Assessment Of Financial Health Research Articles

Forewarning Bankruptcy: An Indigenous Model for Pakistan

Predicting financial health of enterprises is crucial for companies and banks (who lend money to them), as well as to all stakeholders. State Bank of Pakistan (SBP) has taken measures to implement Basel Accord framework for minimizing credit risk since its implementation in 2005. In this regard, there was a need for the development of corporate financial distress and bankruptcy prediction model which is specific to Pakistani companies to serve as a reliable tool for the assessment of financial health. In this paper we have proposed a model after a comprehensive analysis for objective prediction of financial health of companies. The proposed model has been tested for a sample of one hundred companies from non-financial sector of PSX listed companies, among which fifty were bankrupt and fifty financially healthy. Twenty-nine financial and accounting variables were used as input to model development procedure. The results suggest that the proposed model is capable of making a correct forecast of financial health of these companies.

Rural Versus Urban Hospitals in Poland. Hospital's Financial Health Assessment

Literature studies suggest, that hospitals in rural areas are usually smaller and more sensitive to changes in health policies. The aim of this research is to assess and compare the financial condition of rural and urban hospitals. Basing on literature studies, we have assumed, that rural hospitals are characterized by lower profitability, higher debt and lower overall financial condition. We have proved, that rural hospital, although smaller, have lower debt ratios and better financial condition (especially in terms of profitability and liquidity). We have applied statistical tool and authorial methodology (“The M Method”), which basis on synthetic indicators of financial condition.

Accounting for Financial Health: Different Local Governments’ Choices in Different Governance Settings

The purpose of this paper is to assess the extent to which a local government needs to have a specific set of accounting tools and techniques for financial health assessment attuned to the governance model in use for services delivery. In contrast with previous literature, which has discussed financial health measurement systems in local governments as an all-compassing tool, we stress the idea that measuring financial health must be assessed in the context of the governance setting in use.