Predictors of Bankruptcy Probability among  Malaysian Civil  Servants : Examining the Subjective Measurement

Nair, Yasotha; Paim, Laily; Sabri, Mohamad Fazli; Rahim, Husniyah Abdul

doi:10.24191/jeeir.v4i1.9076

Cited by 4 publications

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“…They found that there were positive relationships between money management, financial literacy and non-performing loan with personal bankruptcy. Nair et al (2016) applied logistic regression to identify the determinants of civil servants' bankruptcy probability in Malaysia. They found that asset ownership, attitude toward debts and financial management practices are significant predictors of personal bankruptcy.…”

Section: Jefas 2447mentioning

confidence: 99%

Personal bankruptcy prediction using decision tree model

Nor

Ismail²,

Wah

2019

JEFAS

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Purpose Personal bankruptcy is on the rise in Malaysia. The Insolvency Department of Malaysia reported that personal bankruptcy has increased since 2007, and the total accumulated personal bankruptcy cases stood at 131,282 in 2014. This is indeed an alarming issue because the increasing number of personal bankruptcy cases will have a negative impact on the Malaysian economy, as well as on the society. From the aspect of individual’s personal economy, bankruptcy minimizes their chances of securing a job. Apart from that, their account will be frozen, lost control on their assets and properties and not allowed to start any business nor be a part of any company’s management. Bankrupts also will be denied from any loan application, restricted from travelling overseas and cannot act as a guarantor. This paper aims to investigate this problem by developing the personal bankruptcy prediction model using the decision tree technique. Design/methodology/approach In this paper, bankrupt is defined as terminated members who failed to settle their loans. The sample comprised of 24,546 cases with 17 per cent settled cases and 83 per cent terminated cases. The data included a dependent variable, i.e. bankruptcy status (Y = 1(bankrupt), Y = 0 (non-bankrupt)) and 12 predictors. SAS Enterprise Miner 14.1 software was used to develop the decision tree model. Findings Upon completion, this study succeeds to come out with the profiles of bankrupts, reliable personal bankruptcy scoring model and significant variables of personal bankruptcy. Practical implications This decision tree model is possible for patent and income generation. Financial institutions are able to use this model for potential borrowers to predict their tendency toward personal bankruptcy. Social implications Create awareness to society on significant variables of personal bankruptcy so that they can avoid being a bankrupt. Originality/value This decision tree model is able to facilitate and assist financial institutions in evaluating and assessing their potential borrower. It helps to identify potential defaulting borrowers. It also can assist financial institutions in implementing the right strategies to avoid defaulting borrowers.

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Section: Jefas 2447mentioning

confidence: 99%

Personal bankruptcy prediction using decision tree model

Nor

Ismail²,

Wah

2019

JEFAS

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“…This shows the army in Aviation Medical Institute, Subang, did not display satisfaction or dissatisfaction concerning the probability of individual bankruptcy. This finding is also relevant to Nair et al (2016) research, as the study findings showed that the probability for bankruptcy is considerably predictable by assets ownership, debt attitudes, and financial management practices. The results were similar to Elangkovan (2012) studies.…”

Section: Discussionmentioning

confidence: 56%

“…By looking at the debt mindset, we will understand and dissect higher outcomes regarding whether individual debt choices drive individual bankruptcy. Nair (2016) states the money attitude, the attitude to credit, the attitude to expenditure, and several measured factors that relate to personal finance factors. In this analysis, individual attitudes towards personal finance were chosen as they are more critical to the probability of bankruptcy and helped measure a person's readiness to accept or respect his values or practices at the debt level.…”

Section: Attitude Towards Debtsmentioning

confidence: 99%

The Determinant Factor of Probability of Individual Bankruptcy: The Case for the Army in Aviation Medical Institute, Subang

Alias¹,

Harith²

2022

IJARBSS

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The number of bankruptcy cases is rising significantly in Malaysia. According to the Malaysia Department of Insolvency, 2,591 individuals were declared bankrupt in May 2021. The movement towards personal bankruptcy is now one of the government's main concerns. Therefore, this study aims to determine the factors towards the probability of individual bankruptcy; financial planning, rate of income, and attitude towards debts among the army in the Aviation Medical Institute, Subang. The study adopted a cross-sectional design, and 110 questionnaires were distributed to the army in the Aviation Medical Institute, Subang. A simple random sampling technique was employed, and the data gathered were analyzed using mean, multiple regression, and Pearson correlation analysis. The findings indicate a positive relationship between financial planning (r = 0.799, p < 0.000), rate of income (r = 0.780, p < 0.000), and attitude towards debts (r = 0.715, p < 0.000). The multiple regression results have shown that the research model explains that 70 percent of the dependent variable variance and all independent variables except attitude towards debts significantly impact individual bankruptcy probability. The most contributing factor of the probability of individual bankruptcy among the army in the Aviation Medical Institute, Subang were financial planning factors with the value of 0.503 and a significant value of 0.000. To increase awareness of army personnel's financial planning, they must develop a better understanding of financial literacy, develop good attitudes towards spending, and seek financial advisors to guide financing planning. This study's findings are also beneficial for higher education, government, financial and legal institutions, society in general, and the army, especially in the context of consciousness and the cost of financial distress. The information enables everyone to avoid bankruptcy and take necessary precautions or rectification to reduce the number of bankruptcies. Therefore, this study sought to be a centerpiece to help the government authorities develop better support to guide the army to manage their financial planning sustainably.

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Financial Literacy and Retirement Planning among Government Officers in Malaysia

Tan

Singaravelloo

2019

International Journal of Public Administration

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Predictors of Bankruptcy Probability among Malaysian Civil Servants : Examining the Subjective Measurement

Cited by 4 publications

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Personal bankruptcy prediction using decision tree model

Personal bankruptcy prediction using decision tree model

The Determinant Factor of Probability of Individual Bankruptcy: The Case for the Army in Aviation Medical Institute, Subang

Financial Literacy and Retirement Planning among Government Officers in Malaysia

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