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 335
- Downloads 0
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...
A Review of Auditors’ GCOs, Statistical Prediction Models and Artificial Intelligence Technology
The main aim of this study is to give an overview of literature in accounting and finance regarding the performance of Auditors’ GCOs, Statistical Failure Prediction Models (SFPMs), and Artificial Intelligence Technology...
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...
Assessing the Relationship between Rewards and Employees’ Motivation in Some Selected Non-Profit Organizations in Abuja, Nigeria
The objective of this study is to examine the extent to which reward management system has an impact on the motivation of employees working in four selected non-profit organizations in Abuja, Nigeria. More specifically...
The Impact of IFRS Adoption on Earnings Management Activities and Value Relevance of Accounting Information: Applied Study
This study focused on the economic benefits of the adoption of IFRS. More specifically, this study emphasis whether the quality of the accounting information has been improved after the adoption of IFRS. The study invest...