Association of financial distress and predicted bankruptcy: the case of Pakistani banking sector
The banking sector is one of the most important sectors in Pakistan’s struggling economy. Recent studies have recommended that suitable methods can be applied to predict bankruptcy. In this context, this work analyzes Pakistan’s banking sector’s financial status through the five-factor Altman Z-scor...
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| Veröffentlicht in: | The Journal of Asian finance, economics, and business 2021, Economics and Business , 8(1), 37, pp.573-585 |
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| 1. Verfasser: | |
| Format: | Artikel |
| Sprache: | eng |
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| Online-Zugang: | Volltext |
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| Zusammenfassung: | The banking sector is one of the most important sectors in Pakistan’s struggling economy. Recent studies have recommended that suitable methods can be applied to predict bankruptcy. In this context, this work analyzes Pakistan’s banking sector’s financial status through the five-factor Altman Z-score model, which determines the probability of bankruptcy for an organization. Banking data has been collected through the Pakistan Stock Exchange (PSX) in the period 2013-2017. The Z-score assessment criteria is defined as: Z> 2.99 - “safe” zone; Z> 1.8 Z>2.98- “grey” zone; and Z |
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| ISSN: | 2288-4637 2288-4645 |
| DOI: | 10.13106/jafeb.2021.vol8.no1.573 |