Explaining and Predicting Financial Distress Using Financial Ratios

Gilbert Mbanwie

ISBN 10: 3844383859 / ISBN 13: 9783844383850

Published by LAP LAMBERT Academic Publishing Jun 2011, 2011

About this Item

Neuware -Financial distress and corporate bankruptcy has been a common occurrence back into the century and of late has witnessed a multiplier effect in the global market. Firms are running short of cash flows to meet up not only with debt financing, but also with the cost of daily operations. This study examine financial ratios using financial reports of groups of Swedish bankrupt and active companies for the period 1996 to 2003 with aim to determine most significant and reliable ratios for predicting bankruptcy. Cross sectional analysis is used to compare matched pair financial ratios and to explain the association between the explanatory variables and business failure. The study adopts both objectivism and interpretivism research approaches therefore provides findings that differ from those of ¿pure¿ mainstream research. It explains financial distress from an academic and professional perspective making it useful to researchers and business managers. The book is ideal for final year undergraduate and graduate students taking courses in accounting, finance, business and economics.Books on Demand GmbH, Überseering 33, 22297 Hamburg 64 pp. Englisch.

Seller Inventory # 9783844383850

Bibliographic Details

• Title: Explaining and Predicting Financial Distress Using Financial Ratios
• Publisher: LAP LAMBERT Academic Publishing Jun 2011
• Publication Date: 2011
• Language: English
• ISBN 10: 3844383859
• ISBN 13: 9783844383850
• Binding: Taschenbuch
• Condition: Neu

About this title

Synopsis

Financial distress and corporate bankruptcy has been a common occurrence back into the century and of late has witnessed a multiplier effect in the global market. Firms are running short of cash flows to meet up not only with debt financing, but also with the cost of daily operations. This study examine financial ratios using financial reports of groups of Swedish bankrupt and active companies for the period 1996 to 2003 with aim to determine most significant and reliable ratios for predicting bankruptcy. Cross sectional analysis is used to compare matched pair financial ratios and to explain the association between the explanatory variables and business failure. The study adopts both objectivism and interpretivism research approaches therefore provides findings that differ from those of “pure” mainstream research. It explains financial distress from an academic and professional perspective making it useful to researchers and business managers. The book is ideal for final year undergraduate and graduate students taking courses in accounting, finance, business and economics.

About the Author

GILBERT holds an MSc in Accounting from the School of Business Economics and Law, Univ. of Gothenburg. He has extensive experience in accounting and finance in top multinational FMCG.EDMOND holds an MSc in Accounting from the Univ. of Gothenburg. He has broad experience in corporate banking, equity finance and credit risk management.