Financial Distress Analysis on Asia Pacific Telecommunication Companies using Financial Ratios and Macroeconomic Variables 2014-2017
Rama Ardy Syahputra
Telkom University
Bandung
Abstract
This study attempts to predict financial distress companies in the telecommunication sector in Asia Pacific in the period of 2014-2017. We are using financial distress companies as the dependent variable and financial ratios and macroeconomic variables as the independent variables. The purpose of this research is to identify predictors of corporate financial distress, using logit model analysis, in an emerging market over a period of economic turbulence and to reveal the comparative predictive and classification accuracies of the models in this different market. The research relies on a sample of 14 telecommunication companies from 14 countries, which cover a period of stagnant economic growth during 2014-2017. This study found that the independent variables that can be used to predict financial distress companies in telecommunication sector in Asia Pacific were financial risk, operating risk, liquidity, profitability and Gross Domestic Product.
Keywords: Financial Distress, Telecommunication, Asia Pacific
Topic: Financial Management