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Journal of Economics and Sustainable Development www.iiste.

org
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'ol.%( No.1)( 21*

11
Can Altman Z-score Model Predict Business failures in Pakistan?
Evidence from Textile companies of Pakistan

+awad ,ussain
1
( I-tidar .li
2
( S/a0ir 1lla/
)
and 2adad .li
)
1.Institute of management science "es/awar-"a0istan
2.Department of management science Islamia college universit3 "es/awar-"a0istan
).Department of rural sociolog3 t/e universit3 of agriculture "es/awar-"a0istan
4orresponding aut/or5 s/a0irsoc63a/oo.com

Abstract
"rediction of ban0ruptc3 is one of t/e c/allenging tas0s for ever3 sort of organi7ations in different industries in
t/e world. .sian countries li0e c/ina India and Sri 8an0a t/is model /as been used several times. "a0istan
9e:tile industr3 ta0es large part in economic development of "a0istan. ;ut on t/e ot/er /and "a0istan 9e:tile
industr3 is facing man3 problems li0e problem of Suppl3( financial constrains( electricit3 and gas s/ortage etc.
9/is paper investigates w/et/er .ltman <-score model can predict correctl3 compan3 +ailures in "a0istan= 9/e
empirical anal3sis e:amines 21 te:tile companies !12 stable companies and > ban0rupted companies# listed in
t/e ?arac/i stoc0 e:c/ange( during t/e period 2 to 21. In t/is stud3 ban0ruptc3 predications of < score
model is investigated for four 3ears prior to ban0ruptc3. In t/is paper overall results of < score model was also
-uite accurate. 9/ese results for ban0rupted( non ban0rupted s/ows t/at .ltman model can give good predictions
for te:tile sector of "a0istan. 9/is is in line wit/ ot/er findings. 9/e empirical results are interesting since t/e3
can be used b3 compan3 management for financing decisions( b3 regulator3 aut/orities and b3 portfolio
managers in stoc0 selection.
Keywords: <-score model( compan3( business failure( ban0ruptc3

