[雙語翻譯]信用風(fēng)險(xiǎn)外文翻譯--馬來西亞信用風(fēng)險(xiǎn)的決定因素（英文）

1、 Procedia - Social and Behavioral Sciences 172 ( 2015 ) 301 – 308 Available online at www.sciencedirect.com ScienceDirect1877-0428 © 2015 The Authors. Published by Elsevier Ltd. This is an open access article

2、 under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of GLTR International Sdn. Berhad. doi: 10.1016/j.sbspro.2015.01.368 The Determinants of Credit Risk

3、in Malaysia Norlida Abdul Manaba*, Ng Yen Thengb, Rohani Md-Rusc a,b,cUniversiti Utara Malaysia,Sintok, Kedah Darul Aman, 06010, Malaysia Abstract The aims of this study are to investigate the determinants of credit risk

4、 and to examine the impact of earnings management on credit risk prediction. The results showed that the liquidity ratio was significant in determining credit risk before and after earnings management was adjusted. Mea

5、nwhile, the productivity ratio was significant in the unadjusted model, while the profitability ratio was significant in the adjusted model. The overall percentage of correct prediction showed that the unadjusted model

6、predicted better than the adjusted model. This study provides knowledge about the effect of earning management on bankruptcy prediction. © 2015 The Authors. Published by Elsevier Ltd. Peer-review under responsib

7、ility of GLTR International Sdn. Berhad. Keywords: Credit risk; earnings management; bankruptcy prediction; Malaysia 1. Introduction Credit risk refers to the risk of an economic loss from the failure of counterparty to

8、 meet its contractual obligations (Jorion, 2009) and nowadays, it is becoming very pervasive. Basel Committee (2001) has identified credit risk as the dominant risk for banking sector. Credit risk is associated with t

9、he core business of banks, which involve loan lending and deposit activities. Palubinskas and Stough (1999) found that bad loans, lack of banking skills, lack of regulation, deposit insurance, mismanagement and corrupt

10、ion were the factors that caused bank failures. Meanwhile, Andrade and Kaplan (1998) found that the primary cause of distress was firm’s high leverage while poor firm performance and poor industry performance do not co

11、ntributed much in explaining distress. They also found that operating and net cash flow margins declined significantly after the firms fell into distress and rebound in the year before distress is resolved. In addition

12、, Andrade and Kaplan (1998) discovered that distressed firms will cause costly investment cuts and depressed asset sales. The cost of financial distress is estimated to reach as high as 10-20 percent of the total firm *

13、 Corresponding author. Tel.:06-04-9286801; fax: 06-04-9286752. E-mail address: norlida@uum.edu.my © 2015 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http:/

14、/creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of GLTR International Sdn. Berhad.303Norlida Abdul Manab et al. / Procedia - Social and Behavioral Sciences 172 ( 2015 ) 301 – 308 in

15、 derivatives market, borrowing or lending securities and making margin loans to customers. Thus, credit risk depends on the ability of borrowers to generate sufficient cash flows through operation, earnings, or asset sa

16、les to meet their future interest and principle payment of the outstanding debt. Asquith, Gertner and Scharfstein (1994), showed that companies response to distress by doing bank debt restructurings, public debt restr

17、ucturings and asset sales. On average, financial distressed firms would need to sell 12 percent of their assets in order to implement their restructuring plans such as payoff senior private debt. Honohan (1998) stresse

18、d that when a bank failed or distressed, losses will be incurred by depositors, government, other creditors of banks and banks’ shareholders. Moreover, the distressed condition may leads to a contagious panic which may

19、 cause bank runs and causing a domino effect in the banking industry. Beside, deposit freezing due to bank failure may cost the banks more as they need to pay the depositors with interest. It is obvious that market par

20、ticipants would need to pay a huge compensation for their mishandling of credit risk. Thus, it is crucial that a more sophisticated model be developed to measure and control for credit risk. Default prediction model ha

21、s become one of the oldest and major tools that have been used to predict the probability of default. Empirical studies on default prediction are dated back to 1960s, pioneered by Beaver and Altman (Hol, Westgaard Ba

22、rros, Ferreira & Williams, 2007), neutral network (Tam and King, 2001) and option-pricing model (Charitou et al., 2013). Altman and Saunders (1998) suggested that there were significant improvements in credit risk

23、measurement literature over the last 20 years. Based on past researches, Table 1 summarized the key financial indicators that have shown significant relationship with financial failure or bankruptcy, which includes pro

24、fitability ratio, leverage ratio, productivity ratio and liquidity ratio. Table 1. List of financial ratios used in previous study. Author(s) Year Significance of financial ratio(s) in determine financial distress or

25、 bankruptcy. Altman 1968 Profitability, productivity, liquidity, leverage and activity ratios. Keasey and McGuinness 1990 Profitability and efficiency ratios. Fons and Viswanathan 2004 Interest coverage and leverag

26、e ratios. Thai and Abdollahi 2011 Liquidity, profitability, leverage and cash flow ratios. Tykvová and Borell 2012 Liquidity, profitability and solvency ratios. Yap, Munuswamy and Zulkifflee Mohamed 2012 Cash

27、flow to total debts ratio and total debts to total assets (liquidity ratio), retained earnings to total assets (profitability ratio) and cash to current liabilities (solvency ratio). Korol 2013 Earnings before interes

28、t and tax to total assets (profitability ratio), net profit to total asset (activity ratio), total liabilities to total assets (debt ratio), working capital to total assets (liquidity ratio) and total revenues from sal

29、es to total assets (activity ratio). Financial reporting plays a crucial role in providing information that is useful to present and potential investors and creditors to help them to make decision on investments, credi

30、ts and trading activities (Spiceland, Sepe & Tomassini, 2007). There are many accounting professions that prepare guidelines or known as accounting standard to assure the quality of accounting report. For example,

31、the Malaysian Accounting Standard Board (MASB) was established to develop and issue accounting and reporting standards within the country in order to promote high quality accounting and reporting standards that is cons