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Corporate Attributes and Bankruptcy Prediction: the Case of Listed Halal Food and Beverage Companies

Year: 2024

Type: article

Abstract: This study investigates the relationship between corporate attributes and the probability of bankruptcy among halal food and beverage companies in five countries: Indonesia, Malaysia, Pakistan, Saudi Arabia, and the United Arab Emirates (UAE). Analyzing data from 56 firms from 2008 to 2021 using static panel data method, we find that the working capital period (cash conversion cycle), leverage, and firm growth increase the probability of bankruptcy for these companies. In contrast, liquidity, profitability, and firm size reduce bankruptcy probability. The findings reveal essential firm attributes that can guide the management of halal food and beverage firms, relevant regulators, and potential investors in ensuring the firms’ long-term viability.

Source: Journal of Islamic Monetary Economics and Finance

DOI: 10.21098/jimf.v10i1.1928

Authors: Umar Habibu Umar, Muhamad Abduh, Mohd Hairul Azrin Besar

Institution: Universiti Brunei Darussalam

Language: English

Topic: Financial Distress and Bankruptcy Prediction

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4392288618

FWCI: 2.905

Cites:

Cited by: 6

Related to: 10