Examining the Effect of Altman¡¯s Zeta Model Score on the Share Price of Healthcare Companies Listed at Kuwait Stock Exchange

Musaed S. AlAli

International Journal of Economics and Finance, 2019, vol. 11, issue 4, 25-29

Abstract: The aim of this study is to examine the financial soundness and the effect of Altman¡¯s Zeta model score on the share price of healthcare companies listed at Kuwait stock exchange (KSE) over the period 2013-2017. Zeta model is a widely used model in examining the probability of bankruptcy for companies; it has been proven to be a reliable model in measuring the financial soundness for companies. Results obtained from this study showed that both companies under study, Yiaco and Advanced Technology, are confronting financial difficulties and are facing the risk of bankruptcy. The study also revealed that there is a statistically significant direct relation between Zeta score and the share price of these companies indicating that Kuwaiti investors do take the financial distress indicators into consideration when making their investment decisions.

Keywords: Altman bankruptcy model; Zeta model; Healthcare sector; Kuwait stock exchange market (KSE); share price (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ijef/article/view/0/38835 (application/pdf)
http://www.ccsenet.org/journal/index.php/ijef/article/view/0/38835 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:11:y:2019:i:4:p:25-29

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().