1. !"#$%&C"$!
"rediction of ban0ruptc3 is one of t/e c/allenging tas0s for ever3 sort of organi7ations in different industries in
t/e world. 2an3 users of financial statements li0e ban0s( credit rating agencies( underwriters( auditors and
regulators anal37e compan3@s financial position for t/eir interest. +or t/is purpose different approac/es are used.
During monetar3 and economic crisis selection of model for ban0ruptc3 prediction is ver3 important( +or
e:ample w/en ban0 financiall3 assists an organi7ation ban0 predict ris0 of ban0ruptc3 of t/at organi7ation prior
to financial /elp. Edward .ltman in 1>A$ developed a well-0nown model for ban0ruptc3 prediction called
.ltman < score model. 9/is model also called multiple discriminant anal3sis model !2D.#. .ltman stud3 in
1>A$ presented t/at mostl3 ban0ruptc3 occurs due to poor management( not due to economic recession( severe
competition. .ltman used AA firms in /is first stud3( /alf of w/ic/ were ban0rupted. ,e compared ban0rupted
organi7ations wit/ non ban0rupted organi7ations. ,e selected five best ratios among a large number of ratios for
ban0ruptc3 forecasting. ,is stud3 results s/owed >%B accurac3 one 3ear prior and 72B two 3ear prior to failure.
In 1>$) .ltman used model for private organi7ations s/owed >)B accurac3 rate one 3ear prior and 7)B
accurac3 two 3ears prior to failure. &ne can rel3 on bot/ versions of .ltman models of ban0ruptc3. .fter
.ltman man3 people used t/is model in various countries of t/e world !.ltman( 1>A$#. In most of t/e countries
in t/e world li0e c/ina India and Sri 8an0a t/is model /as been used several times as s/own in literature review.
In "a0istan t/is model /as not been e:tensivel3 used. 9/is researc/ is an attempt to investigate
financial failure of companies in "a0istan. In t/is stud3 companies /ave been selected from 9e:tile sector listed
in ?SE. Stud3 is based on available data. 9/e main obCective of t/is stud3 is to find t/at up to w/at e:tant
.ltman 2odel predicts compan3@s failure in 9e:tile sector of "a0istan. 2odel is applied on two t3pes of
organi7ations. 15 +inanciall3 stable companies. 25 ;an0rupted companies.
Desults of t/e stud3 s/ows for ban0rupted( stable companies individuall3 as well as combined.
4onclusions and recommendations will be provided on t/e bases of results of t/e stud3.
1.1. 'y(ot)esis
9/is stud3 is commenced on prediction of business failures in "a0istan. +or t/is purpose two
/3pot/eses /ave been generated.
'
*
: .ltman < score model cannot predict business ban0ruptc3 in "a0istan.
'
1
5 .ltman < score model can predict business ban0ruptc3 in "a0istan.
"a0istan 9e:tile industr3 is used as an evidence for t/is stud3. In 1>*7 t/ere were onl3 ) cotton mills in
"a0istan. ;ut toda3 "a0istan te:tile industr3 is in position t/at we are e:porting clot/ to ot/er countries. 9e:tile
ta0es large part in economic development of "a0istan. It gives )$B Cobs opportunities of total industr3. It
contributes $.%B to total ED". 9/ere is )1B of total investment in te:tile industr3. 7B of total mar0et
capitali7ation is from te:tile. It provides Ds. * billion annual mar0et capitali7ation. +inancial institutions earn *
billion interests per annum fro te:tile industr3. "resentl3 in "a0istan )*% spinning units( %) composite units( **
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weaving units are registered wit/ ."92.. 9e:tile industr3 is facing man3 problems li0e Suppl3 of raw cotton is
not fulfilling t/e re-uirement level. 9e:tile industr3 is facing financial constrains. 8i0e ot/er industries te:tile
industr3 is also facing problem of electricit3 and gas s/ortage. Due to t/ese and man3 ot/er problems t/e
industr3 performance for previous 1 3ears is not li0e it s/ould /ave. In t/is era te:tile industr3 is struggling for
survival onl3.
