Predicting financial distress of insurance firms in Malaysia: an empirical test of firms financial ratios / Nudhira Abdul Aziz

Abdul Aziz, Nudhira (2013) Predicting financial distress of insurance firms in Malaysia: an empirical test of firms financial ratios / Nudhira Abdul Aziz. [Student Project]

Abstract

Financial distress can be defined as a condition where a company cannot meet or has difficulty paying off its financial obligations (Wruck. K. H. , 1990). A company under financial distress is related to the situation such as insolvency. Like other firms, insurance firms also face financial distress. There are several insurance firms are takeover by other insurance firms because of mismanagement and lack monetary resources moreover it was more difficult to see the performance of insurance firms from the beginning to the present. The objectives of this research are to examine financial distress that faced by insurance firms in Malaysia and to identify financial ratios (liquidity ratio, profitability ratio and debt ratio) that has significantly predict financial distress of insurance company in Malaysia. The method that were used in this research is panel data analysis. The data are gathered from annual report of insurance firms in Malaysia. The results of the study shows that Net Profit Margin (NPM), Return on Equity (ROE), and Debt to Equity Ratio (DTER) are significant and simultaneously will affect on an insurance firms performance especially when to detect the existence of financial distress.

Metadata

Item Type: Student Project
Creators:
Creators
Email / ID Num.
Abdul Aziz, Nudhira
2010151911
Contributors:
Contribution
Name
Email / ID Num.
Thesis advisor
Mohamed Yousop, Nur Liiyana
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance
H Social Sciences > HG Finance > Insurance
H Social Sciences > HG Finance > Insurance > Insurance business. Insurance management
Divisions: Universiti Teknologi MARA, Johor > Segamat Campus > Faculty of Business and Management
Programme: Bachelor of Business Adminitrations (HONS) Islamic Banking
Keywords: Financial distress; Insurance
Date: 2013
URI: https://ir.uitm.edu.my/id/eprint/69165
Edit Item
Edit Item

Download

[thumbnail of 69165.pdf] Text
69165.pdf

Download (270kB)

Digital Copy

Digital (fulltext) is available at:

Physical Copy

Physical status and holdings:
Item Status:
On Shelf

ID Number

69165

Indexing

Statistic

Statistic details