Prediction of Corporate Recovery in Malaysia

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

See all articles by Noor Marini Haji-Abdullah

Noor Marini Haji-Abdullah

Universiti Teknologi MARA (UiTM)

Norashikin Ismail

Universiti Teknologi MARA

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

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

Noor Marini Haji-Abdullah

Universiti Teknologi MARA (UiTM) ( email )

40450 Shah Alam
Johor
Dungun, Selangor 23000
Malaysia

Norashikin Ismail

Universiti Teknologi MARA ( email )

Menara SAAS
Level 11, UiTM
Shah Alam, Selangor 40500
Malaysia

Philip Thiagan Sinnadurai (Contact Author)

Macquarie University ( email )

North Ryde
Sydney, New South Wales 2109
Australia
+61 2 9850-7101 (Phone)
+61 2 9850-8497 (Fax)

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

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