Applying the fuzzy approach to identify and categorize variables predicting financial distress in Iran's capital market

Subject Areas : Journal of Capital Market Analysis

Ardalan Hamidi ¹ (Department of Accounting and Management, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran)
Samad Ayazi ² (Department of Accounting and Management, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran)
Arash Naderian ³ (Department of Accounting and Management, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran)
Hossein Abbasian ⁴ (Department of Mathematics, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran.)

Received: 2024-02-04 Accepted : 2024-05-30 Published : 2024-08-08

Keywords: Financial Distress, prediction, Fuzzy Delphi, Meta synthesis,

Abstract :

The importance of predicting financial helplessness has always been increasing for the ownership of companies, global economies are also aware of the risks caused by the obligations and debts of companies, especially after the collapse of large organizations such as WorldCom and Enron. have become sensitive On the other hand, the unfavorable financial situation of companies also causes losses for different sections of the society, especially investors, including shareholders and creditors, who are not only investors, but also senior managers, accountants, and auditors are interested in the financial status of companies scientifically. to predict Therefore, in the present research, the identification and ranking of the predicting variables of financial helplessness of the companies admitted to the Tehran Stock Exchange was done using the fuzzy approach. The statistical population of this research is academic experts and capital market activists. The results of the research showed that the most important variables predicting the financial distress of companies listed in the Tehran Stock Exchange are: current ratio; instantaneous ratio; debt ratio; cash to assets; working capital to total assets; net sales to total assets; P/E ratio; cash to current liabilities; cash to total assets; current assets to total assets; market value of shares to book value of shares; net profit to total assets; operating profit to total assets; net profit to equity; net profit to net sales; company value; the life of the company; size of the company.