MA"+#A, A!% M+"'$%
9/e present stud3 is an attempt to e:plore Fcan .ltman <-score model predict business failures in
"a0istan= Evidence from te:tile companies of "a0istanG .pplications of .ltman 2odel in prediction of
compan3@s failure in 9e:tile sector of "a0istan. 9/is c/apter illustrated t/e met/odological wa3s t/at will be
used in concluding t/e stud3. It is mostl3 comprised of t/e following sub steps wit/in t/e domain of maCor steps
0nown as researc/ design.
%ata sources and %escri(tion
9/is stud3 is based on secondar3 data t/at /ave been collected from different publis/ed resources. 9/e
financial data /ave been ta0en from ?SE( Securit3 E:c/ange commission of "a0istan !SE4"# and sample listed
compan3@s websites. 9/e financial data used is annual t/at covers t/e period of !2 to 21#. 9/e data was
anal37ed -uantitativel3. 2icrosoft e:cel was used as a tool for anal3sis.
-co(e of study
Scope of t/e stud3 is limited onl3 to predict ban0ruptc3 of sampled te:tile companies listed in ?arac/i
Sto0e E:c/ange "a0istan. 9/ere are various wa3s to predict ban0ruptc3 of companies but in t/is researc/
.ltman < score model !1>A$# is selected for predictions.
-am(le -i.e
2an3 companies in different sectors are listed in ?SE but t/is stud3 is based on available data onl3. +or
anal3sis 21 companies from te:tile sector /ave been purposivel3 selected as sample. +rom w/ic/ 12 companies
are none ban0rupted and > are ban0rupted organi7ations. 8ists of sampled companies are given in t/e anne:ure
at t/e end of stud3.
Model e/(lanation
9o find t/e financial failure of listed companies a prominent model developed b3 .ltman in !< score
model# is used. 2odel contains % ratios given below.
Z H 1.2X1 I 1.*X2 I ).)X3 I .AX4 I .>>>X5
J/ere5
X
1
= Jor0ing capitalK9otal assets(
X2= Detained earningsK9otal assets(
X 3=E;I9K9otal assets(
X4= 2ar0et value of e-uit3K;oo0 value of total debt(
X5= SalesK9otal assets( and
< H cumulative 'alues.
.ccording to t/is model5
If value of < scores e:ceeds 2.>> t/e firms are to be considered in t/e safe 7one( and t/ere is low ris0 to
default. .nd firms /aving < scores between1.$1 and 2.>> are deemed to be in t/e intermediate or gra3 7one and
/aving /ig/ ris0 of default. J/ile +irms wit/ < scores value below 1.$1 signifies as filled firms or firms in
distressed 7one.
In t/is model variables L
1
( L2( L)( L* and L% can be described as5
L1 H L1 can be calculated b3 subtracting current liabilities from current assets. It is t/e relations/ip between
li-uid assets and total assets of balance s/eet.
L2 H for calculation of L2 we divide retained earnings or losses on total assets. Detain earnings are t/e compan3
earnings or losses t/roug/out its e:istence time period.
L)H L) indicates operating profit before interests and ta:es !E;I9# to total assets. E;I9 is t/e real profit of t/e
organi7ation.
L*H It t/e result of 2ar0et value of e-uit3 to boo0 values of liabilities. 2ar0et value of e-uit3 comes from
multiplication of outstanding s/ares b3 mar0et price of s/are.
L%H It s/ows t/e degree of total assets used for documented sales i.e. sales divide b3 total assets.
Analysis and #esults
+or anal3sis related data is e:tracted from financial statements and ratios of model li0e L1( L2 M.. L%
and < scores are calculated t/roug/ 2S E:cel. +or selected companies ratios are calculated for four 3ears.
4alculations and results will be e:amined for ban0rupted companies( stable companies and at last combine
results for bot/. 9/e model validit3 is based on t/e percentage results of t/e cases. 9/e percentage results for
ban0rupted companies must come below 1.$1 w/ile for stable companies it s/ould above 1.$1. Desults come
opposite to t/e given range will be considered as 93pe 2 error.
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'ol.%( No.1)( 21*

