The Relationship Between Financial Capabilities on bankruptcy risk companies Listed in Tehran Stock Exchange
Subject Areas : HSE ManagementAsgar Pakmaram 1 , Diba Raeisi 2
1 - Assistant Professor, Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran
2 - M.A,, Department of Management, Payame Noor University, Tabriz, Iran (Correspondent)
Keywords: Financial capabilities, criteria of profitability, bankruptcy risk,
Abstract :
The aim of this study is to assess the ability of the financial capabilities relationship on bankruptcy risk of companies listed in the Tehran Stock Exchange. In this study, to assess the financial capabilities, the rate of return on assets, return on equity and the company's liquidity standards used .The study also used Zmijewski bankruptcy risk measuring model. In terms of purpose is applicative and in terms of Methodology is correlation from causal after occurrence. Study population are Listed companies in Tehran stock exchange, which using removes systematic sampling, 181companies during 8 years (total1448year-CO) were located in the samples of this study. The period of research included 2006 to 2013. To test formulated hypotheses binary legit regression used. The results show return on assets, return on equity and current ratio and statistically significant negative relation on the risk of bankruptcy. The results also show that the company's size and financial leverage was positive and significant relation on the risk of bankruptcy.
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