Men have always been interested in predicting different events, such as financial distress in different firms.
In this research also has been tried to answer if it is possible to predict financial distress on the base of financial ratios, and if the answer is yes, to present a model in order to distinguish these two groups on the base of the Tobin's Q.
By applying Multiple Discriminant Analysis (M.D.A.) and SPSS for data analysis, the conclusion shows that the following five financial ratios can do this distinguishment.
- Earning before tax to current debt
- Market valve to debt
- Return on asset
- Retained profit to asset
- Long debt to asset
Shariatpannahi,M and Shorabi Araghi,M . (2006). Predicting Iranian Firm Financial Distress: A New Mode. Empirical Studies in Financial Accounting, 4(16), 19-41.
MLA
Shariatpannahi,M , and Shorabi Araghi,M . "Predicting Iranian Firm Financial Distress: A New Mode", Empirical Studies in Financial Accounting, 4, 16, 2006, 19-41.
HARVARD
Shariatpannahi M, Shorabi Araghi M. (2006). 'Predicting Iranian Firm Financial Distress: A New Mode', Empirical Studies in Financial Accounting, 4(16), pp. 19-41.
CHICAGO
M Shariatpannahi and M Shorabi Araghi, "Predicting Iranian Firm Financial Distress: A New Mode," Empirical Studies in Financial Accounting, 4 16 (2006): 19-41,
VANCOUVER
Shariatpannahi M, Shorabi Araghi M. Predicting Iranian Firm Financial Distress: A New Mode. Empirical Studies in Financial Accounting. 2006;4(16):19-41 (In Persian).
