This paper investigates the link between the optimal level of non–financial firms’ liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for cash that shows that firms are likely to change their liquidity ratio in response to changes in uncertainty. We test this proposition using a panel of non–financial US firms drawn from COMPUSTAT quarterly database co...

This paper investigates the effects of macroeconomic volatility on non–financial firms’ cash holding behavior. Using an augmented cash buffer–stock model, we demonstrate that an increase in macroeconomic volatility will cause the cross–sectional distribution of firms’ cash–to–asset ratios to narrow. We test this prediction on a panel of non–financial firms drawn from the annual COMPUSTAT databa...

Financial distress merupakan sebuah kondisi kesulitan keuangan dalam perusahaan yang dapat menjadi indikasi mengalami kebangkrutan. Penelitian ini dilakukan untuk menganalisis bagaimana pengaruh Good Corporate Governance dan Ratios terhadap terjadinya Distress pada sektor perbankan terdaftar di Bursa Efek Indonesia (BEI) periode 2019-2021. menggunakan purposive sampling menentukan sampelnya. Di...

The paper focuses on the estimation of customer default amoung the small and medium enterprises (SME). Based on the literature on credit scoring modelswebuild a logistic regression model which is widely used by commercial banks. Our models predicting customers’ default on their payables to suppliers are estimated on a sample of a customer portfolio of 905 SME clients. Based on the analysis the ...

For partitioning the dataset of financial ratios into abnormal and normal groups, this paper proposes a hybrid clustering technique by combining similarity matching (SM) algorithm with self-organizing maps (SOM), called SM-SOM technique. The hybrid system provides three stages: preprocessing stage, similarity matching with cosine algorithm and SOM cluster. For evaluating the performance of this...

In this study it has been initiated to find out the credit strength and financial performance of cement industries in Bangladesh through investigating the financial report for the period from 2007 to 2011. Financial ratios are employed to measure the Liquidity (Working capital to Total Assets), Profitability (Retained Earnings to Total Assets), Efficiency (Earnings before Interest and Taxes to ...