Macroeconomic Determinants of Corporate Failures in Malaysia

Ahmad, Abd Halim; Daud, Siti Nurazira Mohd; Marzuki, Ainulashikin

doi:10.5539/ijbm.v3n3p3

Cited by 11 publications

(9 citation statements)

References 174 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…On the control variables, GDP was negative and insignificant except for the developing country sample. Findings by Ahmad et al (2009) also show that GDP reduces the corporate failure in their study. An increasing GDP indicates that businesses would, on average, record higher levels of profit, which has a propensity for lowering business failure.…”

Section: [Insert Tables 5 and 6 About Here]mentioning

confidence: 61%

Terrorism and country-level global business failure

Tingbani

Okafor

Tauringana

et al. 2019

Journal of Business Research

View full text Add to dashboard Cite

This paper contributes to the literature on business failure by investigating the relationship between terrorism and country-level global business failure by using a sample of 174 countries over the period 2009-2015. To proxy for business failure, the 'Resolving Insolvency' index, which is a component of the World Bank's 'Doing Business' index, was adapted and used. The results of the fixed-effects estimation show that terrorism has a positive and significant relationship with business failure for the full sample. When the sample is divided into developed, developing and fragile states, the results show that terrorism is positively and significantly related with business failure in developing and fragile states only. Estimates show that for every 100 terrorist incidents, business failure increases by 1% and 0.7% points, in South Asia and Sub Saharan Africa (SSA) countries, respectively. The findings contribute to our understanding of the effects of terrorism on business failure, and how this differs depending on whether the country is developing, developed, or is a fragile state.

show abstract

Section: [Insert Tables 5 and 6 About Here]mentioning

confidence: 61%

Terrorism and country-level global business failure

Tingbani

Okafor

Tauringana

et al. 2019

Journal of Business Research

View full text Add to dashboard Cite

show abstract

“…Bhattacharjee et al (2009) observe that macroeconomic conditions have a significant impact on bankruptcy of the US and the UK firms. Ahmad, Daud, and Marzuki (2009) show that movements in GDP, inflation and interest rates are co-integrated with the changes in corporate failure rates. Levy and Bar-niv (1987) confirm that fluctuations in income and price levels have an adverse impact on the performance of the business firms.…”

Section: Review Of Literaturementioning

confidence: 99%

Corporate Performance during Business Cycles: Evidence from Indian Manufacturing Firms

Lagesh

Srikanth

Acharya

2018

Global Business Review

View full text Add to dashboard Cite

The present study is an attempt to assess the ‘probability of incurring loss’ of manufacturing firms in India during different phases of business cycles. We use data on a sample of 87 manufacturing companies for the period from 2002 to 2014 (comprising 1131 firm years). We use the panel logit model with the dependent variable derived from the return on assets to empirically test the hypothesis. Besides, we use firm-specific variables and macroeconomic variables as independent variables in the model. Firm-specific variables, namely size of the firm and interest coverage ratio and macroeconomic variables namely exchange rate, bank credit, inflation, interest rate and index of industrial production are statistically significant in predicting the probability of incurring loss of the firms during the study period. The results are important for investors, corporate houses, managers, lenders, policymakers and the research community as business cycles have a visible impact on all functional areas of an organization. Our study assumes significance because of the importance of macroeconomic variables in the strategic decision-making of the corporate sector in general and manufacturing firms in particular.

show abstract

“…Rus, 2008;Ahmad, Mohd, Rizal & Marzuki, 2008;Md-Rus, Nisham, Abdul Latif, & Nadakkavil, 2013;Norfian, 2013;Zulkarnian, Ali, Md. Nasir, & Mohamad 2001;Zulridah, 2012).…”

Section: Introductionmentioning

confidence: 99%