上市企业偿债能力外文翻译文献编辑Word文档下载推荐.docx

1、Firms Size and Solvency Performance: Evidence from the Malaysian Public Listed Firms（公司规模和偿债能力：来自马来西亚上市公司的证据）文献作者：AK Ramin 等文献出处：Journal of Engineering and Applied Sciences,2017, 12（5）: 1240-1244 字数统计：英文 3045 单词，15732 字符；中文 4929 汉字外文文献FirmsSize and Solvency Performance: Evidence from the Malaysian P

2、ublic Listed FirmsAbstractFirm solvency is one of the important indicators in measuring firmsperformance. Firm ability to grow and sustaining their business in the highly competitive business environment depends significantly on its cash flow management capacity that subsequently results to a busine

3、ss stay solvent at every phase of business life cycle. Early detection of financial distress is important for every firm of various sizes. Previous findings on firms size and solvency performance varies which tendency on agreeing to the assumption that larger firms have the advantages to avoid insol

4、vency as compare to smaller firms. However, previous studies have also revealed that larger firms such as public listed company were not escape from facing financial distress which eventually lead to insolvency. Therefore, the study was aimed to mdentify the influence of firms size and solvency perf

5、ormance of public listed firms in Malaysia. A total of 149 firms were used to measure their financial data performance for a period between 2011 and 2014. Firm total assets and paid capital were used as a proxy to firm size. The current ratio and debt ratio were used as a proxy to measure the solven

6、cy performance. The study found that firm size measuredby total assets has moderately influence the solvency performance of firms indicated by the debt ratio and current ratio. However the firm size measured by paid-up capital has lesser influence on solvency performance measured by debt ratio and n

7、o influence on current ratio.Kev words:Current ratio, debt ratio, firm size. Insolvency, liquidity, SolvencyINTRODUCTIONIn any situation, firms should be able to meet short and long term obligation to achieveoperationalsustainability. Inthissituation,firmswithoperational sustainability were regarded

8、 as in the position of solvency. Insolvency occurs when a firms total liabilities exceeded a fair valuationof its total assets. Previous study by Brigham and Houston （2012） described technical insolvency as the position whereby firms were unable to meet their current obligations as they fall due （th

9、at is the firms current assets are lower than its current liabilities） despite having higher total assets than the total liabilities. Early detection of financial distress is important in avoiding insolvency. Public listed firms were relatively capable in managing liquidity to ensure that they remai

10、n in solvency position sustainably. Previous findings on the relationship between firms size and solvency performance shows mixed result which tendency on agreeing to the assumption that large firms have the advantages over small firm to remain solvent. However, prior studies have also revealed that

11、 larger firms such as public listed companies were not immune from having financial distress which eventually leads to insolvency. Firm ability in servicing and repaying debts was the main indicator of the solvency position measurement of any firms （Zhang and Zhang, 2010）. Earlier empirical studies

12、by Coleman （2002）, Obert and Olawale （2010） that focus on larger firm in various developed countries suggest that large firms showed that size have significant impact on the ability in serving debts lead to greater chances in sustaining their solvency position. This finding consistent with a study b

13、y Sahudin et al. （2011 ） in which larger firms allows a greater level of debt management towards their ability to sustain the solvency position. Despite many findings revealed that larger firms have an advantages over the smaller firms in managing their liquidity,there were cases particularly in whi

14、ch Practice Note （PN 17） was served to considerably large firms listed in Bursa Malaysia as a result of liquidity issues. PN 17 is the control procedure specifically for public listed companies which are facing financial distress and to be delisted from the stock exchange. There were 21 firms subjec

15、ted to PN 17 as at first half of 2015 bringing the total listing of financial distress firms to 2.32% of the total listed firms on the stock exchange. Shareholders and investors continue to demand for healthy firms to ensure their investments. Solvency and liquidity of firms would remains significan

16、t elements for managers to manage for sustainability of the firms. It is pertinent for managers to understand about business failures, its causes and its possible remedies （Sulub, 2014）. Therefore, the study was aimed to mdentify the influence of firms size on solvency performance of public listed firms on the Bursa Malaysia （BM）.LITERIATURE REVIEWPast researchLun and Quaddus （2011 ） in their study among Hong Kong