112
"able 0.1 Calculations for bankru(ted $r1ani.ation
4ompan3
S3mbols
Nears L1

L2 L) L* L% <- Scores
S98 -1 -1.*%A*A -1.11) - .)*2* .)>%271 $.A222A2 %.)%*2%7>$
-2 -1.12727 -.)A2** .1AA) .1>>)) %.1A722A *.7*>21$2
-) -.12A> -.%$$2 .7727 .22)2A) ).A$7)*$ ).72A7)*
-* -.17$71 .A%%A7 -.>%7> .217%71 1.)**>*1 1.2)%%7A*7
?428 -1 .2%>> .1*)A -.12A2* .1%1$A* .)$7$*$ .7$>11$
-2 .>)1$ .2**%7 .1)>*A .*AA1>$ .A%72>>2
-) .1)> .)2*2%* .A>) .22)7A .)$7$)> .>$)**7$)
-* .17$22 .)** .2)>$>2 .%1)7%% .AA%>2**
S9I8 -1 .22%)> .27)17 .>21* 1.)>>>2 2.>$$212 *.*7712%$
-2 .*A*7 .))>1> .7**2A 1.**1$*7 *.)>*A) %.$%7277$
-) .7A)) .2AA1%A .1%$%) 1.1>*) %.*>)A1 A.$$A1$1A
-* .$1$ .1>%A2 .$1>1$ .*A7A)7 ).*$1)27 *.27227*>7
S928 -1 .271> .*$** .AA72* .27%A% 1.>2%* 1.*71A$7*>
-2 -.*1$> .1$>7> .$77) .))AA7 1.AAAA) 1.%%1A%)>
-) -.2%2$ .)2)$ .1*A71 .7A)72 1.%$%71 2.)*))11))
-* .)77% .))>% .1)$7 1.*27*7 1.%11$) 2.A>%>2)7
.928 -1 -.%)* .>7%1 -.%7*$ .%$%>* .2%>%2 .)7%%7%*$
-2 .1A17* -.)%%$ 1.2*%2A1 2.27*17> 2.$$)127)
-) .1$)A .12)> .1))1) 1.1)A77 .>%1A11 1.A$*172$%
-* .1>777 .17> 1.%$A7*1 1.A%* 2.72%)7>
D928 -1 .1>%2> .1>$ -.17%2 .$227>2 .*)7*1 .%%A27$2>
-2 .$A2* .17>)$ .A%117 .*7%2$7 1.2**)>%%
-) .1)71 .1)7%1 .%>% 1.17$%$7 .)7)% .77)>*1*2
-* .1%%22 .)$*2 1.1)1%12 .*2A21A 1.1*17$*A*
I99I9 -1 -.)>A> -2.A%7)1% -2.17$)% 7.2A)$77* -1.%%*7>A%
-2 -.)*7) -.>27>)> -.1*)7> 1.)%2%711 -.%7AA$*>1
-) -.1*) -.A7A%A* -.>>)* 1.)1A2%2 -.217*>$%
-* -.$2* -.%>2>> -.A1A* 1.>7)>A*1 .)2%2%A%A
.928 -1 -.$AA -1.2$%>$* -.2%*%*) .2**A2* -).*A1%12*
-2 -.A%%% -.$%*)> -.*AA$2 .2)$>%2> -1.>2*)*1>
-) -.%2*A -.A1A12 -.1$>A% .)12121$ -1.)*$21
-* -.))*7 -.)%**$ .%771)7 .*1>A7$ .2$*$11
D.9.9 -1 -.%27) -.1117A -.1>7%11 .A)*2% 1.*))> .>1A>>)
-2 -.AA)71 -1.)>1$2 -.A>%% .**22>A7 2.2*>*$> -.A$A221
-) -.*7)>2 -.7%)12> -.A>7$ .)7%)>) 1.A%112*% .%*A21
-* .7171 -.%$21$A .))7>2* .AA7A%> 1.>>)1%7 2.777$$A>2

"able 0.2 Z. -core results for Bankru(ted com(anies
Near .ll 4orrect 4lassification 93pe 2 Error B age Desults
-1

-2

-)

-*
>

>

>

>
7

A

A

%
2

)

)

*
7$B

A7B

A7B

%AB

2ean

A7B
9/e model is being applied on given ban0rupted companies for four 3ears prior to ban0ruptc3. 9able-2
s/ows t/at model give 7$B correct results 1 3ear prior to ban0ruptc3 A7B consecutivel3 for 2 and ) 3ears prior
to failure. * 3ears prior accurac3 rate is %AB. So < score can provide good indication of problems due to w/ic/
insolvenc3 occurs. ;3 using t/is model companies can reveal financial problems. .bove %B accurac3 rate for
all and A7B average rate of accurac3 illustrate t/at compan3 can e:/ibit at least /alf of financial problems
t/roug/ < score model w/ic/ t/e compan3 will face in near future.
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-17 !"aper# ISSN 2222-2$%% !&nline#
'ol.%( No.1)( 21*

