Prediction of Corporate Recovery in Malaysia

Haji-Abdullah, Noor Marini; Ismail, Norashikin; Sinnadurai, Philip

doi:10.2139/ssrn.3318060

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Prediction of Corporate Recovery in Malaysia

2019 Financial Markets & Corporate Governance Conference

26 Pages Posted: 19 Jan 2019 Last revised: 16 Apr 2020

See all articles by Noor Marini Haji-Abdullah

Philip Sinnadurai

Macquarie University; Macquarie University, Macquarie Business School

Date Written: January 18, 2019

Abstract

Using data from Malaysia, we investigate prediction of recovery by distressed companies, during the period 2003-2016. We use logistic regressions to estimate versions of traditional recovery prediction models, augmented with indicators of distress severity and regularization plan type. The financial indicators are industry-adjusted. The results support our hypotheses, indicating that recovery is more likely if distress is diagnosed at early stages and if an operational versus strategic recovery plan is followed.

Keywords: Financial Distress, Corporate Recovery, Malaysia, Practice Note 17

JEL Classification: G33, G38

Suggested Citation: Suggested Citation

Haji-Abdullah, Noor Marini and Ismail, Norashikin and Sinnadurai, Philip Thiagan, Prediction of Corporate Recovery in Malaysia (January 18, 2019). 2019 Financial Markets & Corporate Governance Conference, Available at SSRN: https://ssrn.com/abstract=3318060 or http://dx.doi.org/10.2139/ssrn.3318060