TY  - JOUR
TI  - Anticipating financial distress in monster sectors of Pakistan’s economy: an application of logit
AU  - Hassan, Ehsanul
AU  - Awais-E-Yazdan, Muhammad
AU  - Birau, Ramona
AU  - Paliu-Popa, Lucia
T2  - Industria Textila
AB  - It’s always been worthwhile for companies to identify significant predictors of financial distress before its occurrence.
This study intends to analyse the scenario of financial distress prediction by focusing on Pakistan. The sample of the
study covers companies from the three biggest sectors (textile, sugar and cement)listed on the Pakistan stock exchange
for the period of 2005 to 2020. The financial ratios are divided into four main categories of profitability, liquidity, leverage
and asset efficiency with a total of 18 financial ratios. The results indicate that the financial ratio produced model
accuracy rates of 90.11 percent for the first year prior to bankruptcy, 87.72 percent for the second year prior to
bankruptcy, 85.32 percent for the third year prior to bankruptcy, 82.36 percent for the fourth year prior to bankruptcy and
79.57 percent for the fifth year prior to bankruptcy. The results also indicate that profitability, liquidity, leverage, and asset
efficiency, are significant predictors of financial distress. The study provides a useful financial distress prediction model
for policymakers, company managers, investors, lenders and creditors in the Pakistan stock exchange.
DA  - 2023/06/30/
PY  - 2023
DO  - 10.35530/IT.074.03.2022105
DP  - DOI.org (Crossref)
VL  - 74
IS  - 03
SP  - 363
EP  - 370
SN  - 12225347
ST  - Anticipating financial distress in monster sectors of Pakistan’s economy
UR  - http://revistaindustriatextila.ro/images/2023/3/14%20EHSANUL%20HASSAN%20INDUSTRIA%20TEXTILA%20no.3_2023.pdf
Y2  - 2023/07/02/13:02:49
ER  -