Abstract
The main objective of this study is to compare ownership structure of different levels of collapse in listed companies of Tehran Stock Exchange (TSE). Study variables are the ownership structure that includes governmental ownership, private ownership (corporate ownership and individual ownership) and the different levels of collapse including latency stage, the stage of cash deficits and commercial and financial insolvency and complete collapse. Altman model (Z´- Score) is used to predict the collapse of firm and Chi-Square test is used to test the research hypothesis. The study is the applied research and statistical population of study includes 96 collapse firms that are active in the TSE (subject to Business Law Article 141). Given the availability of financial information of distressed companies in 7 years between 2004-2010 years, a sample of 81 members was selected. The results show that the ownership structure of collapsed firms is independent from their different levels of collapse.
Highlights
Recent big collapses all over the world and its implications on macro-economy world and the pressures have put on the accountants respecting their contributions on the financial crisis require that accounting scholars to be aware of their role in social events like bankruptcy
The null and alternative hypotheses are provided as following: Null hypothesis: ownership structure of distressed firms is independent of the level of financial distress
Alternative hypothesis: ownership structure of distressed firms depends on the level of financial distress
Summary
Recent big collapses all over the world and its implications on macro-economy world and the pressures have put on the accountants respecting their contributions on the financial crisis require that accounting scholars to be aware of their role in social events like bankruptcy. If accounting is to serve as economy facilitator why it is failed predicts recent crisis. Financial decision-making is one of the most important subjects of financial management. The aim of providing financial and accounting information is to establish a base for economic and financial decision-making. All decision-makings need information which leads to selecting an efficient and effective resolution. Optimal and economic resolution selection requires compiling data, processing, and analyzing and logical inferences form information, which is called financial analysis in financial management literature. Analysis of financial statements helps shareholder and creditors in measuring whether as to firms are improving financially or in the future it will face constraint and bankruptcy (Rahnamaee et al, 2006)
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