruptcy prediction for the Malaysian firms. This combined model is adopted from previous studies by combining Ohlson logit model, Springate-Canadian model and macroeconomic factors. The proposed combined model is developed by using the financial and macroeconomic constructs. The result indicates that logistic regression performs well and it is used to validate the model. Our results also show that, the capacity of the proposed model to predict correctly is 100% for both samples (distress and non-distress firms). Finally, the results of this study could also be applicable to business and investor's decision making contexts other than the bankruptcy prediction model.

Original languageEnglish
Title of host publicationICSSBE 2012 - Proceedings, 2012 International Conference on Statistics in Science, Business and Engineering
Subtitle of host publication"Empowering Decision Making with Statistical Sciences"
Pages219-223
Number of pages5
DOIs
Publication statusPublished - 2012
Event2012 International Conference on Statistics in Science, Business and Engineering, ICSSBE 2012 - Langkawi, Kedah, Malaysia
Duration: 10 Sep 201212 Sep 2012

Other

Other2012 International Conference on Statistics in Science, Business and Engineering, ICSSBE 2012
CountryMalaysia
CityLangkawi, Kedah
Period10/09/1212/09/12

Fingerprint

Bankruptcy
Malaysia
Prediction Model
Macroeconomics
Model
Logit Model
Logistic Regression
Decision Making
Predict
Prediction
Business

All Science Journal Classification (ASJC) codes

  • Statistics and Probability

Cite this

Bakar, S., Kiong, I. T. W., & Nassir, A. M. (2012). Examining and validating a bankruptcy prediction models in Malaysia. In ICSSBE 2012 - Proceedings, 2012 International Conference on Statistics in Science, Business and Engineering: "Empowering Decision Making with Statistical Sciences" (pp. 219-223). [6396560] https://doi.org/10.1109/ICSSBE.2012.6396560
Bakar, Suzaida ; Kiong, Irene Ting Wei ; Nassir, Annuar Md. / Examining and validating a bankruptcy prediction models in Malaysia. ICSSBE 2012 - Proceedings, 2012 International Conference on Statistics in Science, Business and Engineering: "Empowering Decision Making with Statistical Sciences". 2012. pp. 219-223
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Bakar, S, Kiong, ITW & Nassir, AM 2012, Examining and validating a bankruptcy prediction models in Malaysia. in ICSSBE 2012 - Proceedings, 2012 International Conference on Statistics in Science, Business and Engineering: "Empowering Decision Making with Statistical Sciences"., 6396560, pp. 219-223, 2012 International Conference on Statistics in Science, Business and Engineering, ICSSBE 2012, Langkawi, Kedah, Malaysia, 10/09/12. https://doi.org/10.1109/ICSSBE.2012.6396560

Examining and validating a bankruptcy prediction models in Malaysia. / Bakar, Suzaida; Kiong, Irene Ting Wei; Nassir, Annuar Md.

ICSSBE 2012 - Proceedings, 2012 International Conference on Statistics in Science, Business and Engineering: "Empowering Decision Making with Statistical Sciences". 2012. p. 219-223 6396560.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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AB - The purpose of this paper is to propose and validate the combined model for bankruptcy prediction for the Malaysian firms. This combined model is adopted from previous studies by combining Ohlson logit model, Springate-Canadian model and macroeconomic factors. The proposed combined model is developed by using the financial and macroeconomic constructs. The result indicates that logistic regression performs well and it is used to validate the model. Our results also show that, the capacity of the proposed model to predict correctly is 100% for both samples (distress and non-distress firms). Finally, the results of this study could also be applicable to business and investor's decision making contexts other than the bankruptcy prediction model.

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Bakar S, Kiong ITW, Nassir AM. Examining and validating a bankruptcy prediction models in Malaysia. In ICSSBE 2012 - Proceedings, 2012 International Conference on Statistics in Science, Business and Engineering: "Empowering Decision Making with Statistical Sciences". 2012. p. 219-223. 6396560 https://doi.org/10.1109/ICSSBE.2012.6396560