[雙語翻譯]信用風險外文翻譯--馬來西亞信用風險的決定因素

1、3800 英文單詞， 英文單詞，2.1 萬英文字符，中文 萬英文字符，中文 6400 字文獻出處 文獻出處: Manab N A , Theng N Y , Md-Rus R . The Determinants of Credit Risk in Malaysia[J]. Procedia - Social and Behavioral Sciences, 2015, 172:301-308.The Determinants of C

2、redit Risk in MalaysiaNorlida Abdul Manab, Ng Yen Theng, Rohani Md-RusAbstractThe aims of this study are to investigate the determinants of credit risk and to examine the impact of earnings management on credit risk pred

3、iction. The results showed that the liquidity ratio was significant in determining credit risk before and after earnings management was adjusted. Meanwhile, the productivity ratio was significant in the unadjusted model,

4、 while the profitability ratio was significant in the adjusted model. The overall percentage of correct prediction showed that the unadjusted model predicted better than the adjusted model. This study provides knowledge

5、about the effect of earning management on bankruptcy prediction.Keywords: Credit risk; earnings management; bankruptcy prediction; Malaysia1. IntroductionCredit risk refers to the risk of an economic loss from the failur

6、e of counterparty to 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

7、associated with the 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, mismanagem

8、ent and corruption 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 performa

9、nce do not contributed 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.

10、In addition, 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 to

11、tal firm value. A prior study done by Kaplan and Stein (1993) also found that high debt levels led to higher likelihood of bankruptcy.Opler and Titman (1994) explained that highly levered firms tend to lose substantial m

12、arket share to their healthy counterparties and experienced lower operating profits when the industry was undergoing downturn. They also discovered that stock returns of highly levered firms were lower than their less le

13、vered competitors when the industry is in distressed. Purnanandam (2008) highlighted three major costs resulted from financial distress. First, financially- distressed firm may lost its customers, suppliers and key emplo

14、yees. Second, financially-distressed firm have higher tendency to violate its debt covenants or failed to meet its obligations. Lastly, financially-distressed firm may need to surrender their positive net present values

15、(NPV) projects due to high external financing cost. From the above discussion, it was obvious that market participants would need to pay a huge compensation for mishandling the credit risk. Thus, it is imperative that a

16、more sophisticated model be developed to measure and control for credit risk.One of the mostly used and generally accepted methods in managing credit risk is the default prediction model using financial ratios. Over the

17、years, financial ratios have been applied and its accuracy has been proven to determine financial status of a firm. It has also been used to predict sufficient cash flows through operation, earnings, or asset sales to me

18、et 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 restructurings and

19、 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) stressed that when a b

20、ank 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 cause bank runs

21、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 participants would nee

22、d 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 has become one of the ol

23、dest 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 Barros, Ferreira & Will

24、iams, 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 measurement literature over

25、 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 profitability ratio, leverage ra

26、tio, productivity ratio and liquidity ratio.Table 1. List of financial ratios used in previous study.Author(s) YearSignificance of financial ratio(s) in determine financial distress or bankruptcy.Altman 1968 Profitabilit

27、y, productivity, liquidity, leverage and activity ratios.Keasey and McGuinness 1990 Profitability and efficiency ratios.Fons and Viswanathan 2004 Interest coverage and leverage ratios.Thai and Abdollahi 2011 Liquidity,

28、 profitability, leverage and cash flow ratios.Tykvová and Borell 2012 Liquidity, profitability and solvency ratios.Yap, Munuswamy and Zulkifflee Mohamed2012Cash flow to total debts ratio and total debts to total ass

29、ets (liquidity ratio),retained earnings to total assets (profitability ratio) and cash to currentliabilities (solvency ratio).Korol 2013Earnings before interest and tax to total assets (profitability ratio), net profitto