2023
DOI: 10.1080/23322039.2023.2186038
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The determinants of financial distress cost: A case of emerging market

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Cited by 7 publications
(9 citation statements)
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“…The growth of technical reserves can serve as a signal of the company's growing obligations resulting from insurance transactions. A higher ratio of technical reserve growth provides an indication of the increasing liabilities of the company in terms of claims that need to be covered, thereby increasing the risk for the insurance company as well (Farooq et al 2023;Khaliq et al 2014;Manggarini, 2023). This condition raises the possibility of financial distress.…”
Section: Technical Reserve Growth Ratio and Financial Distress Predic...mentioning
confidence: 99%
See 1 more Smart Citation
“…The growth of technical reserves can serve as a signal of the company's growing obligations resulting from insurance transactions. A higher ratio of technical reserve growth provides an indication of the increasing liabilities of the company in terms of claims that need to be covered, thereby increasing the risk for the insurance company as well (Farooq et al 2023;Khaliq et al 2014;Manggarini, 2023). This condition raises the possibility of financial distress.…”
Section: Technical Reserve Growth Ratio and Financial Distress Predic...mentioning
confidence: 99%
“…Prior studies (Farooq et al 2023;Khaliq et al 2014;Manggarini, 2023) have established that companies facing higher increases in liabilities are at a heightened risk of encountering financial distress. Furthermore, relatively high technical reserves may indicate an uneven business portfolio over the year, leading to a higher proportion of unearned premium reserves.…”
Section: Relationship Between the Technical Reserves Growth Ratio (Tr...mentioning
confidence: 99%
“…The extant literature in this field indicates that firm-specific factors exert a significant influence on the liquidity of entities. Among the most commonly cited factors are profitability, asset structure and debt levels [8][9][10]12,13,16]. This relationship was subsequently employed further in the paper to identify potential moderators of the relationship between macroeconomic variables and liquidity.…”
Section: Literature Review and Research Questionsmentioning
confidence: 99%
“…Scientific evidence is relatively scarce. While research on the impact of macroeconomic factors on firm performance has been conducted [3][4][5][6], the analysis of the determinants of firm liquidity has been less frequently conducted and has generally focused on firm-specific factors [7][8][9][10][11][12][13][14][15][16][17]. Studies on the impact of macroeconomic factors on corporate liquidity are much less frequent, but point to the importance of macroeconomic factors [18][19][20].…”
Section: Introductionmentioning
confidence: 99%
“…This issue is connected to the firm's leverage position: the need for debt to meet operational requirements. The source of financing should be carefully evaluated during decision-making process because the high cost of financing may cause financial distress (Chen and Yu, 2011;Garcia-Appendini, 2018;Farooq et al, 2023). Therefore, it is important to examine the association between export intensity and leverage.…”
Section: Introductionmentioning
confidence: 99%