مقاله انگلیسی در مورد پیش بینی مشکلات مالی در بازارهای نوظهور
Abstract
Keywords
Introduction
Review of related literature and research hypothesis
Empirical methodology
Conclusion and implications
Declaration of Competing Interest
References
ABSTRACT
This study explores the main determinants of financial distress in 11 emerging countries. Using two-way cluster-robust standard errors, evidence shows that matured, profitable, liquid, small firms with high market-to-book ratio and low growth in assets are less prone to financial distress. Moreover, well-developed financial markets in countries with low levels of corruption reduce financial distress. Furthermore, it uses tests for equality between coefficients and moderates multiple regressions to capture the effect of firm life cycle on financial distress, over three Arab Spring sub-periods. The results imply adopting strategies to increase earned capital and cash holdings, avoid over-investment, and facilitate risk diversification strategies.
Introduction
Recently, the Middle East and North Africa (MENA) region has been facing several challenges, such as civil wars, political instability, high unemployment rate, low oil prices, and economic fragility. Governments across the region are undertaking various economic reform plans and development strategies to foster economic growth, and the World Bank expects regional growth to improve in coming years. These events may increase the probability of firm financial distress in the region. Therefore, these events also motivate this study to examine empirically the effect of the Arab Spring on firm distress to develop policies and restructuring strategies that help firms recover.