Evaluating Financial Performance of Saudi Listed Firms: Using Statistical Failure Prediction Models
Journal Title: The International Journal of Business Ethics and Governance - Year 2019, Vol 2, Issue 1
Abstract
The study aims to compare the classification power of three statistical failure prediction models: Altman model 1968, Kida model, and Zmijewski. The purpose is to evaluate the financial performance of Saudi listed firms. The study sample consists of 122 listed industrial companies on the Saudi Stock Exchange for the period from 2014 to 2016. The results show that Zmijewski model is a more powerful tool in predicting the financial performance of Saudi listed firms than Altman model (1986), and Kida model. In addition, the results showthat there are statistical relationships between some ratios included in the three models and the financal performance of industrial companies, which was measured by EPS. The study recommended users of financial statements of Saudi listed companies use Zmijewski model, which performs well in evaluating their finacial position to be used when making the financial decisions.
Authors and Affiliations
Deena Saleh Merza Radhi, Adel Sarea
Keywords
Related Articles
- EP ID EP692465
- DOI https://doi.org/10.51325/ijbeg.v2i1.20
- Views 239
- Downloads 0
Challenges and Difficulties facing Islamic Financial Inclusion in Women's Economic Empowerment in Yemen: Qualitative Approach
The study aimed to explore the challenges and difficulties faced by Islamic financial inclusion through Islamic financial institutions (banks, microfinance, insurance) in women's economic empowerment in Yemen. This will...
Entrepreneurship Ecosystem in Arab World: the status quo, impediments and the ways forward
This paper attempts to provide a holistic understanding of the environment in which entrepreneurs and SMEs and startups operate; the so-called entrepreneurial ecosystem in 22 Arab countries and proposes ways forward to s...
The Importance of the Accounting Disclosure as a Mediator Factor between the Shareholders of the Cash Waqf in the Kingdom of Saudi Arabia: The Theory of Planned Behavior
The study aimed to clarify the importance of accounting disclosure on the behavior of Cash Waqf (endowments) contributors through the theoretical approach and literature review. In addition, the study tests whether oblig...
The Impact of Intellectual Capital on Corporate Performance of IT Companies: Evidence from Bursa Istanbul
This study aimed to investigate the impact of intellectual capital (IC) on corporate performance of IT companies listed on Borsa Istanbul for the period of 2004-2015. Value Added Intellectual Coefficient (VAIC) approach...
The Role of Islamic Legitimacy Basis to Combat the Financial Corruption in Kuwait
The study aims to identify the role of Islamic Sharia to alleviate the problem of financial corruption in Kuwait. The researchers rely on the descriptive method. An extensive literature review was performed with regards...