11)
"able 0.3 Calculations for -table $r1ani.ations

4ompan3
S3mbols
Nears L1 L2 L) L* L% <- Scores
4D92 -1 -.1272>12 .172272 .))71)*2 .A>)77* .%>71*2*%) 2.$%$*>7
-2 -.1%>2%> .1A)A2) .1*1A211 .71177) .*2*7>%)1 2.17)21
-) -.1A*%1)1) .1>$*17 .>%%%%> .7)71) .A$2$%11A7 1.>A1)>*A
-* -.1A*)A$ .1A171 .12>A%A2 .%$1*A .$>7$7A2$2 1.A7)>21%
N28 -1 -.1272>11> .%>2)1 .*A2*$% 1.$22 .7>)%*$%7) 2.)1$$*1*
-2 -.1%>2%> .%%12> .$22$2 2.22)) .>>)>%1))1 ).1$1>1>7
-) -.1A*%1)12 .1%)%> .$2$)A2 .2)7*71 .>$$%>A2$) 2.A*$$2
-* -.1A*)A7$ .%$>)A2 .%2211 .1$$72 .1A>$**>>$ 1.>1A*21**
;J2 -1 .212%*>A .1>2%72 .A$*72* .$%>$%A .*A%1%A>2* 2.12*%2)))
-2 .1A>*>A77 .171)* .%A*$$% .*%>A17 .*$7>)21) 1.$)71**>
-) .21%77)* .1%2)A .%%7A77 .*A$>1% .*%*2)711 1.777>)*%
-* .2)2A>A2 .21*>71 .A>>%7$ .*A%71) .*)%7A2* 1.$A)227A2
?&,92 -1 .)>7>2$A%2 .%>17*) .%)*1>$7 .*)*)*> .7*>1A>$7$ *.2*$)%$A)
-2 .)71)*%>*% .AA*2A .%*)>$72 .*17>A .7*2A7>)) *.)A2A1%
-) .*)7)$%7> .7*27A* .)2>%% .)%>$%2 .%%7)A>$% ).%21%7))1
-* .))7$A%$A2 .7AA72 .)$>A2%$ .*22*A .A)*1A%7 ).$72%%7
?928 -1 -.%21%$2>> .1A771$ .7*>A2) .%*7A> .%%>2*>$A 1.712*)177
-2 -.>7%)2% .12A>* .A12A% .**)A2 .71%%%A>% 1.%>)A1$1
-) -.*7*)2*A> -.A$7% -.*1$1$ .1*1$2 .71*>%*)$A 1.22>%$2
-* -.A$%71*% -.)%17 -.12*) .172%> .>)A22% .$71*121
..92 -1 2.122>A*>1 2.*$*A1*2 .A7*1*1%$ 2.)%)>>A7 2.%$*72*2%2 1.$A>7%>*
-2 1.1>7%22** 1.A$*>7*$ .%*)2) 2.2>)1A) 1.>>*7*>1A 7.$1A%)A71
-) 1.2A*$7*12* 1.A7%AA)2 .7%>%2$ 1.$A17A 2.%2*A*** $.)A22)>*
-* 1.)>)A))A*1 1.>%)AA7 .A)AA21) 1.$$22$* ).%)>)21% >.2A2)*%A
J.. -1 .2$7$> -.7$))1)1 .*A%)>2A .*%2*22A 2.$77$) 2.A$>)%1)
-2 -.71%*$$ -.7)%%2A .*1)2A$ .*17>7$*$ 1.%*12A*)A% 1.%2*72%)$
-) -.)7%$$ -.7$>1)72 -.$2*%*7 .*%)>1*7 1.)%>7)7$$$ .$*71*1%
-* -.*))22>2 -.%7AAA2A -.)%1*>%7 .*1>%A7 1.)*11>$72 .77%2*2
S.+. -1 -.A*>>*7 .)>7A%*) .$*)2>* .21)%1$>% 1.>%)7)AA) 2.>A7)>>%2
-2 .A>AA*A .*>A*2 .77$72711 .2$77*7 2.)>7$A% ).%1*>77*
-) .%>7*)A .*)%7%7 .%**A>A22 .)1>>$>7A 2.2)A>1)1) ).)**%%)$
-* -.$2A>77> .*1A$AA .A$2$771A .)>>%)2%% 2.*77%7%7> ).%2A>>27
+928 -1 -.*>A17%%1 .%1*>7$$ .1>)A>**21 .$*)*%> 1.7$%%$*>*A 2.%$*211*7
-2 -.>2>2>)% .7$$A$A$ .11A2A)1A7 .11))*1% 1.%$1$*7*A7 2.AA*7>$$A
-) -.$AA*A .2>%)$) .7)>$7%* .2$7>A1> 1.2))$7$A) 2.71%22%
-* .*%)$27A .1>7A>*$A .2$>A**>1 .2)717>A .7)%1%A*) 1.A>$$%%7
E.92 -1 -.1%)*$21 .%%2>%7 .11)2>>) .7*>%17 1.)*$%7A7A 2.)>2>772$
-2 -.2$7)A2> .%>*$A .$$>>2%*1 .AA%*>> 1.2)7%$A)7 1.>A7)72A>
-) -.%%A>)$% .$))>)2 .7%$7%7)> .%7A$$A .>%$7**$ 1.$2122A2
-* -.277>))% .>**A)2 .7**71$$ .7%>*2> .>$)7>AA21 1.$*%2
<98 -1 -.2A*))2% -.A1*2 .1)$7A7A2 .2)*A727* 1.11$%A)1*% 1.$)>%7$A7
-2 -.2)$A>*2 -.>11%A% .AA*711A .2172*%$$ .$2)%$A) 1.)7>>$%7>
-) -.1>27%>A -.7>21)7 .%>)71$1 .221A>*7 .7$17)$7A1 1.*1A%2A$
-* -.1$1A)A% -.7*))A1 .*%*227A1 .21A2%$)2 .7)>%*72 1.)*1*A7>
+9,2 -1 .11A**%>*A .1%17A*$* .%>1$27A .2))$A .2*2)$*1>A 1.*)$**)$>
-2 .1*%>A$$) .1%$*>**> .%22A*A7 .222)*7 .)171A*1)) 1.7*21A)$
-) .17>2%A21 .1A7>)%17 .%2$72*) .2A7>7$ .%)277)* 1.)7$%$2*A
-* .2127%*>$ .1$$>>>* .A%*)A$> .)A)1$ .7>*)1) 1.7>27*)
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'ol.%( No.1)( 21*

