umu.sePublications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The Road to Bankruptcy: A study on Predicting Financial Distress in Sweden
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Business Administration.
2014 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis aims to study whether cash flow ratios can predict corporate financial distress in Sweden by employing multiple discriminant analysis. It was inspired by the Altman Z-score, which was adjusted for this aim. This study adopted a positivist epistemology and objectivist ontology. The research approach taken was a deductive one which employed quantitative methods in testing the hypotheses developed. The hypotheses were tested through means of accuracy and the Independent Samples Test. In order to identify financial distress a proxyratio was adopted. This proxy was the operating cash flow ratio. The sample consisted of 227 firms in total within the retail- and service industries. The time period covered 2000-2013. It was found that the proxy was unable to separate firms into distressed and nondistressedgroups, but rather classified all firms as distressed. Furthermore, the other ratios also failed to do any classification. Therefore, what the question that this study set out to answer came to the conclusion; cash flow ratios cannot predict corporate financial distress for retail and service companies in Sweden.

Place, publisher, year, edition, pages
2014. , 68 p.
Keyword [en]
financial distress, bankruptcy, Altman, ratios, cash flows, discriminant analysis, Sweden, retail, service, prediction.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:umu:diva-91583OAI: oai:DiVA.org:umu-91583DiVA: diva2:737110
Educational program
Master's Programme in Finance
Supervisors
Examiners
Available from: 2014-08-12 Created: 2014-08-11 Last updated: 2014-08-12Bibliographically approved

Open Access in DiVA

Quarcoo & Smedberg - The Road to Bankruptcy-A study on Predicting Financial Distress in Sweden(1713 kB)846 downloads
File information
File name FULLTEXT01.pdfFile size 1713 kBChecksum SHA-512
17bc9c88d2e5860dbb7e67734a8aba2e268237f1e6014c9bf87c7b1fcc35e8801b945cacca4341ea372a9e23a84a60bfbe344b2a878e2ee33b5d308f36abe126
Type fulltextMimetype application/pdf

By organisation
Business Administration
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 846 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 597 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf