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dc.contributor.authorChowdhury, Anup
dc.contributor.authorBarua, Suborna
dc.date.accessioned2010-10-11T05:59:03Z
dc.date.available2010-10-11T05:59:03Z
dc.date.issued2009
dc.identifier.urihttp://hdl.handle.net/10361/449
dc.description.abstractFinancial distress is a situation where a firm’s operating cash flows are not sufficient to satisfy current obligations and the firm is forced to take corrective actions, and a firm in financial distress may also face bankruptcy or liquidation to meet its liabilities. Financial distress can be caused by losses, dividend reduction or bankruptcy. A good way to measure the possibility of bankruptcy is to use Z score model (Altman, 1968). This paper uses the Z score model to predict risk of financial distress of Z category companies listed in Dhaka Stock Exchange (DSE). Results suggest that five of fifty three companies are out of danger while seven of those are in the gray area. Evidently, forty one of the companies are operating with high distress risk as suggested by the model result. Therefore ninety percent of the companies are suffering from financial distress risk due to very poor management capability and operating inefficiency although its reflection to the stock price is absent from the market in many instances. The Altman’s Z score, model though may not be fully applicable for companies in Bangladesh, yet proves its strong validity and correctness in predicting distressful status of the Z category companies.en_US
dc.language.isoenen_US
dc.publisherBRAC Universityen_US
dc.relation.ispartofseriesBRAC University Journal, BRAC University;Vol.6, No.1,pp. 45-58
dc.subjectFinancial distressen_US
dc.subjectAltman Z scoreen_US
dc.subjectBankruptcy predictionen_US
dc.subjectDiscriminat analysisen_US
dc.subjectZ category sharesen_US
dc.subjectCompany failureen_US
dc.titleRationalities of Z-category shares in Dhaka stock exchange: are they in financial distress risk?en_US
dc.typeArticleen_US


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