CORPORATE ATTRIBUTES AND BANKRUPTCY PREDICTION: THE CASE OF LISTED HALAL FOOD AND BEVERAGE COMPANIES

Abstract

The study investigates the relationship between corporate attributes and the probability of bankruptcy of halal food and beverage companies in five countries: Indonesia, Malaysia, Pakistan, Saudi Arabia and the United Arab Emirates (UAE). Using a sample of 56 firms from 2008 to 2021, we find the working capital period (cash conversion cycle), leverage and firm growth to increase the probability of these companies becoming bankrupt. In contrast, liquidity, profitability and firm size reduce the likelihood of these firms being declared bankrupt. The findings reveal essential firm attributes that should be helpful to the management of halal food and beverage firms, relevant regulators and potential investors toward ensuring the firms’ sustainable operations.