Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
The role of liquidity and solvency in the probability of DFI loan defaults by private firms
Mini Dissertation (MBA)--University of Pretoria, 2018.
Saved in:
| Other Authors: | |
|---|---|
| Format: | Thesis |
| Language: | English |
| Published: |
University of Pretoria
2019
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613693846487040 |
|---|---|
| access_status_str | Open Access |
| author2 | Fairhurst, Keith |
| author_browse | Fairhurst, Keith |
| author_facet | Fairhurst, Keith |
| collection | Thesis |
| dc_rights_str_mv | © 2019 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Mini Dissertation (MBA)--University of Pretoria, 2018. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/68867 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:40:12.572Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/68867 The role of liquidity and solvency in the probability of DFI loan defaults by private firms Fairhurst, Keith ichelp@gibs.co.za Kosana, Tokelo UCTD Mini Dissertation (MBA)--University of Pretoria, 2018. The aim of this research was to investigate the role of liquidity and solvency in the prediction of DFI (ÒDevelopment finance institutionÓ) loan defaults held by private firms. The research further considered the contribution of firm size and industry group in the prediction of DFI loan defaults. The study made use of firm-level and industryÐlevel data maintained by the Industrial Development Corporation consisting of 566 accounts of privately-held firms for a period between 2008 and 2014. Through using a binary logistic regression technique, the empirical results showed that solvency is statistically significant in explaining DFI loan defaults such that when solvency improves, the likelihood of default reduces. The study further showed that, even though firms at default are illiquid, liquidity is not a significant variable in the prediction of DFI loan defaults. Firm size did not influence the role of solvency and liquidity in DFI loan defaults. However, Industry group was found to have a significant influence in the DFI loan default prediction models. The inclusion of solvency and industry group variables is expected to improve the predictive power of default prediction models on DFI loans. This research only focused on private firms default behaviour towards DFI loans which limits its generalizability to other population groups. The study contributes to the literature of corporate failure prediction and represents one of very few sets of results on the determinants of default in private firmsÕ DFI lending. This research can assist DFIs and managers in understanding the factors that impact the credit risk of privately held firms. zk2019 Gordon Institute of Business Science (GIBS) MBA 2019-04-04T10:17:02Z 2019-04-04T10:17:02Z 30-Mar-19 2018 Mini Dissertation Kosana, T 2018, The role of liquidity and solvency in the probability of DFI loan defaults by private firms, MBA Mini Dissertation, University of Pretoria, Pretoria, viewed yymmdd <http://hdl.handle.net/2263/68867> http://hdl.handle.net/2263/68867 en © 2019 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | UCTD The role of liquidity and solvency in the probability of DFI loan defaults by private firms |
| title | The role of liquidity and solvency in the probability of DFI loan defaults by private firms |
| title_full | The role of liquidity and solvency in the probability of DFI loan defaults by private firms |
| title_fullStr | The role of liquidity and solvency in the probability of DFI loan defaults by private firms |
| title_full_unstemmed | The role of liquidity and solvency in the probability of DFI loan defaults by private firms |
| title_short | The role of liquidity and solvency in the probability of DFI loan defaults by private firms |
| title_sort | role of liquidity and solvency in the probability of dfi loan defaults by private firms |
| topic | UCTD |
| url | http://hdl.handle.net/2263/68867 |