scholarly journals A study of the economic and financial analysis for social firms: are they really businesses?

2020 ◽  
Vol 23 (2) ◽  
pp. 139-147
Author(s):  
Vera Gelashvili ◽  
María del Mar Camacho-Miñano ◽  
María Jesús Segovia-Vargas
Keyword(s):  
Financial Distress ◽  
Financial Analysis ◽  
Empirical Studies ◽  
Social Enterprises ◽  
Ratio Analysis ◽  
Z Score ◽  
Academic Literature ◽  
Different Types ◽  
High Level

El principal objetivo de esta investigación es analizar la situación económico- financiera de las empresas sociales a través del análisis de ratios, mostrando sus fortalezas y debilidades basándonos en la información contable. La muestra está formada por 118 empresas sociales situadas en la Comunidad Autónoma de Madrid en España. Para analizar los datos se han utilizado ratios económico-financieros y el indicador de estrés financiero, el Z' -score de Altman. Nuestros resultados destacan que las empresas sociales son negocios con una elevada rentabilidad, especialmente para sus socios. De este modo, está garantizada su supervivencia en el largo plazo y con un nivel de liquidez óptimo. Este estudio es una importante contribución para la literatura académica porque establece una comparación entre dos tipos de negocios sociales centrándonos en su estructura financiera y económica, completando la escasez de estudios empíricos sobre estas empresas. The main objective of this research paper is to analyze the economic and financial situation of social enterprises through ratio analysis and show their strengths and weaknesses based on financial data. The sample consists of 118 social companies operating in the Autonomous Community of Madrid in Spain. For data analysis, economic and financial analysis has been carried out, using ratio analysis and the indicator of financial distress: the Altman Z'-score. Our findings highlight that social companies, are businesses with a high level of profitability, especially for their partners. Thus, their survival, on average, is guaranteed in the long-term and their liquidity level is optimum. This study is an important contribution for the academic literature, because it carries out a comparison amongst the two different types of social firms, focusing on their economic and financial structure, diminishing the lack of empirical studies about these companies.

scholarly journals Financial distress prediction of listed companies – empirical evidence on the Vietnamese stock market

2020 ◽  
Vol 17 (2) ◽  
pp. 377-388
Author(s):  
Tran Quoc Thinh ◽  
Dang Anh Tuan ◽  
Nguyen Thanh Huy ◽  
Tran Ngoc Anh Thu
Keyword(s):  
Stock Market ◽  
Financial Distress ◽  
Financial Statements ◽  
Listed Companies ◽  
Research Model ◽  
Z Score ◽  
Economic Decisions ◽  
Financial Distress Prediction ◽  
Distress Prediction ◽  
High Level

Financial distress is a matter of concern in the recent period as Vietnam gradually enters global markets. This paper aims to examine the factors of Altman Z-score to detect the financial distress of Vietnamese listed companies. The authors use a sample of 30 delisted companies due to financial problems and 30 listed companies on the Vietnamese stock market from 2015 to 2018. They employ Independence Samples T-test to test the research model. It is found that there are significant differences in the factors of Altman Z-score between the group of listed companies and the group of delisted companies. Further analyses using subsamples of delisted companies show that the factors of Altman Z-score are also statistically different between companies with a low level of financial distress and those with a high level of financial distress. Based on the results, there are some suggestions to assist practitioners and the State Securities Commission in detecting, preventing, and strictly controlling financially distressed businesses. These results also enable users of financial statements to make more rational economic decisions accordingly.

scholarly journals Financial Distress Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia

2021 ◽  
Vol 2 (2) ◽  
pp. 237-246
Author(s):  
Martinus Robert Hutauruk ◽  
Mansyur Mansyur ◽  
Muhammad Rinaldi ◽  
Yisar Renza Situru
Keyword(s):  
Financial Distress ◽  
Financial Analysis ◽  
Stock Exchange ◽  
Bankruptcy Prediction ◽  
Stock Index ◽  
Risk Level ◽  
Food And Beverage ◽  
Community Information ◽  
High Level ◽  
Prediction Approach

