IDEAS home Printed from https://ideas.repec.org/a/pkp/ijobem/v9y2022i5p162-174id3207.html
   My bibliography  Save this article

Predicting the Bankruptcy of Cement Companies in Bangladesh: A Study on Dhaka Stock Exchange

Author

Listed:
  • Emranul Hoque
  • Tarik Hossain
  • Trina Saha

Abstract

The financial status of a company can be measured and predicted using a variety of tools, techniques, and models like ratio analysis, vertical and horizontal analysis, etc. The objective of this study is to identify the bankruptcy position of Bangladeshi-listed cement companies. The Altman Z-Score model has been used here to assess the intensity of insolvency of Bangladeshi cement businesses with listings on Dhaka Stock Exchange (DSE) considering financial information from 2018 to 2021 using Altman Z-Score model. The data has been analyzed using Statistical Package for Social Sciences (version 28.0.1.1) and also Microsoft excel. DSE currently lists seven (07) cement companies. According to the research, Heidelberg Cement Limited and Lafarge Holcim Bangladesh Limited are in the secure region having the maximum Z value of 33.47 and the minimum Z value is 3.17. Confidence Cement Limited, Meghna Cement Limited and Crown Cement Limited in 2021 are in the grey region having the maximum Z value of 2.71 and the minimum Z value of 1.82. Aramit Cement Limited, Crown Cement Limited, and Premier Cement Mills Limited are in the bankrupt region having the Z value of less than 1.80. These three companies must outperform in sales with the improvement in operational costs to overcome bankruptcy. We found a positive correlation between all of the five independent variables and the dependent variable (Z Score).

Suggested Citation

  • Emranul Hoque & Tarik Hossain & Trina Saha, 2022. "Predicting the Bankruptcy of Cement Companies in Bangladesh: A Study on Dhaka Stock Exchange," International Journal of Business, Economics and Management, Conscientia Beam, vol. 9(5), pages 162-174.
    • Handle: RePEc:pkp:ijobem:v:9:y:2022:i:5:p:162-174:id:3207
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/62/article/view/3207/7218
    Download Restriction: no
    File URL: https://archive.conscientiabeam.com/index.php/62/article/view/3207/7226
    Download Restriction: no
    ---><---

    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:pkp:ijobem:v:9:y:2022:i:5:p:162-174:id:3207. 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: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/62/ .

    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.