BANKRUPTCY PREDICTION: SMES IN THE HOSPITALITY INDUSTRY

Juraini Zainol Abidin; Nur Adiana Hiau Abdullah; Karren Lee-Hwei Khaw

doi:10.32890/ijbf2021.16.2.3

BANKRUPTCY PREDICTION: SMES IN THE HOSPITALITY INDUSTRY

International Journal of Banking and Finance - Vol. 15, Number 2, 2020 ◽

10.32890/ijbf2021.16.2.3 ◽

2021 ◽

Vol 16 (Number 2) ◽

pp. 51-80

Author(s):

Juraini Zainol Abidin ◽

Nur Adiana Hiau Abdullah ◽

Karren Lee-Hwei Khaw

Keyword(s):

Hospitality Industry ◽

Gender Diversity ◽

Bankruptcy Prediction ◽

Ownership Concentration ◽

Debt Ratio ◽

Firm Age ◽

Return On Assets ◽

Bankruptcy Risk ◽

And Gender ◽

One Year

The objectives of this study are to predict bankruptcy risk among SMEs in the hospitality industry for a three-year horizon period and to investigate the factors that are significant in determining bankruptcy. The contribution of SMEs in the hospitality industry is essential as businesses in the hospitality industry are dominated by SME operators. However, the failure rate among SMEs is relatively high and almost 50 percent of hospitality establishments do not survive beyond five years of operation. The Stepwise logistic model was employed to determine significant predictors that could predict bankruptcy for the period of one year, two years and three years before bankruptcy. Return on assets and firm age were found to be significant in all periods while other variables were identified to be important at a specific period prior to bankruptcy. In addition to return on assets and firm age, debt ratio and total assets turnover were found to be significant predictors of bankruptcy one-year prior to bankruptcy. However, in the two years prior to bankruptcy, debt ratio and total assets turnover were no longer important but current ratio, ownership concentration and gender diversity were found to be significant. As for the three years prior to bankruptcy, additional variables namely debt-to-equity ratio and board size were found to be significant, but ownership concentration and gender diversity ceased to be important. The findings of this study contribute to the limited literature in predicting the bankruptcy risk of small firms for a three-year horizon period by providing empirical evidence from SMEs in the hospitality industry of Malaysia.

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Factors Explaining Debt Firm Policy: A Comparison between Five Intercontinental Countries

Business and Economic Research ◽

10.5296/ber.v7i1.9292 ◽

2017 ◽

Vol 7 (1) ◽

pp. 285

Author(s):

Ben Said Hatem

Keyword(s):

South Africa ◽

Capital Structure ◽

Firm Growth ◽

Debt Ratio ◽

Firm Age ◽

Growth Opportunities ◽

Short Term ◽

Return On Assets ◽

Debt Policy

We test the factors explaining the debt policy of firms across five continents. To this end, we examine samples from South Africa, Australia, Brazil, India and Spain over a period of 8 years from 2003 to 2010. The results manipulate differences in debt policy for all countries (except for the variable Return on Assets, ROA). As for the effect of activity sectors on firm debt policy, higher performance led to lower firm debt ratios. Furthermore, we concluded some differences in other variables. Higher tangibility ratios for firms from South Africa, India and Spain led to higher capital structure ratios. Larger firms from Brazil led to lower short term debt ratio. We could not find evidence on the effect of firm growth opportunities in Brazil and India. Furthermore, we concluded to a positive and a statistically significant effect of liquidity ratio for Australia and India, and a positive and a statistically significant effect of firm age for firms from Spain.

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The Accuracy of Altman’s Models in Predicting Hotel Bankruptcy

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v2i2.2367 ◽

2012 ◽

Vol 2 (2) ◽

pp. 96 ◽

Cited By ~ 9

Author(s):

Mihail N. Diakomihalis

Keyword(s):

Bankruptcy Prediction ◽

Accuracy Rate ◽

Bankruptcy Risk ◽

Differentiation Degree ◽

One Year

This paper studies the bankruptcy predictions for different hotel categories in Greece, aiming to determine the zone of discrimination classified as “certainty” for bankruptcy.It also calculates the differentiation degree of the bankruptcy risk that is owed to the different categorisation of the hotels. The three versions of Altman’s model have been applied to evaluate the bankruptcy prediction and its accuracy between the hotel enterprises that fall in the “distress” zone. Approximately 40 percent of the total firms in the distress zone are evaluated, having a Z 1 score below 1.8, while the percentage for the Z 2 formula is 44.5 percent and 36.3 percent for the Z 3 score. The Z 1 score formula is more precise—with an accuracy rate of 88.2 percent in 2007, one year before bankruptcy—than the Z2 model, which gives a prediction of 83.33 percent for the cutoff zone <0.7, while the Z 3 score reaches 80 percent prediction for the < 0.5 zone. Five and four star hotels show a higher bankruptcy risk than 4-star hotels, while the smaller risk is depicted in 2-star hotels.This paper fulfils the identified need to predict the certainty of bankruptcy among enterprises in the distress zone.