Companies engaged in the food and beverage business have a very high chance of success in running their business, given the increasingly high level of food and beverage consumption for the community. Information based on financial ratios needs to be improved in other forms of financial analysis to ascertain the future risk level. The purpose of this study is to analyze financial distress for food and beverage sub-sector companies listed on conventional stocks and Islamic stocks on the Indonesia Stock Exchange in the period 2015-2020. Financial distress analysis uses the Altman Z-Score bankruptcy prediction approach. The results of the study indicate that companies that experience accounting losses do not necessarily experience financial distress. Companies whose shares are listed on the Sharia stock index tend to experience healthier financial conditions and do not experience financial distress. Sharia shares of food and beverage sub-sector companies on the Indonesia Stock Exchange have good resistance to financial distress. This is supported by the high and stable value of Inti Agri Resources' shares compared to the shares of other companies.

scholarly journals INNOVATION CLUSTERS AS AN ASSOCIATION MODEL OF THE SMALL AND MEDIUM-SIZED ENTERPRISES: THE CONTEXT OF REGIONAL DEVELOPMENT

2020 ◽  
Author(s):  
Ivana Kostadinović ◽  
◽  
Sunčica Stanković ◽  
Keyword(s):  
Regional Development ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Added Value ◽  
Western Balkans ◽  
Services Sector ◽  
High Level ◽  
Medium Enterprises ◽  
Innovation Clusters

Numerous empirical studies have long been indicated the importance of business infrastructure for economic and regional development. Ensuring long-term economic growth, as well as the creation and development of small and medium enterprises (SMEs), as key drivers of the development of modern economies, requires a high level of efficiency and flexibility of business infrastructure. In the Western Balkans, the absence of a coherent business infrastructure network is the biggest obstacle to the rapid growth of their economies. For this reason, the activities of the Western Balkan governments in the future should be aimed at developing a network of business infrastructure in order to increase the share of the knowledge and services sector with high added value in the economic structure. This paper aims to point out the role of innovative clusters as a model of associating SMEs in the context of regional development.

scholarly journals ANALISIS KINERJA KEUANGAN UNTUK MEMPREDIKSI FINANCIAL DISTRESS MENGGUNAKAN METODE Z-SCORE PADA PT INDOFARMA, TBK (studi pada BEI periode 2012-2016)

2019 ◽  
Vol 1 (1) ◽  
Author(s):  
Danuk Windasari ◽  
Budi Rahayu ◽  
Marwita Andarini
Keyword(s):  
Financial Performance ◽  
Financial Distress ◽  
Secondary Data ◽  
Ratio Analysis ◽  
Z Score ◽  
Descriptive Data ◽  
Financial Position ◽  
Gray Area ◽  
Score Method ◽  
Quantitative Descriptive

Ratio analysis is one of the important tools to know the company's financial position. One of its uses is used to predict financial distress. The purpose of this study is to determine the company's financial performance in predicting financial distress at PT Indofarma Tbk through the Z-Score method for the period 2012-2016. The type of research used is quantitative descriptive. Data obtained from secondary data is through the site www.idx.co.id. The results showed that PT Indofarma Tbk in its financial performance in the years under study was less efficient or faced the threat of serious bankruptcy, whereas in the previous year the company was in a gray area or prone condition. Analisis rasio merupakan salah satu alat penting mengetahui posisi keuangan perusahaan. Salah satu kegunaanya digunakan untuk memprediksi financial distress. Tujuan penelitian ini untuk mengetahui kinerja keuangan perusahaan dalam memprediksi fianancial distress pada PT Indofarma Tbk meflalui metode Z-Score periode 2012-2016. Jenis penelitian yang digunakan deskriptif kuantitatif. Data yang diperoleh dari data sekunder yaitu melalui situs www.idx.co.id. Hasil penelitian menunjukkan bahwa PT Indofarma Tbk dalam kinerja keuangannya pada tahun-tahun yang diteliti kurang efisien atau menghadapi ancaman kebangkrutan serius, sedangkan ditahun sebelumnya perusahaan berada pada kondisi grey area atau rawan .

scholarly journals Leverage and Corporate Financial Distress in Nigeria: A Panel Data Analysis

2019 ◽  
Vol 3 (2) ◽  
pp. 26-38 ◽  
Author(s):  
Lucky Anyike Lucky ◽  
Agilebu Ogechi Michael
Keyword(s):  
Financial Distress ◽  
Manufacturing Firms ◽  
Equity Capital ◽  
Fixed Effect ◽  
Z Score ◽  
Financial Leverage ◽  
Total Debt ◽  
Equity Ratio ◽  
Positive Effect

