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Business Review

Abstract

Financial distress and its determinants are very important for investors as well as financial institutions; no one can deny its significance. This paper assesses the determinants of financial distress of non financial companies of Karachi Stock exchange from 2003 to 2010. Financial distress in companies was calculated from Z score model. Determinants like current ratio, profitability, efficiency, solvency and leverage were identified. Result shows current ratio, profitability, solvency and leverage are negatively correlated while efficiency is positively correlated.

Keywords

Financial distress, Z score, Current ratio, Profitability, Efficiency, Solvability, Leverage

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Published Online

March 02, 2021

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