المستخلص: |
The predicting financial failure helps decision-making in an organization to mitigate the effects of failure and enable it to achieve continuity, and the financial ratios are the main pillar in this process by finding ratios that contribute to the interpretation of financial failure, and the formation or suggestion of models through which they reveal in advance the possibility of its occurrence, so This study aimed to identify the factors explaining the financial failure, starting from measuring the extent of financial ratios correlated with the occurrence of financial failure phenomenon at the level of a sample of 30 joint stock companies listed on the Amman Stock Exchange, using 33 financial ratios The study found that there is no correlation between the activity rates and the phenomenon of financial failure and its presence in terms of liquidity, debt, profitability and market ratios, which means that a change in the ratios of these groups is linked to the occurrence of financial failure phenomenon, and the latter contributes to predict financial failure.
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