Mizan and Hossain (2014) performed a review for the prediction of financial disaster of the cement industry in Bangladesh. They applied the Altman Z-Score model because of this where test size turned into 5 main corporations of this industry. Their evaluation uncovers some worthwhile discoveries: two corporations are determined monetarily strong and not using a insolvency opportunity in destiny and remaining groups are discovered to be improper and excessive opportunity of financial distress in close to future. Chowdhury and Barua (2009) connected Z-Score model to the Z class shares of Dhaka stock change (DSE) to decide financial distress of each proportion. They took 53 companies ' information from the years 2000-2005 to investigate Z-Score.
They found that the BSM model adjusted for dividend payments provided enough statistics which outperformed other model of bankruptcy, the KMV Merton model. The paper titled “Predicting Bankruptcy of Industrial Firms in Greece” by Theoharry Grammatikos also analyzed various models used in predicting bankruptcy conditions in industrial firms in Greece. The author found that the greater Z score and the Y score leads to financially strong company and vice versa. The cut off points were placed at 0.0 for Z score and 0.5 for y score respectively in predicting bankruptcy
In the research “Interest rate risk in the Indian banking system” of Ila Patnaik and Ajay Shah (2002) studied the interest rate risk measurement of sample of major banks in Indian, they used two methods. The first method consists of estimation on the impact upon equity capital of standardized interest rate shocks to find that “approximately two-thirds of the banks in the sample stand to gain or lose over 25% of equity capital if the interest rate moves 320 basis points”. It is found that with the use of the second method to measure the elasticity of bank stock prices to interest rate fluctuations, “the stock prices of about one-third of the sample banks had significant sensitivities”. Regards to application of the repricing model and gap analysis
As a result of this statement, firms could go for an all-debt capital structure. Gapenski, (1996), conversely, contend that the Miller-Modigliani model is true only in theory, because in practice, bankruptcy costs exist and will even increase when equity is traded off for debt. In an effort to confirm Miller-Modigliani theory in Kenya, Maina and Kondongo (2013) probed the effect of debt-equity ratio performance of firms listed at the Nairobi Securities exchange. A survey of all companies listed at the Nairobi Security Exchange from year 2002-2011 was the sample. The study found that there is no connection between capital structure and all measures of performance.
This chapter will summarise key findings from secondary research. The key topics comprise of the following: • A detailed review of the key concepts and principles of whole life building costs. • Highlight the features, importance and benefits of whole life building cost analysis. • Detail best practice guidelines for whole life building cost analysis. • Outline the data requirements for whole life building cost analysis with a detailed analysis of the importance of using accurate and most up to date information.
(2004) develop fraud prediction models using financial ratios; however, their models suffer from high misclassification rates. Skousen and Wright (2008) use logistic regression to predict fraud roughly 69 percent of the time. Fraud triangle component can’t be research directly, so there are some additional test to determine whether the significant proxy variables could actually be used in the prediction of financial statement fraud (skousen, 2009). Based on skousen’s study (2009) examining the effectiveness of the fraud risk factor framework adopted in SAS No. 99 in detection of financial statement
This operation avoids the discount of the value of cash holding caused by agency problems. In reality, the cash holding payback policy decreases the possibility of interest conflict, whereas the wealth of shareholders could merely increase. The result of some researches shows that the inside managers or controlling shareholders would choose to enforce their “self control” (Myers, 1998) if the corporate does not distribute the excessing cash holding to shareholders. Thus, limiting the excessing cash holdings in corporation could decrease the agency cost and maintain the market value of excessing cash. Nevertheless, the distribution of cash holding is influenced by the legal protection for investors.
It encourages more collaborative, trust-based relationship between managers and their employees. Unlike Theory X managers, Theory Y managers are more relaxed with their employees, they believe their employees are happy to be there and to be doing the work that they are. They do not think they need to watch their every move but still give them a little direction when it comes to work. They do not believe in giving punishments in their workplace because they assume their workers are self-motivated to complete their tasks. In a Theory Y workplace, the workers have more freedom when it comes to their work, they can solve problems creatively.
According to Markowitz, when selecting the optimal portfolio an investor should focus on the two main elements portfolio return and portfolio risk, whereby risk is defined as fluctuations in returns. Each investor has different interests when choosing a portfolio, but every investor pursues the goal to achieve high returns at low risk: “It seemed obvious that investors are concerned with risk and return, and that these should be measured for the portfolio as a whole” (Markowitz, 1952). In the
Critics of his theory objected on the “do more” policy they were of the opinion that it placed an undue pressure on the worker to increase their performance and going beyond their limits. The focus on productivity which ultimately results in profitability led a few management personnel to exploit both workers and customers. As a response, more workers went into unions and secured a layout of doubt in relations between management and worker for