Measuring financial fragility using the (Z-Score) model for a sample of Jordanian industrial companies for the period (2005-2019)
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Abstract
The research aims to measure the extent of financial fragility that companies operating within the Jordanian industrial sector may suffer from for the period (2005-2019) and registered in the Amman Stock Exchange. It also tries to identify whether the size of companies has a role in causing financial fragility, which contributes to increasing financial awareness towards This invisible risk is (the risk of financial fragility) by managers and investors in order to hedge it and avoid it, as it is one of the irregular risks that may afflict companies and institutions that appear to be healthy and successfully operate, but in the event of being exposed to the slightest shock Financial may collapse and enter into financial problems that may lead to bankruptcy and liquidation, and by reviewing most of the previous studies that dealt with the subject of financial fragility, the research gap was diagnosed that most studies have chosen a period of clear economic crises that were the cause of the fragility of institutions and hence the fragility of the economic system As well as the scarcity of dealing with the subject of financial fragility from a partial perspective, specifically the industrial sector, and the (z score) indicator was chosen to measure financial fragility in agreement with the study (Hussein et al., 2020) and Dr. A study (Ashraf et al., 2016) and a study (Fielding & Rewilak, 2015), and the research reached a set of results, the most important of which was that the majority of the research sample companies suffer from high financial fragility, and they were The majority of these financially fragile companies are small-sized companies, and the (z-score) index had the ability to measure and classify companies according to financial fragility, and the most important proposals made by the study were in two aspects, the first for corporate boards, financial managers and dealers with the financial market, and the second for academics and researchers to face the risk of financial fragility.
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