11*
"able 0.0 Z. -core results for !on Bankru(ted com(anies
Near .ll 4orrect 4lassification 93pe Error B age Desults
-1

-2

-)

-*
12

12

12

12
1

$

7

%
2

*

%

7
$)B

A7B

%$B

*2B

2ean

A)B
9able * s/ows t/at model predictions for stable companies is -uite satisfactor3. It classifies $)B( A7B(
%$B( *2B companies correctl3 for 1( 2( )( * 3ears time period respectivel3. .verage accurac3 rate for * 3ears is
A)B. So t/e stud3 s/owed t/at < score model performs better for stabilit3 prediction of stable companies.

"able 0.4 Z. -core Predictions for all com(anies 5Bankru(ted and !on Bankru(ted6
Near .ll 4orrect 4lassification 93pe Error B age Desults
-1

-2

-)

-*
21

21

21

21
17

1*

1)

1
*

7

$

11
$1B

A7B

A2B

*$B

2ean

A%B
In t/e above 9able it is elaborated t/at .ltman < score can identif3 failed and stable companies b3 $1B
to *$B from 1-* 3ears. .s t/e time /ori7on increases accurac3 rate of t/e < score model decreases. 9/e mean of
accurac3 s/ows t/at model is -uite successful for bot/ ban0rupted and non ban0rupted companies. It is also to
be noted t/at for s/ort time period t/e model give good indications w/ile wit/ t/e increase in time span accurac3
rate reduces 3ear b3 3ear.
In t/e lig/t of above results( t/e accurac3 rate of t/e model was /ig/. So ,o is reCected and ,
1
is
accepted
.
J/ic/ means t/at .ltman < score model can predict business ban0ruptc3 in "a0istan.
Conclusion and #ecommendations
9/e prediction of business failure is ver3 useful for financial managers( investors and ot/er users of
financial statements. In t/is stud3 it is tried to 0now w/et/er < score model is able to predict business failure in
"a0istan. .nal3sis of t/is paper s/ows t/at t/e model can predict business ban0ruptc3 one( two( t/ree( even four
3ears prior to failure wit/ a /ig/er rate of accurac3. 2odel is also useful to 0now t/e financial soundness of
organi7ations. In t/is paper overall results of < score model was also -uite accurate. 9/ese results for ban0rupted(
non ban0rupted s/ows t/at .ltman model can give good predictions for te:tile sector of "a0istan. ,ence it can
be concluded t/at user of financial statements li0e financial managers( anal3sts( investors etc can predict
business failure or financial soundness of companies t/roug/ .ltman < Score model in "a0istan.
#ecommendations for 7uture researc):
In t/is paper model is used for 9e:tile companies in "a0istan onl3( one can use t/is model for ban0ruptc3
prediction in ot/er sectors as well.
"ortfolio managers and compan3 management w/ile using t/is model can predict upcoming future problems for
organi7ation.
Investors can evaluate ban0ruptc3 ris0 of organi7ations t/roug/ t/is model in "a0istan.
9/is is in t/eir best interest t/at < score model performs better for stabilit3 prediction of stable companies( so a
firm s/ould evaluate its < score on regular basis.

