The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin

Financial distress can be defined as an inability of companies to generate profit due to excessive debt. The company that suffers from financial distress will cause them to fail in many business operations that increase their probability of losing their capital from the investors. There is ongoin...

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Main Author:	Sairin, Nur Hidayati
Format:	Thesis
Language:	English
Published:	2020
Subjects:	Financial management Business finance Corporation finance
Online Access:	https://ir.uitm.edu.my/id/eprint/56322/1/56322.pdf
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id	my-uitm-ir.56322
record_format	uketd_dc
spelling	my-uitm-ir.563222022-05-19T14:11:32Z The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin 2020-09 Sairin, Nur Hidayati Financial management. Business finance. Corporation finance Financial distress can be defined as an inability of companies to generate profit due to excessive debt. The company that suffers from financial distress will cause them to fail in many business operations that increase their probability of losing their capital from the investors. There is ongoing debate about the relationship of macroeconomic indicators toward financial distress. Concerning the various empirical findings, it has been argued that the ability of macroeconomic indicator can give impact or influence the companies to have financial distress problem or becoming bankrupt. Therefore, the purpose of this study is to determine the impact of macroeconomic indicators on the Z- score of financial distressed companies and to investigate whether the level of Z-score of non – financial distress companies and sectorial can be influenced by the macroeconomic indicators. This sample of this study consists of PN17 distress companies and non-distressed companies from Bursa Malaysia with the selected macroeconomic indicators such as gross domestic product, consumer price index, producer price index, real interest rate and money supply. The data analysis was conducted using data stretching from 2008 until 2017 and the analysis based on Static Panel Data Analysis. The general findings suggested that both companies were able to be influenced by the selected macroeconomic indicators for this study. The significance of the study suggests that money supply was the most crucial macroeconomic indicator as it able to influence all the sectors to have financial distress problems. Thus, the implication of the study may help the company to have a closer look into this macroeconomics indicators to sustain their existence in business while maintaining their performance and profitability. Meanwhile, the government may collaborate with the banking institution in controlling the money supply into our economy by implementing effective strategies for controlling well on the producer price index especially when the country is facing inflation. 2020-09 Thesis https://ir.uitm.edu.my/id/eprint/56322/ https://ir.uitm.edu.my/id/eprint/56322/1/56322.pdf text en public masters Universiti Teknologi MARA Faculty of Business and Management Salisi, Mohd Shamlie (Dr.)
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Salisi, Mohd Shamlie (Dr.)
topic	Financial management Business finance Corporation finance
spellingShingle	Financial management Business finance Corporation finance Sairin, Nur Hidayati The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin
description	Financial distress can be defined as an inability of companies to generate profit due to excessive debt. The company that suffers from financial distress will cause them to fail in many business operations that increase their probability of losing their capital from the investors. There is ongoing debate about the relationship of macroeconomic indicators toward financial distress. Concerning the various empirical findings, it has been argued that the ability of macroeconomic indicator can give impact or influence the companies to have financial distress problem or becoming bankrupt. Therefore, the purpose of this study is to determine the impact of macroeconomic indicators on the Z- score of financial distressed companies and to investigate whether the level of Z-score of non – financial distress companies and sectorial can be influenced by the macroeconomic indicators. This sample of this study consists of PN17 distress companies and non-distressed companies from Bursa Malaysia with the selected macroeconomic indicators such as gross domestic product, consumer price index, producer price index, real interest rate and money supply. The data analysis was conducted using data stretching from 2008 until 2017 and the analysis based on Static Panel Data Analysis. The general findings suggested that both companies were able to be influenced by the selected macroeconomic indicators for this study. The significance of the study suggests that money supply was the most crucial macroeconomic indicator as it able to influence all the sectors to have financial distress problems. Thus, the implication of the study may help the company to have a closer look into this macroeconomics indicators to sustain their existence in business while maintaining their performance and profitability. Meanwhile, the government may collaborate with the banking institution in controlling the money supply into our economy by implementing effective strategies for controlling well on the producer price index especially when the country is facing inflation.
format	Thesis
qualification_level	Master's degree
author	Sairin, Nur Hidayati
author_facet	Sairin, Nur Hidayati
author_sort	Sairin, Nur Hidayati
title	The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin
title_short	The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin
title_full	The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin
title_fullStr	The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin
title_full_unstemmed	The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin
title_sort	relevance of macroeconomic indicators in predicting financial distress of public listed firms in malaysia / nur hidayati sairin
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Business and Management
publishDate	2020
url	https://ir.uitm.edu.my/id/eprint/56322/1/56322.pdf
_version_	1783734944558743552

The relevance of macroeconomic indicators in predicting financial distress of public listed firms in Malaysia / Nur Hidayati Sairin

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