This study examined the effect leverage on corporate financial distress of quoted manufacturing firms in Nigeria. The objective is to examine if financial leverage have any effect on financial distress of the Nigeria firms. Cross sectional data was sourced from financial statement of ten quoted manufacturing firms. Z-Score and Changes in operating profits was proxy for corporate financial distress while debt equity ratio, short, long term debt and total debt to total assets were proxy for leverage. After cross examination of the validity of the pooled effect, fixed effect and the random effect, the study accepts the fixed effect model.  Findings reveal that financial leverage have positive effect on financial distress measured by the z-score while total debt ratio and debt equity ratio have positive effect on financial distress measured by changes on operating profits while  short term debt and long term debt have negative effect on operating profits. From the regression summary, the study concludes that leverage have significant effect on corporate financial distress. We recommend that Financial structure of the manufacturing firms ought to be adequately planned to safeguard the interest of the equity holders, shareholders and financial requirements of the firm and the firms should formulate policies of increasing its equity capital as oppose to debt and that Implementable investment policies should be formulated and the business environment should be well examined. Recognizing faults of investment might be paramount to develop the business’s financial performance, since it specifies the loopholes which corrective decision can be applied.

scholarly journals Financial Analysis of Startups Company PT. Limatra Innovation of Subang Honey Pineapple Beverage

2021 ◽  
Vol 8 (10) ◽  
pp. 478-485
Author(s):  
Wisnu Harinugroho ◽  
Rhian Indradewa ◽  
Tantri Yanuar Rahmat Syah
Keyword(s):  
Financial Planning ◽  
Fruit Juice ◽  
Financial Analysis ◽  
Practical Reasons ◽  
Strategic Decisions ◽  
Pineapple Juice ◽  
Start Up ◽  
Pineapple Fruit ◽  
High Level

Background – Pineapple is one of the most popular types of fruit. In addition to delicious fruit, pineapple fruit also has a very high vitamin C content. With a high level of community mobility and practical reasons, many people turn to packaged fruit juice drinks. PT Limatra is a startups company engaged in the trading business that sells various packaged fruit juices, with the product name "NasNas", with the main ingredient being pineapple from the Subang area, West Java. The product is not only original pineapple juice but also has a variety of flavors. As a start-up company, investment considerations are needed, which are useful for making decisions in the short and long term, financial planning is one important aspect for business continuity. Method – Using elements of financial planning, financial statement projections, investment feasibility analysis, and ratios for financial performance analysis. Result – Investment analysis can assist management in making strategic decisions, both short term and long term. Keywords: Investment, Fruit Juice Drink, Financial Analysis, Startups, Financial Modelling, Strategic Financial, Business Plan.

scholarly journals Predicting Financial Stability of Select BSE Companies Revisiting Altman Z Score

2014 ◽  
Vol 26 ◽  
pp. 92-105 ◽  
Author(s):  
Vineet Chouhan ◽  
Bibhas Chandra ◽  
Shubham Goswami
Keyword(s):  
Financial Distress ◽  
Financial Stability ◽  
Financial Analysis ◽  
Optimal Solution ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Z Score ◽  
Regulatory Capital ◽  
Explanatory Variables ◽  
Z Scores

In the era of globalization, prediction of financial distress is of interest not only to managers but also to external stakeholders of a company. The stakeholders are continuously seeking the optimal solution for performance forecasting, as a way to rationalize the decision-making process. The recent past shows that financial stability of companies is at the stake. Stockholders, Managers, Creditor and employees of the business are always concerned about financial stability of the companies. The most frequently tool for financial analysis is financial ratios. However, financial ratios are no-longer proved appropriate for „Stockholders‟ equity position and creditors‟ claims. Stakeholder‟s have concerns about the consequences of financial distress for companies, and controls of capital adequacy through the regulatory capital requirement (Mingo, 2000). This shared interest creates persistent investigations and continuing attempts to answer an incessant question that how financial distress can be predicted, or what reveals the credit risk of firms. For this purpose most commonly used tool is Altman Z score, but due to nature of the explanatory variables, financial distress prediction research has not reached an unequivocal conclusion. The primary goal of this paper is to analyze and reexamine the Altman Z score. In order to facilitate the current research, various ratios were taken from Altman‟s Z score. To fulfill our objective Z score ratios were used to divide sample firms into healthy and unstable among BSE-30 companies. First the Z score is calculated for 10 companies selected for this purpose for a period of 5 years each. And then it is divided as per z scores, later the significant in the changes in the ratio is calculated with the help of One sample Komogrov-Smirnow test, which resulted that the change in the z scores is not significant in case of all the companies.

