Is negligence the tools of financial failure a role in the bankruptcy of companies?
Keywords:
Financial Failure, Kida & Sherrod Model, predict financial distressAbstract
Corporate financial analysis tools is an important determinant of corporate performance. Poor corporate financial analysis tools accessories truly ill-treat the interests of shareholders, and may lead to business collapse. This paper expands the literature the effectiveness of aspects of corporate financial analysis tools for predicting financial distress in a dynamic analysis model. The inherent aim financial analysis tools is to provide a basis for economic decision-making, and any decision requires information acquisition, processing and data analysis as well as logical and correct interpretation of information. It is a comprehensive, up-to-date and thorough study, Furthermore the paper addresses Developing models for predicting financial crisis and comparing the capabilities of existing models can help to alert management about ongoing activities about economic decision for purchase shares or granting loan facilities. The results suggest that although corporate financial analysis tools alone is not sufficient to accurately predict financial distress, it can add to the predictive power of financial ratios and macroeconomic factors; So, the purpose of this study is the predict Financial failure of One of the listed companies on the Algerian Stock Exchange using Financial analysis tools.
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