#eferences
.ltman( E. I. !1>A$#. +inancial Datios( Discriminant .nal3sis and t/e "rediction of 4orporate ;an0ruptc3.
Journal of +inance( 2)( %$>-A>.
;alasundaram( N. !2>#. .n Investigation of +inancial Soundness of 8isted. 1>-2%.
4/ung et al,. !2$#. Insolvenc3 prediction model using multivariate discriminant anal3sis and artificial
neural networ0 for t/e finance industr3 in New <ealand. International Journal of ;usiness and
2anagement( )!1#( 1>-2>.
Dia0omi/alis( 2. !211#. Insolvenc3 prediction5 Evidance from Ereeel /otels. )7$-)$7.
Journal of Economics and Sustainable Development www.iiste.org
ISSN 2222-17 !"aper# ISSN 2222-2$%% !&nline#
'ol.%( No.1)( 21*

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Islam(N.2 and S/amem( .. 2. !212#. +inancial Diagnosis of Selected 8isted "/armaceutical. European
Journal of ;usiness and 2anagement ( 7-$$.
?annad/asan( 2. !1>A$#. 2easuring financial /ealt/ of a public llimited compan3 using < score model . case
stud3. 1-17.
?/alid. .. and ./amd. E. ;. !2arc/ 211#. "redicting 4orporate ;an0ruptc3 of Jordanian 8isted.
International Journal of ;usiness and 2anagement ( 2$-21%.
Ni0olaos. E. and .postolos. ?. !2>#. 4an .ltman < score models predict business failure in Ereece.
Desearc/ Journal of InternatOonal StudOes ( 21-2$.
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Da3( S. !211#. .ssessing 4orporate +inancial Distress in .utomobile Industr3. Desearc/ Journal of
+inance and .ccounting ( 1%%-1A$.
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&rgani7ation Science( 1*!%# ( pp. *>7-%>.
<ul0arnain et al,. !21#. +orecasting corporate failure in 2ala3sian industrial sector firms. .sian .cadem3
of 2anagement Journal( A!1#( 1%-).

Anne/ure
,ist 1: Bankru(ted Com(anies ,ist:
S. No 4ompan3 Name S3mbol
1 Sc/on 9e:tiles 8imited S98
2 ?arim 4otton 2ills 8imited ?428
) Sadoon 9e:tile Industries 8imited S9I8
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$ .ma7ai 9e:tiles 2ills 8imited .928
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S. No 4ompan3 Name S3mbol
1 4rescent 9e:tile 2ills 89D 4D92
2 Nis/at 2ills 8imited N28
) ;annu woolen 2ills 89D ;J2
* ?o/at 9e:tile 2ills 8imited ?&,92
% ?o/inoor 9e:tile 2ills 89D ?928
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7 J.. 9e:tile 2ills 8imited J.928
$ Safa 9e:tile 8imited S.+.
> +a7al 9e:tile 2ills +<92
1 Eul ./mad 9e:tile 2ills E.92
11 <ep/3r 9e:tile 8imited <98
12 +ate/ 9e:tile +9,2

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