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Analysis of financial distress across countries: Using macroeconomic, industrial indicators and accounting data

Analysis of financial distress across countries: Using macroeconomic, industrial indicators and accounting data
Analysis of financial distress across countries: Using macroeconomic, industrial indicators and accounting data
This paper applies three-way multidimensional scaling and cluster analysis to examine the nature of insolvency in the Gulf Corporation Council, the United Kingdom and the United States of America between from 2004 to 2012. The findings of this paper reveal that analyzing the financial statements data with indicators of industrial and macroeconomic, provide a better understanding of the performance of the solvent and insolvent firms cross-counties. The results proved that the financial health of firms should be examined in situ within the local macro environment. There is also a clear implication for managers of firms as paying most of one's attention to one aspect of financial performance appears to increase the risk of insolvency.
1057-5219
Khoja, Layla
f6413b59-8714-43c1-ad4c-db2d289782b6
Chipulu, Maxwell
12545803-0d1f-4a37-b2d2-f0d21165205e
Jayasekera, IR
1788723e-6a7e-4302-9358-26acd64ea204
Khoja, Layla
f6413b59-8714-43c1-ad4c-db2d289782b6
Chipulu, Maxwell
12545803-0d1f-4a37-b2d2-f0d21165205e
Jayasekera, IR
1788723e-6a7e-4302-9358-26acd64ea204

Khoja, Layla, Chipulu, Maxwell and Jayasekera, IR (2019) Analysis of financial distress across countries: Using macroeconomic, industrial indicators and accounting data. International Review of Financial Analysis, 66. (doi:10.1016/j.irfa.2019.101379).

Record type: Article

Abstract

This paper applies three-way multidimensional scaling and cluster analysis to examine the nature of insolvency in the Gulf Corporation Council, the United Kingdom and the United States of America between from 2004 to 2012. The findings of this paper reveal that analyzing the financial statements data with indicators of industrial and macroeconomic, provide a better understanding of the performance of the solvent and insolvent firms cross-counties. The results proved that the financial health of firms should be examined in situ within the local macro environment. There is also a clear implication for managers of firms as paying most of one's attention to one aspect of financial performance appears to increase the risk of insolvency.

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Financial Distress paper_REVIEWED - Accepted Manuscript
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More information

Accepted/In Press date: 12 August 2019
e-pub ahead of print date: 20 August 2019
Published date: November 2019

Identifiers

Local EPrints ID: 433437
URI: https://eprints.soton.ac.uk/id/eprint/433437
ISSN: 1057-5219
PURE UUID: 2560123f-151d-40bd-8abe-7efadcc9c6ae
ORCID for Maxwell Chipulu: ORCID iD orcid.org/0000-0002-0139-6188

Catalogue record

Date deposited: 22 Aug 2019 16:30
Last modified: 20 Nov 2019 01:37

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