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Bahraini Women's Voices in the Boardroom

Handbook of Research on Women in Management and the Global Labor Market - Advances in Logistics, Operations, and Management Science ◽

10.4018/978-1-5225-9171-9.ch017 ◽

2019 ◽

pp. 336-350

Author(s):

Amna Hameed Jafaar ◽

Maryam Yousif Juma ◽

Jafaar Mohmed Habib ◽

Abdalmuttaleb M. A. Musleh Al-Sartawi

Keyword(s):

Corporate Governance ◽

Gender Diversity ◽

Negative Relationship ◽

Western Country ◽

Return On Assets ◽

Women's Voices ◽

Gender Perspectives ◽

And Gender ◽

Board Gender Diversity ◽

Traditional Roles

Why should boards appoint members who are women? Do women contribute positively to the effectiveness of the board? Or, are they just appointed to boost the firm's image of fulfilling their quota? In recent years, board gender diversity has become an important issue around the world, where studies show that the inclusion of female directors is positively related to their financial performance of firms, their organizational effectiveness, and corporate governance. By applying gender perspectives to the boardrooms, new dimensions, knowledge, abilities, and experience are brought to the table. This chapter offers a contribution to the literature review by extending the studies on corporate governance and gender diversity as well as shedding the light on this relationship in the context of a non-western country, Bahrain, where women must abide by the traditional roles they play in the society. However, contradictory to expectations, the results indicate the number of females on the board has a negative relationship with firm performance, especially with return on assets (ROA).

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Corporate Governance and Financial Performance in Nepal

NCC Journal ◽

10.3126/nccj.v3i1.20253 ◽

2018 ◽

Vol 3 (1) ◽

pp. 108-120 ◽

Cited By ~ 1

Author(s):

Pitambar Lamichhane

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Ownership Concentration ◽

Fiscal Year ◽

Regression Result ◽

Debt Ratio ◽

Return On Assets ◽

Explanatory Variables ◽

Governance Index ◽

Negative Effect

This paper analyzes the factors that affect corporate governance and influence on financial performance of Nepalese firms for theperiod of fiscal year 2009/10 to 2015/16 using descriptive and causal comparative research design. The profit margin and return on assets are dependent variables usedto measure financial performance and corporate governance and firm related variables such as corporate governance index, age of firms, size of assets, debt ratio, market to book ratio and ownership concentration are considered as explanatory variables. The result of this paper reveals thatprofit margin and return on assets of firms are positively related with age, market to book ratio and overall corporate governance index which implies that higher age, market to book ratio and corporate governance increase financial performance of Nepalese firms. Further, the regression result of the study shows that size of assets and debt ratio have negative effect and ownership concentration has no relationship with firms’ financial performance. Finally, result of this paper concludes that corporate governance, market to book value ratio, age, size of assets and debt ratio have strong explaining power of financial performance of Nepalese firms.NCC JournalVol. 3, No. 1, 2018, Page: 108-120

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Firm Characteristics and Corporate Social Responsibility: The Case of Czech Transportation and Storage Industry

Sustainability ◽

10.3390/su12051992 ◽

2020 ◽

Vol 12 (5) ◽

pp. 1992 ◽

Cited By ~ 5

Author(s):

Simona Činčalová ◽

Veronika Hedija

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Firm Size ◽

Gender Diversity ◽

Sustainable Growth ◽

Firm Age ◽

Size Firm ◽

And Gender ◽

Corporate Social ◽

And Storage

Nowadays, corporate social responsibility is an important factor in sustainable growth. The paper aims to examine the relationship between selected characteristics of firms (firm age, firm size, firm performance, and gender diversity of boards) and the application of a corporate social responsibility concept in the Czech transportation and storage industry. Using the data from own survey, the Albertina database, and the Business Register, and applying the Pearson and Spearman correlation coefficients and regression analysis, it has been found that there is a statistically significant relationship between firm size, firm financial performance, and CSR practice of firms. On the other hand, firm age and gender diversity of boards are not the factors affecting the CSR practice. These findings have brought new insights in the area of CSR and its application in the Czech Republic.

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Financial Performance and Gender Diversity: The Moderating and Mediating Effect of CSR Disclosure and Expenditure of Listed Firms in India

Vision The Journal of Business Perspective ◽

10.1177/09722629211001985 ◽

2021 ◽

pp. 097226292110019

Author(s):

Kofi Mintah Oware ◽

T. Mallikarjunappa

Keyword(s):

Financial Performance ◽

Emerging Market ◽

Gender Diversity ◽

Negative Association ◽

Mediating Effect ◽

Financial Leverage ◽

Return On Assets ◽

Listed Firms ◽

And Gender ◽

Csr Disclosure

The study examines the moderating and mediating effect of corporate social responsibility (CSR) disclosure and CSR expenditure on the association between listed firms’ financial performance and gender diversity. There are 80 listed firms with 800 firm-year observations from 2010 to 2019 that qualified for the study using the Indian stock market. The first finding shows a negative association between financial leverage and gender diversity. The second finding shows that the implementation of CSR disclosure hurts the improvement of gender diversity. The third finding shows that CSR expenditure improves gender diversity of listed firms in an emerging market. The fouth finding shows that CSR expenditure positively mediates the negative association between financial leverage and gender diversity. The fifth finding shows that CSR disclosure does not mediate the association between financial performance (return on assets, price to book ratio and financial leverage). The sixth finding shows that CSR expenditure negatively moderates the negative association between return on assets and gender diversity.

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