Financial Analysis During the Pandemic and New Consumption

2021 ◽  
pp. 112-125
Author(s):  
Liliane Cristina Segura ◽  
Murillo Jose Torelli Pinto
Keyword(s):  
Financial Distress ◽  
Oil And Gas ◽  
Financial Analysis ◽  
Economic Consequences ◽  
Z Score ◽  
The Social ◽  
The World ◽  
Distressed Firms ◽  
The Mean ◽  
Oil And Gas Sector

The economic consequences of the COVID-19 pandemic are not yet known. It is, however, observed that the consumptions in the world have changed dramatically in 2020, and it will keep changing as the pandemic evolves. It is already observed that in consumer confidence, there is a change in the use of energy and petroleum. People are not moving a lot during this pandemic, and they also discovered that they might stay this way in some occasions. It is affecting the petrol sector, maybe one of the most affected in the pandemic, because of the social isolation. This chapter analyzed 44 companies from the oil and gas sector around the world in relation to their financial distress. The Altman´s Z-score was the methodology used, and the mean of the sector was compared with the five most distressed firms and the five least distressed. It is possible to observe that the sector suffered with this pandemic, and most of the companies are already in financial distress.

scholarly journals Relationship Between Banking Performance and Financial Distress: A Study on Banks of Bangladesh

2021 ◽  
Vol 7 (1) ◽  
pp. 15
Author(s):  
Ajaan Rahman Khan ◽  
Chinmoy Das Gupta ◽  
Md. Ali Ashraf
Keyword(s):  
Linear Regression ◽  
Financial Distress ◽  
Banking Industry ◽  
Stock Exchange ◽  
Z Score ◽  
Low Level ◽  
Financial Strength ◽  
High Level

Banking is said to be one of the most successful industries in the economy of Bangladesh. The aim of this study is to check the existence of a relationship between the financial strength (or distress), measured through Altman Z-score, and banking performance, measured using Return of Equity (ROE), of the banks of Bangladesh listed in the Dhaka Stock Exchange (DSE). The paper thoroughly analyzes and describes the data associated with these two variables, and a linear regression has been conducted between these two variables to ascertain the level and direction of their relationship. The trends of Z-score over the five years from 2015 to 2019 (inclusive) have been tested. The analysis discloses that the z-score is a statistically significant predictor of the ROE in the banking industry. Although, the industry shows a low level of Z-score indicating a high level of financial distress among the banks studied, this study implies that an increase in Z-score will result in an increase of ROE.

scholarly journals Applications of Distress Prediction Models: What Have We Learned After 50 Years from the Z-Score Models?

2018 ◽  
Vol 6 (3) ◽  
pp. 70 ◽  
Author(s):  
Edward I. Altman
Keyword(s):  
Financial Distress ◽  
Prediction Models ◽  
Empirical Studies ◽  
Warning Signal ◽  
Bankruptcy Prediction ◽  
Z Score ◽  
Multivariate Statistical ◽  
Practical Applications ◽  
Multivariate Statistical Model ◽  
Credit Risk Measurement

Fifty years ago, I published the initial, classic version of the Z-score bankruptcy prediction models. This multivariate statistical model has remained perhaps the most well-known, and more importantly, most used technique for providing an early warning signal of firm financial distress by academics and practitioners on a global basis. It also has been used by scholars as a benchmark of credit risk measurement in countless empirical studies. Practical applications of the Altman Z-score model have also been numerous and can be divided into two main categories: (1) from an external analytical standpoint, and (2) from an internal to the distressed firm viewpoint. This paper discusses a number of applications from the former’s standpoint and in doing so, we hope, also provides a roadmap for extensions beyond those already identified.

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