IDEAS home Printed from https://ideas.repec.org/a/ids/gbusec/v25y2021i1p40-50.html
   My bibliography  Save this article

Understanding distress and default in Jordanian companies using multiple discriminant analysis

Author

Listed:
  • Malik R. Elhaj

Abstract

A business may fail because of financial or non-financial reasons but if this failure can be predicted it can be avoided. Thus, it becomes imperative that reasons and variables involved in such failures be studied. This research is focused on default risk and failures in Jordanian companies based on internal factors. The study uses financial data of 49 companies for the time period 2015-2017. The methodology includes qualitative analysis and multi discriminant analysis to analyse and interpret distress and failures in companies. One significant finding from the analysis was that sales, equity capital, retained earnings and debt are good predictor of defaults in companies.

Suggested Citation

  • Malik R. Elhaj, 2021. "Understanding distress and default in Jordanian companies using multiple discriminant analysis," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 25(1), pages 40-50.
    • Handle: RePEc:ids:gbusec:v:25:y:2021:i:1:p:40-50
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=116618
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:gbusec:v:25:y:2021:i:1:p:40-50. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=168 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.