Open Access Case Study

An Analysis of the Predictors of Financial Distress for Zimbabwe Listed Corporates

Louisa Muparuri, Victor Gumbo

Asian Journal of Probability and Statistics, Page 1-14
DOI: 10.9734/ajpas/2021/v12i430291

This study brings novelty to the area of corporate distress modelling in Zimbabwe by exploring company-specific indicators of corporate distress, unlike most of the previous studies, which used financial performance indicators. Using a binary logistic regression on a time series dataset collated between 2010 and 2017, this study establishes book value, book value per share, average debt to equity and equity per share as very significant determinants of corporate distress on the Zimbabwe Stock Exchange (ZSE). Future studies incorporating artificial intelligence and a combination of both the traditional financial ratios and market-based indicators is recommended to expand the scope of the study.